Bit Brother Ltd (BETS) shares are experiencing a significant decline, trading lower by 37% to $0.022 on Thursday morning. This drop in stock value follows the company’s announcement on Tuesday regarding a deal to sell $12.0 million worth of Class A ordinary shares, Class D warrants, and Class E warrants to accredited investors through a registered direct offering.
The offering consists of 184,615,385 Class A ordinary shares, along with associated Class D and Class E warrants, which are being sold at $0.065 per share. Investors have the option to exercise the Class D warrants immediately at $0.06 for five years, with potential adjustments after 30 days. Additionally, the Class E warrants can be exercised at $0.13 for two years. Both warrant types offer cashless exercise options.
The offering is expected to conclude around December 8, pending standard conditions. Maxim Group LLC is overseeing the placement as the sole placement agent.
In other news, Bit Brother recently obtained a Certificate of Occupancy for its new 2-acre cryptocurrency mining farm in Abilene, Texas. This certificate ensures compliance with city regulations by segregating industrial operations from residential zones. The company has invested $5 million in mining servers and aims to commence operations in early 2024. Their goal is to produce 12 Bitcoin (BTC/USD) per month, subject to successful equipment delivery and functionality.
According to data from Benzinga Pro, Bit Brother has a 52-week high of $0.66 and a 52-week low of $0.021.
The decline in Bit Brother’s shares may be attributed to the volatility surrounding the registered direct offering and the uncertainty regarding the company’s future prospects. Investors are closely monitoring the situation and assessing the potential impact on the company’s valuation.
Furthermore, analysts are predicting the approval of a Bitcoin exchange-traded fund (ETF) by January 10th. This development could have significant implications for the cryptocurrency market and may present opportunities for investors to strengthen their BTC portfolio.
As Bit Brother’s offering progresses, investors and industry observers will be keen to evaluate the outcome and its implications for the company’s future growth and stability. With the new mining farm in Texas, Bit Brother aims to establish a strong presence in the cryptocurrency mining sector, capitalizing on the growing demand for digital assets.
