Bitmine Immersion (BMNR) Ends 4-Day Run After $365-Million Share Sale

We recently published 10 Stocks Lost This Big While Wall Street Celebrates. Bitmine Immersion Technologies, Inc. (NYSEAmerican:BMNR) is one of the worst performers on Monday.

Bitmine Immersion snapped a four-day winning streak on Monday, shedding 10.10 percent to finish at $55.10 apiece as investors disposed of shares following plans to raise $365.24 million from the sale of new shares.

red into a securities purchase agreement with an institutional investor for the sale of more than 5.2 million common shares at a price of $70 apiece, alongside warrants to purchase up to 10.4 million shares at an exercise price of $87.50.

The $70 price alone represents a 14-percent premium over its closing price on September 19. Meanwhile, the warrants will be exercisable upon issuance and expire on March 22, 2027.

Investors turned on sour on the news as it would result in the dilution of existing shares.

“BitMine has raised $365.24 million by selling our stock at a 14 percent premium to Friday’s close. By selling shares at $70 per share…this is materially accretive to existing shareholders as the primary use of proceeds is to add to our ETH holdings,” said Bitmine Immersion Technologies, Inc. (NYSEAmerican:BMNR)  Chairman Thomas Lee.

“In our view, this 14 percent premium reflects not only strong institutional investor interest in the BitMine story, but also confidence in our execution as a Company,” he added.

“Institutional investors have told us BitMine remains the only large-cap US stock to give investors direct exposure to Ethereum. Our August Chairman’s message resonates with many investors, who see the compelling supercycle for Ethereum as Wall Street moves to embrace and build upon this blockchain.”

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Disclosure: None. This article is originally published at Insider Monkey.