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Nasdaq-listed company announces plans to buy bitcoin, and its share price plummets 29%

2026-08-28 00:14:10
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Shares of Nasdaq-listed Alpha Modus Holdings (AMD) plunged nearly 29% on August 27 after the artificial intelligence company pushed ahead with a plan to increase the number of bitcoins on its balance sheet by 3170 through bitcoin private placement. Alpha Modus said the deal would add more than $200 million to Bitcoin assets, valued at $71000 each. The company claims to be a vertical AI company focusing on retail engagement, intellectual property and financial technology. Alpha Modus share price is as of press time.

The proposed Bitcoin position far exceeds the company's own. Alpha Modus had an intraday market value of approximately $18.9 million on Thursday, and its shares fell 28.6% to $2.72. Under an agreement signed with non-U.S. investors on August 26, Alpha Modus will issue approximately 51.6 million Class A common shares and an additional 51.6 million warrants in exchange for 3170 bitcoins. CEO William Alessi said the company had considered similar strategies as Bitcoin approached historical highs, but decided to wait. "Today, we have the opportunity to add more than $200 million in bitcoin assets to the balance sheet," he said, adding that management expects the deal to strengthen shareholder equity and help address Nasdaq listing flaws.

Alpha Modus's entry into the corporate Bitcoin trading space comes as many early adopters are struggling to maintain its market premium. According to Financial Times analysis, the total market value of the 50 largest corporate Bitcoin holders has dropped from approximately US$150 billion in July 2025 to US$67 billion in August 2026. The market value of 35 of these companies has shrunk by at least half.

Strategy (Nasdaq: MSTR), the largest corporate Bitcoin holder, holds approximately 840,447 bitcoins, and its risks are evident. The company reported a net loss of $8.22 billion for the second quarter on July 30, mainly due to an unrealized loss of $8.32 billion due to the decline in the price of Bitcoin holdings.

Bitcoin prices are as of press time. As of writing, Bitcoin is trading at approximately US$79,324, up approximately 0.27% for the day and approximately 14% in the past week.

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