Shares in Blue Star Capital PLC (AIM:BLU) fell 20% on Thursday morning as investors reacted to news of a fresh equity placing priced nearly 50% below the previous day’s closing price.
The AIM-listed investment group, which focuses on blockchain and decentralised finance, announced it had raised £250,000 by issuing just over 2.27 million new shares at 11p each.
That marks a hefty discount to Wednesday’s close of 21.25p, though it still represents a sharp premium to a January fundraise, when shares were placed at just 2p.
The funding comes after a sharp rally in Blue Star’s share price (up more than 240% in under two weeks), driven by excitement around its 28% stake in SatoshiPay.
The investee company recently reported a milestone for its decentralised payments platform, Vortex, with $1 million in transaction volume since launch.
Blue Star said it would use the proceeds to further support SatoshiPay’s growth and strengthen its own balance sheet.
The stock fell 4.25p to 17p.