Bit Digital Stock Slides After $80M Private Placement

Institutional investors bought 13.5 million shares from the bitcoin mining company.

By Brandy Betz

Sep 30, 2021 at 2:58 p.m. UTC

Updated Sep 30, 2021 at 3:32 p.m. UTC

Crypto mining machines (GreenBelka/Shutterstock) — Mining machines (GreenBelka/Shutterstock)

Brandy Betz

Brandy covers crypto-related venture capital deals for CoinDesk.

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Bit Digital (Nasdaq: BTBT) announced an $80 million private placement to sell stock to institutional investors. The share price fell 14% to $6.80 as of 14:00 UTC.

The bitcoin mining company agreed to sell 13.5 million ordinary shares and warrants for another 10.1 million shares. The combined purchase price of one share and one warrant is $5.93. The warrants, each of which allows the purchase of three-fourths of a share, will have an exercise price of $7.91 per whole share.

H.C. Wainwright & Co. is the exclusive placement agent. Bit Digital said it expects the placement to close on Oct. 4.

Bit Digital earlier this week appointed Brock Pierce, chairman of the Bitcoin Foundation, to its board of directors, effective Oct. 31.

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