In a significant move to bolster its Bitcoin treasury, Capital B, also known as The Blockchain Group, has successfully raised €3 million in fresh capital. The Paris-listed firm, which positions itself as Europe’s first Bitcoin Treasury Company, is set to accelerate its strategy of accumulating Bitcoin as a core balance sheet asset.
A Strategic Capital Raise
The financing round includes €2 million from share subscription warrants subscribed by TOBAM and €1 million from UTXO Management. The transaction involves the issuance of 27.39 million warrants, each priced at €0.11 and exercisable into ordinary shares. This capital injection is expected to enable the company to acquire approximately 36 additional bitcoins, bringing its total holdings to around 2,880 BTC.
Enhanced Investor Flexibility
Capital B has also made strategic adjustments to the conversion prices of three tranches of convertible bonds subscribed by TOBAM. The A-03 tranche’s conversion price has been reduced from €6.24 to €3.12 per share, the A-04 tranche from €5.174 to €2.59, and the A-05 tranche from €3.656 to €1.83. These changes aim to enhance flexibility for investors and support the execution of the company’s treasury strategy.
Incentives for Bondholders
The revised terms introduce additional incentives for bondholders. Upon conversion, each bond will now grant a share subscription warrant with a two-year maturity. Additionally, conversion conditions tied to share price thresholds have been removed for the A-03 and A-04 tranches, allowing holders to convert at any time.
Bitcoin Treasury Model
Capital B’s model as a Bitcoin Treasury Company is centered on accumulating Bitcoin as a core asset while growing Bitcoin per fully diluted share. The exercise price of the newly issued warrants will be set at the higher of €1.01 or a metric tied to the company’s Bitcoin holdings, referred to as “mNAV 1.1,” reflecting a 10% premium to the per-share value of the company’s Bitcoin reserves.
Broadening the Bitcoin Treasury Trend
This move by Capital B reflects a broader trend of companies adopting Bitcoin-focused treasury strategies. Recently, Strategy, led by Michael Saylor, disclosed the purchase of 22,337 additional bitcoins for approximately $1.57 billion, increasing the company’s total holdings to 761,068 BTC, with a combined market value of roughly $50 billion.
Conclusion
Capital B’s capital raise and strategic adjustments position the company to strengthen its Bitcoin treasury and solidify its role in the European market. As more companies explore Bitcoin as a strategic asset, the landscape of corporate treasury management continues to evolve, driven by the potential for significant long-term value and financial resilience.
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