Athena Bitcoin Clears Way For Early Investors to Sell Shares

Athena Bitcoin Global, a Crypto-ATM operator based in the US with a focus on Latin America, has submitted an application to register hundreds of millions of shares for resale by former investors, which marks a potential exit that is linked to previous debt financing.

The S-1 submit On Tuesday, it appeared on the SEC archives, which described how Athena would register 473 million ordinary shares for resale with more than two dozen shareholders, including early financiers, company insiders and former employees.

Many of his shares were issued after the conversion of a secure convertible bond, a type of debt instrument that can be converted into equity at a later time.

Athena said that the registration would increase its profile “as a leading company in the international operation of Bitcoin money machines” and it makes it possible to “make it easier to withdraw extra stock capital” that it needs to finance its expansion.

The operator did not respond immediately Decrypts Request for comments.

The relocation enables investors to leave their position by selling shares they have obtained through an earlier debt agreement. Although it would offer liquidity, it can also influence the shareholder value.

Athena became known in 2021 when it became the first operator to use Bitcoin money machines in El Salvador.

The shares act under the Ticker Abit on the OTC Pink Market, the lowest layer of the American public markets, known for minimal disclosure requirements, limited liquidity and increased investment risks.

Athena said it did not apply for an uplisting to OTCQB or OTCQX, who imposes stricter disclosure requirements according to the submission.

Although convertible bond conversions are standard in distressed or early stage financing, they can introduce sales pressure, especially in thin -traded effects such as those of Athena.

To date, the daily volume has fluctuated wild as low as $ 160 to $ 112,280, with an average of 65 days of $ 10,367, according to facts from Yahoo Finance. Despite the volatility, the shares were consistently traded below $ 0.10 and closed on Tuesday at $ 0.0394.

Wider headwind and El Salvador pullbacks

In his submission, the company acknowledged wider headwind as a result of the unrest on the Crypto market, with reference to the collapse of platforms such as FTX, Celsius and Voyager as indirect factors that influence transaction volumes.

FTX, Celsius and Voyager were hit hard during the previous crypto -hog market, which took place more than two years ago.

Although Athena said it had no “material direct impact”, it noted that these bankruptcies led to falls in crypto prices, trade volume and user sentiment.

The combination of these drivers “could have been a contributing factor” to the reduced volume that it experienced after the bankruptcies.

Athena received international attention to the use of Bitcoin money machines during the rollout of BTC of El Salvador as a legal tender, although the wider crypto strategy of El Salvador has had to deal with international control, with tax reforms aimed at illuminating the pressure of the IMF despite President’s continuous challenge.

Edited by Sebastian Sinclair