BitMine Immersion Technologies Shares Slide After Entering Security Purchase Agreements

By Connor Hart

Shares of BitMine Immersion Technologies tumbled after the company entered several security purchase agreements.

The stock fell 19%, to $109.75, in premarket trading Monday. Through Thursday's close, shares have surged in the past year and were trading at $8.80 apiece last July.

The technology company, which focuses on Bitcoin mining using immersion technology, said after Thursday's closing bell that it entered agreements with certain accredited investors to sell roughly 36.3 million shares of its common stock for $4.50 apiece in a private placement offering.

The agreements also included the sale of pre-funded warrants that will allow holders to buy about 11 million shares of common stock.

Separately, BitMine entered agreements with certain accredited investors to sell about 8.8 million shares of its common stock for $4.50 apiece in a private placement, in which purchasers will tender certain cryptocurrencies for the common stock.

The company plans to use net proceeds from the offerings primarily to acquire the native cryptocurrency of the Ethereum blockchain, commonly referred to as ETH, and contribute the ETH to the company's treasury operations.

Write to Connor Hart at connor.hart@wsj.com