A zero-revenue public company tried to copy Michael Saylor to avoid delisting, but its stock immediately crashed 25%

Alpha Modus shares fell 25% after the company agreed to subject greater than 10 instances its current share depend for Bitcoin.

The Nasdaq-listed company stated 10 non-US traders would contribute 3,170 BTC in change for 51.62 million Class A shares and warrants protecting one other 51.62 million shares, in accordance 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 but 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 below the settlement’s Aug. 24 capitalization desk. Issuing the preliminary 51.62 million shares would carry that complete to roughly 56.61 million and cut back the pre-deal shares to about 8.8% of the enlarged base.

That means the company would subject about 10.35 new shares to the Bitcoin traders for each current 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. Beneficial-ownership limits, Nasdaq necessities, and any needed shareholder approvals nonetheless apply.

Investors 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 quick goal for Alpha Modus: repairing a stability sheet that has put its Nasdaq itemizing in danger.

Nasdaq notified the company in April that it failed to fulfill any of three different Capital Market requirements protecting 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 company 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 means to proceed as a going concern and estimated that the company wanted not less than one other $2.5 million to preserve its progress plan.

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

The deal would additionally ship Bitcoin relatively than money, that means it could not mechanically clear up 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 shifting deeper into Bitcoin simply because the corporate treasury trade is losing favor with investors.

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 accordance to the Financial Times.

The mannequin was popularized by Michael Saylor’s Strategy, whose aggressive Bitcoin purchases inspired different public firms to increase debt and fairness to accumulate the asset.

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

As a outcome, some firms have begun selling their BTC holdings or refocusing on their core businesses as leveraged treasury methods amplified the draw back.

Alpha Modus is taking the other method. Chief Executive William Alessi stated the company had beforehand thought of a Bitcoin technique when costs have been close to document highs but selected not to proceed.

He stated:

“We thought of pursuing this technique when Bitcoin was close to document 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.

However, early indications present that traders have been much less satisfied thus far, as proven by the steep decline within the agency’s stock following the transfer’s announcement.

The submit A zero-revenue public company tried to copy Michael Saylor to avoid delisting, but its stock immediately crashed 25% appeared first on CryptoSlate.