Nasdaq-listed stock plunges 29% after announcing plan to buy Bitcoin

Nasdaq-listed stock plunges 29% after announcing plan to buy Bitcoin

Arjun Parashar

Thu, August 27, 2026 at 8:12 PM GMT+3 2 min read

• BTC-USD +2.90%

Nasdaq-listed Alpha Modus Holdings (AMOD) shares plunged nearly 29% on Aug. 27 after the artificial intelligence company advanced plans to add 3,170 Bitcoin to its balance sheet through a Bitcoin-funded private placement.

Alpha Modus said the transaction would add more than $200 million in Bitcoin assets, valuing the cryptocurrency at $71,000 per coin.

The company describes itself as a vertical AI business focused on retail engagement, intellectual property and financial technology.

The scale of the proposed Bitcoin position dwarfs the company itself. Alpha Modus had an intraday market capitalization of about $18.9 million on Thursday as its shares fell to $2.72, down 28.6%.

Under an agreement signed Aug. 26 with non-U.S. investors, Alpha Modus would issue about 51.6 million Class A shares and warrants for another 51.6 million shares in exchange for the 3,170 BTC.

CEO William Alessi said the company had considered a similar strategy when Bitcoin was near record highs but decided to wait.

"Today, we have an opportunity to add more than $200 million in Bitcoin assets to our balance sheet," he said, adding that management expects the deal to strengthen shareholder equity and help address a Nasdaq listing deficiency.

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Alpha Modus is entering the corporate Bitcoin trade as many earlier adopters struggle to hold onto their market premiums.

The combined market capitalization of the 50 largest corporate Bitcoin holders has fallen from about $150 billion in July 2025 to $67 billion in August 2026, according to Financial Times analysis.

Thirty-five of the 50 have lost at least half their market value.

Strategy (Nasdaq: MSTR)), the largest corporate Bitcoin holder with roughly 840,447 BTC, illustrates the risks.

The company reported an $8.22 billion net loss for the second quarter on July 30, driven largely by an $8.32 billion unrealized loss on its Bitcoin holdings as prices declined.

Bitcoin was trading around $79,324 at the time of writing, up about 0.27% on the day and roughly 14% over the previous week.

This story was originally published by TheStreet on Aug 27, 2026, where it first appeared in the MARKETS section. Add TheStreet as a Preferred Source by clicking here.