European Bitcoin treasury firm Capital B raised more than $17 million from investors including Adam Back as it works toward a goal of holding 1% of all BTC▼$62,469.00 by 2033.
French Bitcoin treasury firm Capital B raised €15.2 million, or about $17.8 million, from institutional investors to buy more Bitcoin and expand its corporate treasury strategy.
The Paris-listed firm said in a May 11 press release that the private placement was subscribed by global institutional investors, including Bitcoin developer Adam Back and TOBAM, a Paris-based, quantitative asset crypto management firm.
The deal includes more than 23 million new shares. Capital B is raising fresh equity-linked capital to add more BTC to its balance sheet. Currently, the firm is trying to operate more like a Bitcoin treasury firm, where part of the investment case depends on how much BTC it can hold per share over time.
- Each share comes with four extra rights that allow investors to buy more Capital B shares later at fixed prices.
- The subscription price was €0.66 per unit, bringing the total gross raise to €15.2 million.
Those extra share-buying rights can later be used at €0.86, €1.12 and €1.46 per share, depending on the group, meaning investors get shares now and a chance to buy more shares later if the stock price rises enough.
Capital B said its strategy is focused on “increasing the number of bitcoin per share” on a fully diluted basis over time.
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Capital B’s Long-Term Strategy
On its website, Capital B shows a nearer-term target of 15,000 BTC by the end of 2027, while its longer-term ambition is to accumulate 1% of Bitcoin’s total supply by 2033.
- That would equal about 210,000 BTC, based on Bitcoin’s 21 million maximum supply, though the practical share of circulating BTC could be higher because some BTC is widely believed to be permanently lost.
In today’s Bitcoin treasury market, that would put Capital B well ahead of every listed public company except Strategy, which holds over 818,000 BTC, worth about $66 billion at the current Bitcoin price.
The Extra Capital Isn’t Guaranteed
The deal still depends on closing, and the extra capital isn’t guaranteed. Capital B said the transaction is expected to close on May 13 at the earliest, though it could be delayed by a few days for technical reasons.
- The firm would get the first €15.2 million from the share sale. However, it would only receive the larger follow-on amount if investors later use their rights to buy more shares.
Capital B said the private placement, together with ongoing operations, could allow it to buy 182 additional BTC, bringing its potential total holdings to 3,125 BTC.
Existing Shareholders Could Be Diluted
There’s also a larger possible capital raise attached to the warrants. If all warrants from this transaction are exercised, Capital B would receive another €99.1 million, or about $116.1 million. But that would also dilute existing shareholders.
- A shareholder who owned 1% before the deal and didn’t participate would fall to 0.92% after the new shares are issued, or 0.71% if all related warrants are exercised.
- On a diluted basis, that same 1% stake would fall to 0.66% after the share issuance and 0.54% if all warrants are exercised, according to the firm.
Capital B said the warrants won’t be admitted to trading on any market. The new shares, however, are expected to trade on Euronext Growth Paris under the same listing line as the firm’s existing shares.
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