Why Bitcoin-Related Stock BTC Digital Is Getting Hammered

BTC Digital Ltd (NASDAQ:BTCT) shares are trading lower by 25.4% to $11.69 during Friday’s session after the company announced a $20 million public offering.

What Else: The offering includes 2.5 million ordinary shares and pre-funded warrants, priced at $8.00 per share or $7.999 per Pre-Funded Warrant, which have a nominal exercise price of $0.001 and are immediately exercisable.

Aegis Capital Corp. has a 45-day option to purchase up to 15% additional Ordinary Shares to cover potential over-allotments.

The offering is expected to close on December 9, pending customary conditions. Proceeds will support general corporate needs and working capital.

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Should I Sell My BTCT Stock?

Whether to sell or hold a stock largely depends on an investor's strategy and risk tolerance. Swing traders may sell an outperforming stock to lock in a capital gain, while long-term investors might ride out the turbulence in anticipation of further share price growth.

Similarly, traders willing to minimize losses may sell a stock that falls a certain percentage, while long-term investors may see this as an opportunity to buy more shares at a discounted price.

Shares of BTC Digital have gained 258.84% year to date. This compares to the average annual return of 40.89%, meaning the stock has outperformed its historical averages. Investors can compare a stock's movement to its historical performance to gauge whether this is a normal movement or a potential trading opportunity.

Investors may also consider market dynamics. The Relative Strength Index can be used to indicate whether a stock is overbought or oversold. BTC Digital stock currently has an RSI of 46.72, indicating neutral conditions.

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BTCT has a 52-week high of $25.40 and a 52-week low of $1.32.