Abits Group stock price plummets due to $2.1 million stock issuance

2026-02-24 12:30:56

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Investing.com – Abits Group Inc (NASDAQ:ABTS) stock dropped 23.3% on Monday after the company announced a private placement of approximately $2.1 million in common stock and pre-funded warrants with institutional investors.

The company, which operates digital centers and is involved in Bitcoin mining, has signed a definitive agreement to sell 792,452 common shares or pre-funded warrants at $2.65 per share. The pre-funded warrants are priced at $2.64999 each, equal to the public offering price minus $0.00001 per warrant exercise price.

The pre-funded warrants are immediately exercisable and can be exercised at any time until fully exercised. For each pre-funded warrant sold, the number of common shares outstanding will decrease on a one-to-one basis.

According to Nasdaq rules, this transaction was priced at market value and is expected to settle around February 24, 2026, subject to customary closing conditions. Abits Group expects total proceeds from the offering to be approximately $2.1 million.

The company plans to use the net proceeds, along with existing cash, for general corporate purposes and working capital.

Aegis Capital Corp. served as the exclusive placement agent for the offering. Kaufman & Canoles, P.C. acted as the company’s U.S. legal counsel, and Lucosky Brookman LLP served as Aegis Capital Corp.'s U.S. legal counsel.

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