Alpha Modus shares fell about 25% to $2.84 after the Nasdaq-listed company agreed to acquire 3,170 BTC from 10 non-US investors in exchange for 51.62 million Class A shares and warrants covering another 51.62 million shares. The Aug. 27 SEC filing values the Bitcoin at $71,000 each, or about $225.1 million, but the signed transaction has not closed and neither the Bitcoin nor the securities have yet been transferred or issued. Alpha Modus had about 4.99 million Class A shares outstanding under an Aug. 24 capitalization table, meaning the initial issuance would increase the total to roughly 56.61 million shares and leave existing holders with about 8.8% of the enlarged base. The warrants, exercisable at $4.36 for two years, could create a further layer of dilution. Management says the contributed Bitcoin could strengthen stockholders’ equity and help address Nasdaq deficiencies, but the transaction would provide an asset rather than cash and would not automatically resolve the company’s near-term liquidity needs or listing problems. Alpha Modus reported $2 million in cash, a $6.1 million stockholders’ deficit, a $6.3 million working-capital deficit, no revenue for the quarter or first half of 2026, and a $6.2 million six-month loss. Nasdaq notified the company in April that it failed all three alternative Capital Market standards covering net income, market value of listed securities or stockholders’ equity, and the company later submitted a compliance plan. The move comes as investor enthusiasm for corporate Bitcoin-treasury strategies has weakened: the combined market capitalization of the 50 largest publicly traded Bitcoin holders fell to about $67 billion in August from roughly $150 billion in July 2025, according to the Financial Times. Chief Executive William Alessi said the company had previously considered the strategy when Bitcoin was near record highs but decided the timing was not optimal.