A zero-revenue public company tried to copy Michael Saylor to avoid delisting, but its stock immediately crashed 25%

Alpha Modus shares fell 25% after the company agreed to issue more than 10 times its existing share count for Bitcoin.

The Nasdaq-listed company said 10 non-US investors would contribute 3,170 BTC in exchange for 51.62 million Class A shares and warrants covering another 51.62 million shares, according to an Aug. 27 SEC filing.

The agreement values the Bitcoin at $71,000 each, implying about $225.1 million of consideration. The transaction has been signed but has not yet closed, meaning the Bitcoin has not been transferred and the new securities have not been issued.

Alpha Modus had about 4.99 million Class A shares outstanding under the agreement’s Aug. 24 capitalization table. Issuing the initial 51.62 million shares would lift that total to roughly 56.61 million and reduce the pre-deal shares to about 8.8% of the enlarged base.

That means the company would issue about 10.35 new shares to the Bitcoin investors for every existing Class A share.

The warrants could add another 51.62 million shares if exercised at $4.36 over their two-year term, creating a second layer of potential dilution. Beneficial-ownership limits, Nasdaq requirements, and any necessary shareholder approvals still apply.