SINGAPORE - BTC Digital Ltd. (NASDAQ: BTCT), a company specializing in blockchain technology and a significant player in Bitcoin mining with a market capitalization of $42 million, has completed a $20 million underwritten public offering. According to InvestingPro analysis, the stock is currently trading above its Fair Value, following a remarkable 362% surge over the past six months. The firm announced its intention to use the funds to expand its infrastructure, enhance its green energy mining operations, and invest in research and development for technological advancements.
The capital injection is earmarked for several strategic initiatives. BTCT plans to construct and expand mining farms in North America, focusing on the use of sustainable energy sources to reduce carbon emissions and support global sustainability efforts. The company's expansion comes amid challenging conditions, with InvestingPro data showing revenue of $8.48 million in the last twelve months and a negative gross profit margin of -12.82%. The company anticipates its mining operations to achieve a scale of 20 megawatts by mid-2025, which is expected to bolster its self-mining and hosting capabilities.
Additionally, the proceeds will finance the deployment of new mining machines to significantly increase computing power, reinforcing BTCT's leadership in technology and service delivery. Investment in R&D will focus on developing mining machines for alternative Proof of Work (PoW) cryptocurrencies, aiming to improve efficiency and energy performance.
Mr. Peng Siguang, Founder and CEO of BTCT, expressed that the offering is a pivotal achievement for the company, enabling breakthroughs in green energy applications and customer service. He emphasized BTCT's commitment to promoting sustainable development in the blockchain industry and generating value for customers.
BTCT's strategy includes creating value across the metaverse, blockchain, and cryptocurrency mining industry. It is dedicated to developing blockchain-related businesses in North America, which encompasses cryptocurrency mining, mining farm construction, mining pool and data center operation, and miner accessories business.
The news release contains forward-looking statements that are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those anticipated. BTCT has stated it does not plan to update any forward-looking statements unless required by law.
This expansion and investment initiative by BTC Digital Ltd. is based on a press release statement. InvestingPro subscribers have access to 13 additional ProTips and comprehensive financial metrics that provide deeper insights into BTCT's performance and potential, including detailed analysis of its volatility patterns and growth prospects.
In other recent news, BTC Digital Ltd. has announced significant developments in its operations. The company has unveiled plans to add 2,000 BITMAIN T21 miners to its North American operations, a move expected to nearly triple its current hash rate capacity to 600 petahashes. This addition of superior computational power is anticipated to enhance BTC Digital's mining efficiency and competitiveness in the global cryptocurrency mining industry.
Further, BTC Digital is set to expand its presence in the Southeast US, exploring business opportunities across Arkansas, Tennessee, Georgia, and Missouri. This initiative aims to meet the growing demand for computational power while focusing on sustainable energy sources.
In the realm of partnerships, BTC Digital has secured agreements to host and manage 1,100 Bitcoin mining machines for Recte Technologies Company Limited and ASIA INVESTMENT FUND SP2, marking an expansion within the cryptocurrency mining industry. The company has also increased its stake in a cryptocurrency mining venture, acquiring an additional 5.23% equity interest valued at approximately $1,050,400.
Finally, the company's shareholders have ratified Audit Alliance LLP as its independent registered public accounting firm for the fiscal year ending December 31, 2024, and approved the issuance of at least 600,000 ordinary shares through one or more non-public offerings. These recent developments reflect the shareholders' confidence in the company's current accounting oversight and strategy.
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