Rows of Bitcoin mining computers inside an industrial facility

Bitari’s $30 Million Bitcoin Mining IPO Gives Public Buyers 10% of the Company

By Isaac • August 23, 2026 3:31 pm • Comments

Bitari is asking public investors to supply almost all of the money shown in its proposed Bitcoin mining IPO while receiving just 10% of the company after the offering.

That is the number that deserves attention before anyone gets distracted by Bitcoin’s rebound or the promise of more mining infrastructure.

Bitari’s preliminary S-1 filed with the Securities and Exchange Commission proposes selling 4,285,715 shares at an expected price of $7 each. If every share sells at that price, new investors would contribute $30,000,005.

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Those buyers would own 10% of the 43,085,715 shares expected to be outstanding after the base offering.

Existing shareholders, meanwhile, would keep 38.8 million shares, or 90% of the company. The prospectus table lists $45,000 of consideration from those holders against the roughly $30 million expected from public buyers.

That is how the filing arrives at the striking 99.8% figure for new investors’ share of total consideration. It does not mean public buyers are purchasing 99.8% of Bitari or that the company assigns only $45,000 of value to everything built before the IPO.

It compares the consideration shown in the table with the ownership each side would hold after the deal. The distinction matters, but it does not make the imbalance disappear.

CryptoSlate reports that the structure would leave IPO buyers with immediate dilution of $6.31 on each $7 share. Bitari calculates that net tangible book value would rise from $0.06 per share before the offering to $0.69 afterward.

In plain English, investors would be paying $7 for stock backed by less than $1 per share of pro forma net tangible book value.

The same report places that dilution beside Bitari’s planned use of proceeds. About 40% of the estimated net raise would go to acquisitions and investments even though the company has not identified a target or entered preliminary negotiations.

It also notes that the proposed Nasdaq listing remains contingent. Bitari has reserved the symbol BIAI, but the exchange had not approved the application and the preliminary prospectus does not provide a firm closing date.

The ownership split also preserves control in a way prospective buyers should understand.

AI Power X would own 85.87% of Bitari after the base offering. Chair Pei Zhao is identified as the beneficial owner of those shares.

That would give the controlling shareholder the same 85.87% share of voting power. Bitari therefore expects to qualify as a controlled company.

Public investors could participate in the stock’s upside, but they would have little practical ability to change the company’s direction through ordinary shareholder voting.

The planned use of proceeds makes that control more consequential.

Bitari estimates net proceeds of about $26.95 million before any over-allotment. The filing allocates 40% of that money, roughly $10.78 million, to strategic acquisitions and investments even though the company says it has not identified a target, begun preliminary negotiations, or signed an acquisition agreement.

Another 30% is earmarked for global market expansion and brand development. Bitari assigns 15% to new mining operations and infrastructure, 10% to research and development, and 5% to general corporate purposes and working capital.

That means only 15 cents of each planned net-proceeds dollar is specifically committed to new mining operations and infrastructure. A much larger share would remain available for acquisitions and expansion decisions controlled by the existing majority owner.

Bitari’s recent operating results add another reason to examine the offering on its own merits rather than treating it as a simple proxy for Bitcoin.

For the nine months ended April 30, revenue slipped to $8.37 million from $8.59 million in the comparable period. Net income fell to $183,905 from $990,960.

Operating activities used $689,760 of cash during the latest nine-month period after generating $1.37 million a year earlier. The company remains profitable on the reported bottom line, but its earnings and operating cash generation weakened before the proposed public raise.

The second report above summarizes the offering terms in Chinese: roughly 4.286 million shares at $7, a planned $30 million raise, an application for the Nasdaq Global Market under the symbol BIAI, and an implied value of about $302 million at the proposed price.

Bitcoin’s market backdrop is undeniably stronger than it was a week ago. The live market context attached to the CryptoSlate report placed Bitcoin near $77,370, up more than 22% over seven days, with a market capitalization around $1.55 trillion and the No. 1 crypto ranking.

That can help mining economics and investor appetite. It cannot erase dilution, voting control, operating cash flow, or the terms written into an equity prospectus.

Bitari’s deal is not complete. The company has reserved BIAI as its proposed ticker and applied to list on the Nasdaq Global Market, but the filing says Nasdaq had not yet approved the application.

The offering has no firm closing or trading date, and final listing approval is a condition of completion. Investors are evaluating a proposal, not a guaranteed Nasdaq debut.

The cleanest way to view the IPO is as a controlled-company capital raise tied to Bitcoin mining, not as Bitcoin ownership in stock form.

If the deal proceeds as described, public buyers would provide about $30 million, receive roughly one-tenth of Bitari, accept immediate accounting dilution, and fund a broad acquisition pool controlled by the existing majority owner.

Bitcoin’s rally may put more eyes on the offering. The prospectus math should decide whether those eyes turn into bids.

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