Bitcoin miner IPO demands 99.8% of funds from public buyers while handing them just 10% equity

[Bitari Bitcoin Mining IPO Demands Near‑Total Consideration Yet Grants Investors Only 10% Of Shares]

Bitari Inc., a Bitcoin mining host pursuing a planned Bitcoin mining IPO and Nasdaq listing, is asking public buyers to provide nearly all of the consideration shown in its prospectus table while receiving about 10% of the company after the deal.

The company’s preliminary S‑1 proposes selling 4,285,715 shares at an expected $7 each, producing $30,000,005 of gross proceeds. The table counts that payment as 99.8% of total consideration and gives the new investors 10% of the 43,085,715 shares expected to be outstanding after the base offering.

The 99.8% figure compares consideration paid with shares owned rather than assigning enterprise value.

Existing stockholders would retain 38.8 million shares, or 90% of the post‑offering total, after providing $45,000, or 0.2 % of the consideration in the same table. On a per‑share basis, Bitari calculates that the deal would raise net tangible book value from $0.06 to $0.69 while leaving buyers with immediate dilution of $6.31 on each $7 share.

The ownership gap also preserves control. AI Power X Inc. would hold 85.87 % of the outstanding stock after the base offering. Chair Pei Zhao, the beneficial owner of those shares, would be able to exercise the same share of voting power, leaving Bitari a controlled company.

The proposed use of the new money adds a second layer to the structure. Bitari estimates about $26.95 million of net proceeds before any over‑allotment and plans to direct 40 %, about $10.78 million, to strategic acquisitions and investments. The company has yet to identify a target, enter preliminary negotiations or sign an acquisition agreement.

Another 30 % is earmarked for global market expansion and brand development, with 15 % allocated for new mining operations and infrastructure, 10 % for research and development, and 5 % for general corporate purposes and working capital.

The image showing the offer details remains intact:

Source link