Bit Digital, Inc. (BTBT) Stock had a Hefty Tuesday, Here’s Why

Bit Digital, Inc. (BTBT), a company engaged in the bitcoin mining business, has increased by 4.15% in aftermarket trading session. As a result, BTBT stock was trading at $10.78 at the time of this writing. In Tuesday’s regular session, BTBT stock surged 36.36% and closed the day at $10.35. The increase is attributable to the announcement of the closing of an $80 million private placement.

BTBT announced the closing of private placement

On Tuesday, BTBT announced the closing of previously announced private placement with institutional investors for the sale of 13,490,728 ordinary shares. The company also issued to investors the unregistered warrants to purchase up to an aggregate of 10,118,046 ordinary shares. The purchase price for one ordinary share and one warrant of purchasing ¾ of an ordinary share was set at $5.93. The warrants had the exercise price of $7.91 per whole ordinary share. They were exercisable immediately. They had a term equal to three and one-half years following the effective date of the release of the resale registration statement registering the ordinary and warrant shares. The company said that the gross proceeds from the placements were approximated to be $80 million before deduction of placement agent fee as well as other offering expenses. H.C. Wainwright & Co. was acting as the exclusive placement agent for the offering.

BTBT Q2 2021 financial results

On 20th August, BTBT reported the quarterly results for the second quarter of the fiscal year 2021, which ended 30th June 2021. According to the details, the company had cash and cash equivalents of $28.25 million on 30th June. The total assets in possession of the company stood at $108.05 million, while total liabilities were $3.21 million. The company generated revenue of $28.34 million from bitcoin mining during the quarter. During the equivalent period of 2020, the revenue from bitcoin mining stood at $0.67 million. The total operating expenses for the three months hovered around $17.56 million. For the equivalent three-month period of 2020, the operating expenses remained at $0.92 million. The net loss for three month period stood at $1.33 million, while during the equivalent period of 2020, the net loss was $0.25 million. The loss per basic and diluted share was $0.03 for three month period, but in the equivalent period of 2020, it was $0.01.

What future holds in store for BTBT stock?

The last three months have proved to be a glimmer of hope for BTBT stock, as evident from the fact that the stock rose 85% during the period. Analysts believe that strong quarterly performance is behind this sharp rise. Based on that, it could be said that BTBT stock is on the verge of success.

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