Bit Digital’s stock plummeted after announcing a $150 million share sale and a transition from Bitcoin mining to Ethereum staking.
Former Bitcoin mining firm Bit Digital fell sharply this week, with its share price tumbling almost 19% over the five-day period to close at $1.99 on Friday, with a 15% drop in just 24 hours.
The plunge follows major company announcements, including a $150 million public offering and a strategic pivot to Ether staking. On Thursday, the company announced a public offering of 75 million ordinary shares that is intended to raise $150 million.
Bit Digital plans to issue the 75 million ordinary shares at $2 each. The proceeds will be used to purchase Ether (ETH), doubling down on its previous decision to shift to an Ethereum-focused company.