Image Credit: Reddit
Key Takeaways
- Capital B raised $8.8 million from Adam Back to fund a planned 376 BTC purchase, part of a larger 21 million euro round.
- The purchase would bring holdings to 3,521 BTC, making Capital B Europe’s second-largest corporate Bitcoin holder.
- The warrant-heavy raise structure could dilute existing shareholders to as little as 0.65% of their prior stake.
Cryptocurrency treasury firm Capital B raised 7.6 million euros, worth about $8.8 million, from Bitcoin developer and investor Adam Back to expand its Bitcoin holdings. The Euronext Growth Paris-listed company plans to use the proceeds to buy up to 376 Bitcoin, which would take its total treasury to 3,521 BTC.
Share and Warrant Structure Behind the Raise
Capital B issued 13,181,030 shares priced at 58 euro cents each, according to a company filing, with each share bundled with four five-year warrants giving investors the right to purchase additional shares later.
If every warrant tied to this issuance is exercised, the company would issue another 144.9 million shares and collect an additional 135.8 million euros.
The Back investment forms part of a larger fundraising round totaling 21 million euros, which also included strategic investor TOBAM through a separate issuance of 36,219,070 shares. Combined, the financing’s potential gross proceeds, including all warrant exercises, total 156.8 million euros.
Purchase Would Make Capital B Europe’s Second-Largest Corporate Bitcoin Holder
Capital B last reported holding 3,145 BTC, acquired for a total of 284.2 million euros at an average price of 90,352 euros per coin. Those holdings were worth 214 million euros, or roughly $248 million, at the time of the company’s most recent disclosure.
Adding the planned 376 BTC purchase would bring the company’s total holdings to 3,521 BTC, worth approximately $269.5 million at current prices.
That total would place the Bitcoin treasury firm second among Europe-listed public companies by Bitcoin held, behind Germany’s Bitcoin Group SE, which holds 3,605 BTC, according to data from Bitcoin Treasuries.
Adam Back’s Role in Bitcoin’s History
Back is chief executive of Bitcoin infrastructure company Blockstream and one of the earliest contributors to the cryptographic work that preceded Bitcoin’s creation.
He is cited directly in Bitcoin’s original 2008 white paper, making him one of a few individuals referenced by name in the document that introduced the cryptocurrency.
Capital B’s Paris-listed shares traded at 48.5 euro cents around midday Central European Time on the day the raise was announced, down 2.1% amid a broader decline in crypto asset prices. Bitcoin itself traded below $77,000 that day, down nearly 1.8% over the preceding 24 hours.
Existing Shareholders Face Dilution
The warrant-heavy structure of the raise leaves current Capital B shareholders exposed to meaningful dilution. According to the company’s own disclosure, an investor holding 1% of Capital B before the placement would hold approximately 0.90% immediately afterward, and as little as 0.65% if every warrant from the combined raise is eventually exercised.
Capital B also plans to consolidate every 10 existing shares into one on September 8, with the ratios and exercise prices tied to the newly issued warrants adjusted proportionately to reflect that change.
