Why Is BTCT Stock Falling Today?

The company is raising capital from institutional investors by selling common units comprising shares and warrants.

• BTC Digital is planning to raise $7 million and noted that if common warrants are exercised, potential additional gross proceeds will be about $21 million.
• The offering was priced at $1.14 per common unit, which is same as the stock’s closing price on Thursday.
• Last week, the company said it is pivoting toward Ethereum and converting all of its existing and future Bitcoin holdings into Ethereum.

Shares of BTC Digital (BTCT) tanked on Friday after the blockchain and artificial intelligence computing infrastructure company priced a securities offering.

At the time of writing, BTCT stock was down more than 30% and on track for a record low if session losses hold.

BTCT’s Stock Offering

The company said it is raising $7 million from certain institutional investors by selling more than 6.1 million common units. Each unit consists of one ordinary share or one pre-funded warrant and PIPE common warrants to purchase one ordinary share. BTC Digital said that if common warrants are exercised, potential additional gross proceeds will be about $21 million.

The offering was priced at $1.14 per common unit, which does not represent a premium or a discount to the stock’s last closing price on Thursday. The company currently has 9.52 million shares outstanding. Proceeds from the offering, along with its cash on hand, will be used for general corporate purposes and working capital.

According to Koyfin data, the top five institutional shareholders in the company are Yun Feng Assets, UBS Asset Management, Citadel Advisors, XTX Markets, and Citigroup.

Pivot from Bitcoin To Ethereum

The latest offering comes on the heels of a $6 million capital raise via a stock offering closed last week. BTC Digital used those proceeds and added a new $1 million position in the second-most popular cryptocurrency, Ethereum.

The company also said that, going forward, it will convert all of its existing and future Bitcoin holdings into Ethereum and focus on mid‑ and long‑term growth within the Ethereum ecosystem.

"Ethereum has emerged as the premier platform for decentralized finance, real‑world asset tokenization, and scalable smart‑contract innovation," CEO Siguang Peng said last week. “This pivot not only positions us with one of the fastest‑growing crypto assets, but also enables us to participate directly in staking, DeFi protocols, RWA initiatives, and other leading Ethereum‑based opportunities."

What Retail Traders Think About BTCT

On Stocktwits, retail sentiment about the stock remained in ‘bearish’ territory over the past 24 hours.

BTCT stock has declined nearly 41% so far this year and over 75% over the past 12 months, underperforming the S&P 500.

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