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Why Bitcoin-Related Stock BTC Digital Is Getting Hammered

Benzinga·12/06/2024 17:25:46
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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.

Read Also: Private Credit Tokenization Hits $650 Million Monthly, Setting A New Benchmark

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.

For analysis tools, charting data and access to exclusive stock news, check out Benzinga PRO. Try it for free.

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

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