Bit Brother Ltd (NASDAQ: BTB) stock price fell 13.2% as the selling pressure n the stock intensified, driving its shares far below the $1 mark, putting it at risk of breaching the NASDAQ’s listing requirements.
The speciality tea distributor’s stock price had traded as high as $3 in mid-November before announcing a $24.3 million private share placement.
The capital raise diluted existing shareholders leading to the negative investor sentiment that has seen its shares fall below $1.
The company is likely to breach the NASDAQ’s listing requirements in future and might be forced to consolidate its shares if the current downtrend does not reverse course.
Investors looking to buy Bit Brother shares following the latest downtrend may be best served looking elsewhere since the company has been making losses for almost five years now.
However, we cannot rule out another rally higher. Still, the chances of such a rally happening soon are minimal, given that December is typically a seasonally weak period for most stocks.
It appears investors are not sitting around waiting for a pullback, given that over 1.71 million Bit Brother shares had changed hands at writing.
*This is not investment advice. Always do your due diligence before making investment decisions.
Bit Brother stock price.
Bit Brother shares fell 13.23% to trade at $0.57, falling from Friday’s closing price of $0.6569.
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