Bit Origin Announces Completion of Share Capital Reduction

Rhea-AI Summary

Bit Origin (NASDAQ: BTOG) has successfully completed a share capital reduction following shareholder approval and confirmation by the Grand Court of the Cayman Islands. The company has reduced the par value of each issued and authorized share from US$0.30 to US$0.000001.

Following this reduction, Bit Origin's authorized share capital is now US$500, divided into 500,000,000 ordinary shares (475,000,000 Class A and 25,000,000 Class B Ordinary Shares). The reduction was officially registered by the Cayman Islands Registrar of Companies on July 25, 2025.

CEO Jinghai Jiang stated this move provides increased flexibility for future corporate actions, including potential capital raises and strategic transactions.

Positive

• Increased flexibility for future corporate actions and strategic transactions
• Enhanced ability to execute potential capital raises
• Maintains fully paid-up status for all issued shares

Negative

• Significant reduction in nominal share value from $0.30 to $0.000001
• Potential dilution risk from future capital raises

Insights

Corporate Finance Specialist

Bit Origin's share capital reduction enhances financial flexibility for future fundraising and strategic transactions without changing ownership structure.

Bit Origin has completed a significant share capital reduction, decreasing the par value of each share from $0.30 to $0.000001 while maintaining the company's authorized share capital at $500. This technical financial maneuver, which received both shareholder approval and confirmation from the Grand Court of the Cayman Islands, doesn't change the number of outstanding shares or shareholders' ownership percentages.

This capital reduction is primarily a balance sheet restructuring that creates greater financial flexibility. By drastically reducing the par value of shares, Bit Origin has effectively created a larger spread between par value and market price, which provides more room for potential future share issuances. This maneuver typically serves as preparation for upcoming corporate actions that might include fundraising rounds, strategic acquisitions, or restructuring initiatives.

The CEO's statement confirms this strategic intent, highlighting that this move positions the company for "potential capital raises and strategic transactions." For a NASDAQ-listed company actively deploying blockchain technologies, such financial flexibility is particularly valuable given the capital-intensive nature of technology development and the strategic opportunities in the rapidly evolving blockchain space.

This administrative change, while not directly affecting operations or revenues, represents a deliberate positioning for future growth initiatives and reflects management's forward-looking approach to corporate finance structure.

SINGAPORE, Aug. 04, 2025 (GLOBE NEWSWIRE) -- Bit Origin Ltd (NASDAQ: BTOG) ("Bit Origin" or the "Company") today announced that it has completed a reduction of its issued share capital, following the approval by its shareholders and subsequent confirmation by the Grand Court of the Cayman Islands.

On June 5, 2025, the Grand Court of the Cayman Islands issued an order confirming the Company’s special resolution passed at its annual general meeting held on March 14, 2025, to reduce the par value of each issued and authorised share of the Company from US$0.30 to US$0.000001 (the “Share Capital Reduction”).

Following the Share Capital Reduction, the authorised share capital of the Company is US$500, divided into 500,000,000 ordinary shares of par value US$0.000001 each, comprising 475,000,000 Class A Ordinary Shares and 25,000,000 Class B Ordinary Shares. All issued shares remain fully paid up. The Share Capital Reduction was registered by the Cayman Islands Registrar of Companies on July 25, 2025.

Mr. Jinghai Jiang, Chairman and Chief Executive Officer of Bit Origin, commented, “The successful completion of the share capital reduction provides us with increased flexibility in executing future corporate actions, including potential capital raises and strategic transactions. This is another step forward as we continue to pursue long-term value for our shareholders.”

About Bit Origin Ltd

Bit Origin Ltd is an emerging growth company actively deploying blockchain technologies alongside diversified expansion strategies. For more information, please visit https://bitorigin.io.

Safe Harbor Statement

This announcement contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations and projections about future events and financial trends that the Company believes may affect its financial condition, results of operations, business strategy, and financial needs. Investors can identify these forward-looking statements by words or phrases such as "may," "will," "expect," "anticipate," "aim," "estimate," "intend," "plan," "believe," "potential," "continue," "is/are likely to" or other similar expressions. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results.

Company Contact

Bit Origin Ltd
Mr. Jiang Jinghai, Chairman of the Board, CEO and COO
Email: ir@bitorigin.io

To keep updated on Bit Origin’s news releases and SEC filings, please subscribe to email alerts at https://bitorigin.io/contact

FAQ

What is the new par value of BTOG shares after the capital reduction?

Following the Share Capital Reduction, the par value of each Bit Origin share was reduced from US$0.30 to US$0.000001.

How many authorized shares does Bit Origin (BTOG) have after the capital reduction?

Bit Origin now has 500,000,000 authorized ordinary shares, consisting of 475,000,000 Class A Ordinary Shares and 25,000,000 Class B Ordinary Shares.

When was the BTOG share capital reduction approved and completed?

The reduction was approved at the annual general meeting on March 14, 2025, confirmed by the Grand Court of the Cayman Islands on June 5, 2025, and registered on July 25, 2025.

What is the purpose of Bit Origin's share capital reduction?

The share capital reduction provides Bit Origin with increased flexibility for executing future corporate actions, including potential capital raises and strategic transactions.

What is the new authorized share capital of BTOG after the reduction?

Following the Share Capital Reduction, Bit Origin's authorized share capital is US$500, with shares having a par value of US$0.000001 each.