Bitfarms Ltd T.BITF

Close to 21% Dilution Effect of the Financing

[krightg9bo]

BITF would have probably hit around 2.80 without the announcement of yesterday instead of going down to 2.35 .  But for increasing capacity ASAP and face growth challenges, there were not many options other than that financing.  Upward movement will certainly resume soon after closure tomorrow.  GLTA

[krightg9bo]

If I may attempt a prediction, if BTC reaches its peak of 34K USD by tomorrow at the closing of the announced financing, BITF will move to 4.00$.  If the momentum of BTC keeps going as I think it will, we might be at 8.00 USD by the end of this week.  GLTA

[virgintrader99]

GOOD CALL

[virgintrader99]

Good call body

[E17]

Whilst I understand what you're saying (you think the share price would be 20% higher if they hadn't announced the financing), the private placement did not result in any material dilution to shareholders, being placed at a 10% discount to market on a 10% capital raise resulted in around 1% dilution.  We have roughly 10% more shares in issue, however shareholders now have $20m

[krightg9bo]

You are right E17, but the market reacted like if it was fully deluted if the 8.9M shares and 8.9M warrants were exercised, which would have increased the number of shares by 21% (2.80 before the announcement and droped to 2.31 after)  This is going to be corrected with time and you were right to acquire some more.

[virgintrader99]

Look at dmgi pp almost 50% off from current value a month ago and look at today