AMOD Stock Skyrockets 61% After Bitcoin-Funded Private Placement

Alpha Modus Holdings Inc. (NASDAQ:AMOD) shares experienced a significant boost in after-hours trading on Thursday, surging 60.68% to $1.88. The company's stock price increased due to its announcement of closing a bitcoin-funded private placement and regaining Nasdaq listing compliance.

The deal involved non-U.S. investors delivering 3,170 Bitcoin (BTC) to AMOD Tech Pte. Ltd., a newly formed subsidiary in Singapore. The holding was valued at over $250 million based on the reference price of approximately $83,612.20 per coin on Thursday.

In return, Alpha Modus issued 51.62 million Class A shares and granted warrants for an additional 51.62 million shares to be purchased at $4.36 each. This transaction helped resolve a listing problem that had arisen after Nasdaq notified the company in April that it no longer met its minimum net income or market value requirements.

The bitcoin-funded private placement now puts Alpha Modus' stockholders' equity 'well in excess of $200 million,' far above the $2.5 million minimum required by Nasdaq listing rules. However, Nasdaq will continue to monitor compliance, and if the company fails to meet the requirement at its next periodic report, it may face delisting.

Delisting could negatively impact liquidity and limit Alpha Modus' ability to raise equity. The new shares and warrants also add dilution, meaning existing shareholders now own a smaller share of the company.