Alpha Modus Holdings Inc. (NASDAQ:AMOD) shares jumped 60.68% to $1.88 in after-hours trading on Thursday after the company said it closed a bitcoin-funded private placement and regained Nasdaq listing compliance.

According to a Securities and Exchange Commission filing, the North Carolina-based vertical artificial intelligence and intellectual property company closed its private investment in public equity (PIPE) transaction on Thursday.

Bitcoin Deal Brings Balance Sheet Boost

Non-U.S. investors delivered 3,170 Bitcoin (CRYPTO: BTC) to AMOD Tech Pte. Ltd., a newly formed, wholly owned Singapore subsidiary. The filing valued the holding at more than $250 million, based on a reference price of about $83,612.20 per coin on Thursday.

In return, Alpha Modus issued 51.62 million Class A shares. Investors also received warrants, which let holders buy stock at a fixed price, to purchase an additional 51.62 million shares at $4.36 each.

Nasdaq Delisting Threat Eases

The deal also helps resolve a listing problem. Nasdaq notified Alpha Modus on April 6 that it no longer met its minimum net income, market value of listed securities or stockholders’ equity requirements.

The company submitted a plan and received an extension to regain compliance. According to the filing, the bitcoin transaction now puts its stockholders’ equity “well in excess of $200 million.”

That is far above the $2.5 million minimum under Nasdaq listing rule.

What Investors Should Watch

Still, Nasdaq will keep monitoring compliance. If the company cannot show it at its next periodic report, it may face delisting, the filing said. Delisting could reduce liquidity and limit the company’s ability to raise equity.

Benzinga’s Take: The new shares and warrants also add dilution, meaning existing shareholders own a smaller slice of the company.

Trading Metrics, Technical Analysis

Alpha Modus Holdings has a market capitalization of $5.77 million, a 52-week high of $51.60 and a 52-week low of $1.12. The company has approximately 4.99 million shares outstanding.

The Relative Strength Index (RSI) of AMOD stands at 21.35.

The small-cap stock has declined 97.39% over the past 12 months.

AMOD is currently trading near its 52-week low.

Price Action: The stock closed the regular session on Thursday at $1.17, down 24.52%, according to Benzinga Pro data.

Benzinga’s Edge Stock Rankings indicate Alpha Modus Holdings stock has a negative price trend across all time frames.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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