Why Bit Digital Stock Soared Today
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Shares of cryptocurrency miner Bit Digital (NASDAQ: BTBT) soared on Tuesday after the company announced details regarding an $80 million financing arrangement. And the price of Bitcoin (CRYPTO: BTC), which the company mines, has increased significantly over the past 24 hours and now sits above $50,000 per coin. As a result of these two things, Bit Digital stock was up a whopping 25% as of 1:45 p.m. EDT today.
Bit Digital is raising cash by selling stock. It's selling over 13 million ordinary shares, and warrants that equate to over 10 million ordinary shares once they convert. The warrants have a conversion price of $7.91, and with today's 25% pop, we're already there. Therefore, investors should expect almost 24 million shares to be added to the total shares outstanding.
A cryptocurrency mining rig. Image source: Getty Images.
Source Fool.com
