BTC Digital Ltd. (NASDAQ:BTCT) saw its stock price skyrocket in premarket trading on Tuesday, June 30, 2026, following the announcement of a significant capital raise. The company secured $7 million in upfront gross proceeds from a private placement, a sum that notably exceeds its current listed market capitalization of approximately $6.50 million.
At 6:45 a.m. EDT, shares were trading at $1.260, representing an 84.5% surge from Monday's closing price of $0.6828. The previous session had seen the stock decline by 7.7%, making the premarket rebound particularly dramatic. Trading volume was exceptionally high, with 20.55 million shares changing hands, compared to an average of just 294,270 shares—a more than 70-fold increase.
The full potential of the financing deal could reach around $28 million if investors exercise all associated warrants at an exercise price of $1.71 per share. The placement, finalized on June 26, involved 6,140,350 common or pre-funded units priced at $1.14 each, with each unit including one ordinary share or pre-funded warrant plus two common warrants. This structure introduces significant potential dilution: the common and pre-funded units represent 65% of the 9.52 million shares outstanding, and full exercise of the common warrants would add another 129%, bringing the total fully converted share count to 27.94 million—nearly three times the end-2025 figure.
CEO Siguang Peng described the funding as a pragmatic growth path, emphasizing a step-by-step approach. The company plans to use the proceeds for the initial phase of an 8-megawatt AI computing center in Georgia. According to the company statement, part of that first-phase capacity could become operational within approximately six months, with revenue generation beginning once an anchor tenant is secured. Notably, no such tenant has been named yet.
The financing comes at a critical time for BTC Digital, which held only $350,000 in cash as of December 31, 2025, while carrying $2.17 million in short-term loans. The company reported $14.04 million in revenue for 2025 but posted a net loss of $9.06 million. At the end of 2025, BTC Digital operated 2,996 crypto-mining rigs with a combined hash rate of 390.1 PH/s, producing 14.127 bitcoin along with Dogecoin and Litecoin, generating $1.8 million in mining revenue.
Investors are weighing the substantial dilution risk against the potential upside from the AI data center project. The deal's size relative to the company's equity is striking: the upfront $7 million represents 108% of the market cap, while the potential $28 million total could be 431% of the current valuation. This dynamic has driven the stock's volatility.
In the broader market, Bitcoin was trading at $59,269, down 1.1%, indicating that BTC Digital's move was primarily driven by company-specific news rather than the cryptocurrency's performance. Compared to larger crypto-computing peers, BTC Digital's market cap remains modest even after the premarket surge. For context, Bit Digital Inc. (NASDAQ:BTBT) has a market cap of $595.9 million, Canaan Inc. (NASDAQ:CAN) is valued at $1.05 billion, BitFuFu Inc. (NASDAQ:FUFU) at $41.9 million, and BTCS Inc. (NASDAQ:BTCS) at $52.6 million.
The market's reaction underscores the high-stakes nature of BTC Digital's pivot toward AI infrastructure, with investors betting that the Georgia facility can attract tenants and generate revenue before dilution from warrant exercises weighs on the stock. The coming months will be critical as the company works to convert its financing into operational success.
