A Nasdaq firm is issuing 10 new shares for every old one to buy Bitcoin

Alpha Modus shares fell 25% after the corporate agreed to subject greater than 10 instances its present share rely for Bitcoin.

The Nasdaq-listed firm stated 10 non-US buyers would contribute 3,170 BTC in alternate for 51.62 million Class A shares and warrants overlaying one other 51.62 million shares, in response to an Aug. 27 SEC filing.

The settlement values the Bitcoin at $71,000 every, implying about $225.1 million of consideration. The transaction has been signed however has not but closed, that means the Bitcoin has not been transferred and the brand new securities haven’t been issued.

Alpha Modus had about 4.99 million Class A shares excellent beneath the settlement’s Aug. 24 capitalization desk. Issuing the preliminary 51.62 million shares would raise that complete to roughly 56.61 million and scale back the pre-deal shares to about 8.8% of the enlarged base.

Which means the corporate would subject about 10.35 new shares to the Bitcoin buyers for each present Class A share.

The warrants may add one other 51.62 million shares if exercised at $4.36 over their two-year time period, making a second layer of potential dilution. Useful-ownership limits, Nasdaq necessities, and any crucial shareholder approvals nonetheless apply.

Traders reacted negatively to the proposal, pushing Alpha Modus down about 25% to $2.84 after the announcement.

Bitcoin deal doubles as Nasdaq rescue try

The transaction additionally serves a extra rapid goal for Alpha Modus: repairing a steadiness sheet that has put its Nasdaq itemizing in danger.

Nasdaq notified the corporate in April that it did not fulfill any of three various Capital Market requirements overlaying internet revenue, market worth of listed securities or stockholders’ fairness. Alpha Modus later submitted a compliance plan.

Its newest quarterly filing confirmed $2 million in money, a $6.1 million stockholders’ deficit and a $6.3 million working-capital deficit. The corporate reported no income for both the quarter or the primary half of 2026 and posted a $6.2 million loss over the six-month interval.

The submitting additionally raised substantial doubt about Alpha Modus’s capability to proceed as a going concern and estimated that the corporate wanted no less than one other $2.5 million to keep up its development plan.

Administration expects the contributed Bitcoin to strengthen stockholders’ fairness and assist deal with the Nasdaq deficiency.

The deal would additionally ship Bitcoin moderately than money, that means it could not routinely resolve Alpha Modus’s near-term working liquidity wants.

Alpha Modus strikes in opposition to a retreating treasury commerce

The deal’s timing is notable as a result of Alpha Modus is transferring deeper into Bitcoin simply as the company treasury commerce is dropping favor with buyers.

The 50 largest publicly traded Bitcoin holders noticed their mixed market capitalization fall to about $67 billion in August from roughly $150 billion in July 2025, in response to the Financial Times.

The mannequin was popularized by Michael Saylor’s Technique, whose aggressive Bitcoin purchases inspired different public corporations to lift debt and fairness to build up the asset.

Nevertheless, Bitcoin has fallen about 30% over the previous 12 months regardless of its latest rebound towards $80,000, whereas many treasury-company shares have declined rather more sharply.

In consequence, some corporations have begun promoting their BTC holdings or refocusing on their core companies as leveraged treasury methods amplified the draw back.

Alpha Modus is taking the alternative method. Chief Govt William Alessi stated the corporate had beforehand thought of a Bitcoin technique when costs had been close to file highs however selected to not proceed.

He stated:

“We thought of pursuing this technique when Bitcoin was close to file highs, and determined that timing was not optimum.”

Alessi is successfully betting that Bitcoin’s 30% retreat has created a greater entry level than final 12 months’s highs.

Nevertheless, early indications present that buyers have been much less satisfied to this point, as proven by the steep decline within the agency’s inventory following the transfer’s announcement.