Bitcoin miner IPO demands 99.8% of funds from public buyers while handing them just 10% equity

Bitari Inc., a Bitcoin mining host pursuing a planned Bitcoin mining IPO and Nasdaq listing, is asking public buyers to provide nearly all of the consideration shown in its prospectus table while receiving about 10% of the company after the deal.

The company's preliminary S-1 proposes selling 4,285,715 shares at an expected $7 each, producing $30,000,005 of gross proceeds. The table counts that payment as 99.8% of total consideration and gives the new investors 10% of the 43,085,715 shares expected to be outstanding after the base offering.

The 99.8% figure compares consideration paid with shares owned rather than assigning enterprise value.

Existing stockholders would retain 38.8 million shares, or 90% of the post-offering total, after providing $45,000, or 0.2% of the consideration in the same table. On a per-share basis, Bitari calculates that the deal would raise net tangible book value from $0.06 to $0.69 while leaving buyers with immediate dilution of $6.31 on each $7 share.

The ownership gap also preserves control. AI Power X Inc. would hold 85.87% of the outstanding stock after the base offering. Chair Pei Zhao, the beneficial owner of those shares, would be able to exercise the same share of voting power, leaving Bitari a controlled company.

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