Bit Digital, Inc. (NASDAQ: BTBT) is New York-based bitcoin mining company. The Cayman Island exempt company has mining operates in the United States, as well as Canada. Shares of the bitcoin mining company are rallying 23% through early trading on Tuesday, October 5, 2021. Over the past three months, Bit Digital has seen average daily volume of 18.85 million shares. However, volume of 17.61 million shares or dollar volume of $161.31 million, has already exchanged hands through early trading Tuesday.
Shares of Bit Digital are gaining after the company announced that it has completed its previously-announced private placement offering with institutional investors. The offering sold 13,490,728 ordinary shares of Bit Digital. The company also issued the investors unregistered warrants that are able to purchase up to 10,118,046 shares.
The purchase price per unit was set at $5.93, which holds one ordinary share and one warrant to purchase three-fourths of an ordinary share. The warrants hold an exercise price of $7.91 and have a life of three and a half years. Bit Digital raised $80 million gross proceeds from the private placement. The company did not provide any specifics about the use of the gross proceeds.
Bit Digital has been busy recently, as the company also appointed Brock Pierce to its Board of Directors in September 2021. The company also entered into a strategic co-mining agreement with Blockfusion last month. The strategic partnership looks to collaborate in the operation of a 35 MW bitcoin mining system for two years.
The private placement raise comes as the underlying price of bitcoin continues to flirt around the $50,000 level. China’s latest ban of cryptocurrency is shifting the mining power to the United States. Growing institutional demand for bitcoin exposure is likely to have played a part in the private placement offering.
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