Alpha Modus Holdings, Inc

Alpha Modus Holdings Inc., a Nasdaq-listed AI company, saw its shares plunge about 29% to $2.72 in morning trading after it advanced a transaction to add 3,170 Bitcoin to its balance sheet, creating a crypto position worth over $200 million at its stated valuation. The proposed Bitcoin assets are more than ten times the company's intraday market capitalization of roughly $18.9 million. Under an agreement signed August 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 Bitcoin, valued at $71,000 per token. Management expects the deal to materially increase shareholder equity and help address a Nasdaq listing deficiency, while CEO William Alessi said the company had previously considered a similar strategy but chose to wait. The transaction's completion depends on closing conditions, accounting treatment, and Nasdaq's compliance determination.