Your thoughts on the US$100 Million Bought Deal?
Thanks
Dave
GLXY has since bumped up the equity raise to $125M, priced at a discount to the last closing price ($14). The stock has reacted negatively, dropping to $13.7 now, close to the $14 equity raise price.
Most bitcoin miners have been raising cash over the past month in preparation for the halving event, which essentially cuts miner margins in half overnight. However, GLXY only has a small portion of its business in bitcoin mining, and so we feel this raise could be for general operational funding purposes or as part of its new 'tokenization wizard' initiative. This new project is in-line with a project Blackrock has recently begun, where they are raising capital 'on-chain' and creating institutional-grade assets in the form of tokens. This is essentially some of the first institutional money on the 'blockchain' that we have seen ever.
The drop in share price is not great, but we feel this is part of fueling future growth rather than a pure need to operate. With the halving coming up, many investors are getting nervous on the implications for crypto assets afterwards, but historically it has been a net positive event.