BTC Digital Ltd. Announces Exercise of Over-Allotment Option in Public Offering

Rhea-AI Summary

BTC Digital (NASDAQ: BTCT) announced the exercise of an over-allotment option by its underwriter in a public offering. The underwriter purchased an additional 228,853 Ordinary Shares at $8.00 per share, generating extra gross proceeds of approximately $1.8 million. Following this exercise, the total offering increased to 1,108,853 shares with total gross proceeds of approximately $8.8 million, before deducting fees and expenses. The closing is expected on December 12, 2024. Aegis Capital Corp. served as the sole book-running manager for the offering, which was made under an effective shelf registration statement on Form S-3.

Positive

• Additional $1.8M in gross proceeds from over-allotment exercise
• Total gross proceeds increased to $8.8M
• Successful completion of public offering with full exercise of over-allotment option

Negative

• Potential dilution for existing shareholders due to additional 228,853 shares issued
• Offering expenses and underwriting fees will reduce net proceeds

Insights

Financial Analyst

The exercise of the over-allotment option demonstrates strong institutional demand for BTCT shares, bringing the total raise to $8.8 million. The additional $1.8 million at $8.00 per share provides extra working capital, though it does result in further dilution of approximately 25.8% based on the company's market cap. Notably, Aegis Capital's decision to exercise the full greenshoe option suggests confidence in the stock's near-term performance and ability to maintain price stability. However, investors should consider that this significant dilution could pressure share prices in the short term despite the enhanced liquidity position.

Market Research Analyst

The successful completion of this offering, including the over-allotment, positions BTCT more competitively in the blockchain technology sector. The timing aligns with increased institutional interest in blockchain-related equities, though the relatively small offering size of $8.8 million indicates this is primarily for operational expansion rather than major strategic initiatives. The $8.00 pricing point and full exercise of the over-allotment option suggest a balanced market reception, neither too hot nor too cold. This capital raise strengthens the company's balance sheet but represents a relatively modest fundraising in the broader blockchain industry context.

SINGAPORE, Dec. 12, 2024 /PRNewswire/ -- BTC Digital Ltd. (NASDAQ: BTCT) (the "Company"), a blockchain technology company, today announced that the underwriter of its previously announced public offering of common stock has exercised its option to purchase an additional 228,853 Ordinary Shares at the public offering price of $8.00 per share, resulting in additional gross proceeds of approximately $1.8 million. After giving effect to the exercise of the over-allotment option, the total number of Ordinary Shares sold by the Company in the public offering increased to 1,108,853 shares and gross proceeds increased to approximately $8.8 million, before deducting underwriting fees and other estimated offering expenses payable by the Company. The exercise of the over-allotment option is expected to close on December 12, 2024, subject to customary closing conditions.

Aegis Capital Corp. acted as the sole book-running manager for the offering.

The offering is being made pursuant to an effective shelf registration statement on Form S-3 (No. 333-283367) previously filed with the U.S. Securities and Exchange Commission (SEC) and declared effective by the SEC on December 5, 2024. A final prospectus supplement and accompanying prospectus describing the terms of the proposed offering is on file with the SEC and available on the SEC's website located at www.sec.gov. Electronic copies of the final prospectus supplement and the accompanying prospectus may be obtained, when available, by contacting Aegis Capital Corp., Attention: Syndicate Department, 1345 Avenue of the Americas, 27th floor, New York, NY 10105, by email at syndicate@aegiscap.com, or by telephone at +1 (212) 813-1010.

Interested parties should read in their entirety the prospectus supplement and the accompanying prospectus and the other documents that the Company has filed with the SEC that are incorporated by reference in such prospectus supplement and the accompanying prospectus, which provide more information about the Company and such offering.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About BTC Digital Ltd.

BTC Digital Ltd.is a blockchain technology company, with a long-term strategy to create value across the metaverse, blockchain and cryptocurrency mining industry. The Company is committed to developing blockchain related businesses in North America, including cryptocurrency mining, mining farm construction, mining pool and data center operation, and miner accessories business.

Forward-Looking Statements

The foregoing material may contain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, each as amended. Forward-looking statements include all statements that do not relate solely to historical or current facts, including without limitation statements regarding the Company's product development and business prospects, and can be identified by the use of words such as "may," "will," "expect," "project," "estimate," "anticipate," "plan," "believe," "potential," "should," "continue" or the negative versions of those words or other comparable words. Forward-looking statements are not guarantees of future actions or performance. These forward-looking statements are based on information currently available to the Company and its current plans or expectations and are subject to a number of risks and uncertainties that could significantly affect current plans. Should one or more of these risks or uncertainties materialize, or the underlying assumptions prove incorrect, actual results may differ significantly from those anticipated, believed, estimated, expected, intended, or planned. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, the Company cannot guarantee future results, performance, or achievements. Except as required by applicable law, including the security laws of the United States, the Company does not intend to update any of the forward-looking statements to conform these statements to actual results.

For more information, please visit: https://btct.investorroom.com/

 

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SOURCE BTC Digital Ltd.

FAQ

How much additional capital did BTCT raise through the over-allotment option exercise?

BTCT raised an additional $1.8 million through the exercise of the over-allotment option, with shares priced at $8.00 each.

What is the total size of BTCT's public offering after the over-allotment exercise?

The total offering increased to 1,108,853 shares, generating approximately $8.8 million in gross proceeds before fees and expenses.

When is the over-allotment option expected to close for BTCT?

The over-allotment option is expected to close on December 12, 2024, subject to customary closing conditions.

What was the price per share for BTCT's public offering?

The public offering price was $8.00 per Ordinary Share.

Who was the underwriter for BTCT's public offering?

Aegis Capital Corp. acted as the sole book-running manager for the offering.