Alpha Modus shares jump 60.68% after bitcoin-funded share sale

Alpha Modus Holdings shares rose 60.68% to $1.88 in after-hours trading Thursday after the company closed a bitcoin-funded private investment in public equity transaction. Non-U.S. investors delivered 3,170 bitcoin to AMOD Tech Pte. Ltd., a newly formed, wholly owned Singapore subsidiary. A Securities and Exchange Commission filing valued the bitcoin holding at more than $250 million, using a Thursday reference price of about $83,612.20 per coin. Alpha Modus issued 51.62 million Class A shares in return. The investors also received warrants to buy another 51.62 million shares at $4.36 each. Nasdaq notified Alpha Modus on April 6 that the company no longer met its minimum net income, market value of listed securities or stockholders' equity requirements. Alpha Modus submitted a compliance plan and received an extension. The filing said the bitcoin transaction raised stockholders' equity to well over $200 million, above Nasdaq's $2.5 million minimum. Nasdaq will continue monitoring compliance. The filing said Alpha Modus could face delisting if it cannot demonstrate compliance in its next periodic report. Delisting could reduce the stock's liquidity and limit the company's ability to raise equity. The new shares and warrants dilute existing shareholders' ownership. Alpha Modus shares closed Thursday's regular session at $1.17, down 24.52%, according to Benzinga Pro data. The stock has fallen 97.39% over the past 12 months. Its Relative Strength Index stood at 21.35.