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(NYSE American: GPUS) fell more than 17% on August 14, touching as low as $0.0930 per share, after the Bitcoin mining company disclosed it had sold approximately 685 Bitcoin for roughly $43 million and announced a 1-for-5 reverse stock split.
Management's case is that the Bitcoin sale is a capital reallocation aimed at the Michigan data center and debt management.
The risk is that the market read both announcements as distress signals from a company under pressure on multiple fronts at once.
The Bitcoin proceeds are earmarked for Michigan data center development and expansion, debt management, equity and capital structure work, and other corporate initiatives, according to the company.
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