BTBT Stock: Why It Increased This Month

By Amit Chowdhry ● Oct 14, 2021
  • The stock price of Bit Digital Inc (NASDAQ: BTBT) saw its stock price increased by over 45% between Monday, October 4 and yesterday. This is why it happened.

The stock price of bitcoin mining company  Bit Digital Inc (NASDAQ: BTBT) saw its stock price increased by over 45% between Monday, October 4 and yesterday. Investors appear to be responding positively to a couple of news reports from the company.

On October 12, Bit Digital announced that it has signed agreements with Bitmain Technologies Limited to buy 10,000 Bitcoin mining hardware. The announced purchases are expected to increase Bit Digital’s miner fleet hash rate by over 1.0 Exahash (EH/s).

And on October 5, Bit Digital had announced that it has closed its previously announced private placement with institutional investors for the sale of 13,490,728 ordinary shares. The company also issued to the investors unregistered warrants to purchase up to an aggregate of 10,118,046 ordinary shares. The purchase price for one ordinary share and one warrant to purchase three-fourths of an ordinary share is $5.93. And the warrants have an exercise price of $7.91 per whole ordinary share, are exercisable immediately, and have a term equal to three and one-half years following the effective date of the resale registration statement registering the ordinary shares and warrant shares.

KEY QUOTE:

“By contracting for these Bitmain units, we have opened a new channel in our procurement strategy, diversifying our access to miners. While we believe we continue to enjoy differentiated access to the miner spot market, and expect to continue our ongoing spot purchases, our deal with Bitmain is an efficient means to procure a large quantum of new miners on attractive terms. This is key, as we believe that scale is paramount in importance in the bitcoin mining business. We look forward to a productive ongoing customer relationship with Bitmain.”

— Bryan Bullett, Bit Digital’s CEO

“Bit Digital’s purchase of our Antminer products will help solidify the company as one of the key mining businesses in North America. The company’s purchase of our miners will assist in promoting their long-term goals and strategy as they continue to enhance their mining operations. We look forward to building a long-standing cooperation with Bit Digital.”

— Irene Gao, Antminer Sales Director of NCSA Region, Bitmain

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.