Key Takeaways
Capital B, a European Bitcoin treasury firm, announced a €15.2 million ($16.5 million) capital raise to purchase more Bitcoin for its corporate balance sheet, deepening its ties with key industry figures.
The company stated the move is a key step in its "Bitcoin Treasury Company strategy, focused on increasing the number of bitcoin per share on a fully diluted basis over time," according to its May 11 press release. The net proceeds of €14.4 million are designated to acquire approximately 182 additional BTC.
The Puteaux, France-based company issued 23,038,844 shares with four share subscription warrants attached to each (ABSA), priced at €0.66 per ABSA. The placement was subscribed by global institutional investors, including strategic backers Adam Back, CEO of Blockstream, and French asset manager TOBAM. The issue price represented a 1.51 percent premium to the stock's closing price on May 8.
This transaction could potentially increase Capital B's Bitcoin holdings to 3,125 BTC. The raise comes just a week after the firm secured €1.1 million directly from Adam Back through a warrant issuance on May 4, a move that caused the company's stock (ALCPB) to jump over 6.5 percent.
The deal is structured to provide significant future funding. Each ABSA includes two "Warrant 2026-03" with an exercise price of €0.86, one "Warrant 2026-04" at €1.12, and one "Warrant 2026-05" at €1.46. If all 92.1 million warrants issued in the transaction are eventually exercised, it would result in an additional capital increase of €99.1 million for the company.
Following the private placement, Adam Back's stake will be 13.43 percent on an ordinary basis, while TOBAM's will increase to 4.20 percent. If all new warrants are exercised, Back's and TOBAM's stakes would adjust to 12.90 percent and 7.34 percent, respectively, on an ordinary basis.
The €15.2 million private placement significantly scales up Capital B's recent accumulation efforts. The company's strategy involves using capital markets to fund its long-term Bitcoin reserve, establishing it as one of Europe's first publicly traded companies to adopt this model. The consistent backing from investors like Adam Back and TOBAM shows growing confidence in using Bitcoin as a primary treasury reserve asset.
The company has the option to trigger an accelerated exercise period for the warrants if its stock price exceeds 130 percent of the warrant's exercise price for 20 consecutive trading days, potentially speeding up its ability to acquire more Bitcoin.
This article is for informational purposes only and does not constitute investment advice.
