MFI Stock Doubles On BTC Pivot Amid Pressure On Digital Asset Treasury Valuations Amid Crypto Sell-Off

• The private placement is expected to involve the sale of 50 million class A ordinary shares and pre-funded warrants at $10 per share. 
• The announcement comes as other digital asset treasuries are adjusting their holdings amid the broader crypto sell-off.
• MFI said it will provide additional updates on treasury activities in the near term.

Shares of MF International (MFI) doubled in value by midday trade on Friday after the company announced a $500 million private placement to facilitate its pivot to a Bitcoin (BTC)-backed digital asset strategy. 

However, the stock pared most of its gains later in the day and was up by about 11% at the time of writing. On Stocktwits, retail sentiment surged to ‘extremely bullish’ from ‘neutral,’ while chatter climbed to ‘extremely high’ from ‘low’ levels.

The private placement (PIPE) is expected to involve the sale of 50 million class A ordinary shares and pre-funded warrants at $10 per share. MFI said it will provide additional updates on treasury activities in the near term.

DAT Scrutiny On The Rise

The announcement comes at a time when several digital asset treasury companies (DATs) are adjusting their portfolios and repurchasing shares amid Bitcoin’s decline to $80,000 from highs above $126,000 in October. BTC’s price was trading at $83,500 at the time of writing, down 3.9% in the last 24 hours.

FG Nexus (FGNX) said Thursday that it began buying back stock under its existing repurchase program. To fund the effort, the company borrowed roughly $10 million and sold 10,922 ETH, using the proceeds to accelerate buybacks.

ETHZilla (ETHZ), another firm that holds Ethereum as a core asset, sold about $40 million in tokens last month to fund its own repurchases. Sharplink (SBET) launched a buyback program in September instead of expanding its ETH holdings, a decision that implied reduced accumulation or potential sales. 

Strategy (MSTR), also known as the Bitcoin proxy, was among the stocks that came under pressure amid the crypto market sell-off. JPMorgan said on Thursday that Strategy (MSTR) could face exclusion from major equity indices when the January MSCI decision is finalized. The bank noted that outflows could reach $2.8 billion if Strategy is removed from MSCI indices, and $8.8 billion if other index providers follow suit.

MSTR’s stock fell more than 4% in afternoon trade. On Stocktwits, retail sentiment around the company trended in ‘bullish’ territory, accompanied by chatter at ‘extremely high’ levels.

Read also: Bitcoin ETFs Hit Record Monthly Outflows In November – Average Investor Now in the Red, Says Analyst

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