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Bit Digital Lock-Up Agreement Expiring on August 15, 2025
ByAinvest
Friday, Aug 15, 2025 12:49 pm ET1min read
Certain units of Bit Digital, Inc. are subject to a lock-up agreement ending on 15-Aug-2025. The agreement prohibits the company, directors, and executive officers from selling, pledging, or disposing of ordinary shares or convertible securities for 31 days starting from 15-Jul-2025 to 15-Aug-2025, without the prior written consent of the placement agent.
Certain units of Bit Digital, Inc. are subject to a lock-up agreement that will remain in effect until August 15, 2025. The agreement, which began on July 15, 2025, and will last for 31 days, prohibits the company, its directors, and executive officers from selling, pledging, or disposing of ordinary shares or convertible securities without the prior written consent of the placement agent [1].The lock-up period is designed to ensure stability and prevent market manipulation by preventing insiders from selling their shares immediately after the initial public offering (IPO). This is a common practice in the financial industry, particularly for companies seeking to maintain a stable share price post-IPO [2].
During the lock-up period, the company and its executives are restricted from entering into any transactions that transfer the economic consequence of ownership of the ordinary shares. This includes selling shares, granting options, or entering into hedging arrangements without the consent of the placement agent.
The lock-up agreement is a standard practice in the IPO process and is intended to protect the interests of public investors. It helps to stabilize the stock price by preventing a sudden influx of shares into the market, which could potentially drive down the share price.
For investors, this information is important to consider when evaluating the potential for volatility in the stock price of Bit Digital, Inc. during the lock-up period. The restriction on insider selling may lead to a more stable market, but it could also result in a delay in the realization of gains for early investors.
References:
[1] https://www.marketscreener.com/news/certain-units-of-bit-digital-inc-are-subject-to-a-lock-up-agreement-ending-on-15-aug-2025-ce7c51d9d189ff27
[2] https://www.marketscreener.com/news/certain-warrants-of-bit-digital-inc-are-subject-to-a-lock-up-agreement-ending-on-15-aug-2025-ce7c51d9d189ff21
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