Athena Bitcoin Global Registers 473 Million Shares For Resale

Athena Bitcoin Global, a U.S.-based crypto ATM operator with a focus on Latin America, has filed to register 473 million shares for resale by former investors, insiders, and former employees. This move marks a potential exit tied to earlier debt financing, as many of its shares were issued following the conversion of a secured convertible debenture. This type of debt instrument can be converted into equity at a later date.

Athena stated that the registration would enhance its profile as a leading company in the international operation of Bitcoin ATMs and potentially make it easier to attract additional equity capital, which is necessary to fund its expansion. The company did not immediately respond to requests for comment.

The move enables investors to exit their position by selling shares they acquired through a prior debt agreement. While this would provide liquidity, it may also impact shareholder value. Athena gained prominence in 2021 when it became the first operator to deploy Bitcoin ATMs in El Salvador.

Its stock trades under the ticker ABIT on the OTC Pink Market, the lowest tier of U.S. public markets, known for minimal disclosure requirements, limited liquidity, and heightened investment risk. Despite prior plans, Athena has not yet applied for an uplisting to OTCQB or OTCQX, which impose stricter disclosure requirements, per the filing.

Convertible debenture conversions are standard in distressed or early-stage financing, but they may introduce selling pressure, especially in thinly traded securities like Athena’s. The company acknowledged broader headwinds stemming from crypto market turmoil, citing the collapse of platforms such as FTX, Celsius, and Voyager as indirect factors impacting transaction volumes. Although Athena said it suffered no "material direct impact," it noted that these bankruptcies led to declines in crypto prices, trading volume, and user sentiment. The combination of these drivers "could have been a contributing factor" to the decreased volume that it experienced after the bankruptcies.

Athena gained international attention for deploying Bitcoin ATMs during El Salvador’s rollout of BTC as legal tender. However, El Salvador’s broader crypto strategy has faced international scrutiny, with fiscal reforms aimed at easing pressure from the IMF despite President Bukele’s continued defiance.