Key Takeaways
- • Capital B raised €7.6 million ($8.8 million) from Adam Back, CEO of Blockstream and prominent Bitcoin industry figure cited in the original 2008 Bitcoin white paper, through a share issuance of 13.2 million shares at €0.58 per share with attached warrants.
- • The company plans to deploy proceeds to acquire up to 376 bitcoin, expanding its treasury from 3,145 BTC to a targeted 3,521 BTC ($269.5 million at current prices), positioning Capital B as the second-largest bitcoin holder among Europe-listed public companies behind Bitcoin Group SE.
- • Capital B's current bitcoin holdings were acquired at an average cost of €90,352 per coin and are presently valued at €214 million ($248 million), representing an unrealized loss relative to original acquisition costs given current market valuations.
- • The financing structure includes attached warrants that could generate additional capital of up to €49.4 million if exercised, providing a secondary funding mechanism for future bitcoin accumulation aligned with the company's stated objective of acquiring 1% of Bitcoin's total supply by 2033.
- • At the time of the announcement, Capital B shares traded at €0.485, down 2.1% on the day, while Bitcoin itself declined 1.8% in 24-hour trading below $77,000, reflecting broader cryptocurrency market weakness.
Summary
Capital B, a Euronext Growth Paris-listed cryptocurrency treasury firm, secured €7.6 million ($8.8 million) in funding from Adam Back, CEO of Bitcoin developer Blockstream and an early cypherpunk cited in Bitcoin's original 2008 white paper. The investment was structured as an equity raise of 13.2 million shares at €0.58 per share, with each share carrying four attached warrants. This transaction represents a significant strategic endorsement from one of the cryptocurrency industry's most established figures.
The company intends to deploy the capital toward acquiring up to 376 bitcoin, which would increase its total treasury holdings from the previously reported 3,145 BTC to approximately 3,521 BTC. At the time of reporting, this projected holding would be valued at $269.5 million, positioning Capital B as the second-largest bitcoin holder among publicly listed European companies, trailing only German-listed Bitcoin Group SE, which holds 3,605 BTC according to Bitcoin Treasuries data.
Capital B's existing bitcoin inventory was acquired at an average cost of €90,352 per coin for a total outlay of €284.2 million euros. The current valuation of these holdings at €214 million ($248 million) reflects significant unrealized losses relative to original acquisition costs—a consideration material to the company's long-term treasury management strategy and shareholder returns. The planned acquisition at current market rates would effectively represent new purchases at substantially lower average prices than historical acquisitions.
The financing structure incorporates embedded optionality through warrant provisions. The attached warrants carry the potential to raise an additional €49.4 million if exercised, providing Capital B with secondary funding capacity for future bitcoin accumulation. This structure aligns with the company's publicly stated long-term objective of accumulating 1% of Bitcoin's total supply by 2033, a measurable and ambitious target for institutional bitcoin hoarding.
Market conditions at the time of announcement showed cryptocurrency weakness, with Capital B shares declining 2.1% to €0.485 and Bitcoin itself trading below $77,000, down 1.8% over the preceding 24 hours, indicating the raise occurred during a period of sector-wide price pressure.
The company intends to deploy the capital toward acquiring up to 376 bitcoin, which would increase its total treasury holdings from the previously reported 3,145 BTC to approximately 3,521 BTC. At the time of reporting, this projected holding would be valued at $269.5 million, positioning Capital B as the second-largest bitcoin holder among publicly listed European companies, trailing only German-listed Bitcoin Group SE, which holds 3,605 BTC according to Bitcoin Treasuries data.
Capital B's existing bitcoin inventory was acquired at an average cost of €90,352 per coin for a total outlay of €284.2 million euros. The current valuation of these holdings at €214 million ($248 million) reflects significant unrealized losses relative to original acquisition costs—a consideration material to the company's long-term treasury management strategy and shareholder returns. The planned acquisition at current market rates would effectively represent new purchases at substantially lower average prices than historical acquisitions.
The financing structure incorporates embedded optionality through warrant provisions. The attached warrants carry the potential to raise an additional €49.4 million if exercised, providing Capital B with secondary funding capacity for future bitcoin accumulation. This structure aligns with the company's publicly stated long-term objective of accumulating 1% of Bitcoin's total supply by 2033, a measurable and ambitious target for institutional bitcoin hoarding.
Market conditions at the time of announcement showed cryptocurrency weakness, with Capital B shares declining 2.1% to €0.485 and Bitcoin itself trading below $77,000, down 1.8% over the preceding 24 hours, indicating the raise occurred during a period of sector-wide price pressure.
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