Alpha Modus Stock Crashes 25% After Bitcoin Deal Announcement
Nasdaq-listed Alpha Modus has announced a plan to issue more than 10 times its existing share count for Bitcoin, in an attempt to repair its balance sheet and avoid delisting. The company's stock immediately crashed 25% after the announcement.
The deal values the contributed Bitcoin at $71,000 each, implying about $225.1 million of consideration. Alpha Modus will issue 51.62 million Class A shares and warrants covering another 51.62 million shares in exchange for the 3,170 BTC from 10 non-US investors.
The agreement would lift the company's total share count to roughly 56.61 million, with existing shareholders owning about 8.8% of the enlarged base. The warrants could add another 51.62 million shares if exercised at $4.36 over their two-year term, creating a second layer of potential dilution.
The deal is part of Alpha Modus's plan to address its Nasdaq deficiency, which was notified in April. The company reported no revenue for the first half of 2026 and posted a $6.2 million loss over the six-month period. Management expects the contributed Bitcoin to strengthen stockholders' equity.