Capital B Raises Funds for Bitcoin Acquisition
French treasury management company Capital B has successfully raised €0.98 million (approximately $1.1 million) through an equity offering, primarily aimed at acquiring more bitcoin in line with its ongoing cryptocurrency reserve strategy. On September 28, the firm announced the purchase of 13 additional bitcoins, which increases its total bitcoin treasury value to around $294 million.
Equity Offering Details
To facilitate this acquisition, Capital B issued 172,978 new ordinary shares priced at $6.45 each, culminating in a total raise of $1,115,521, inclusive of share premiums. Notably, this pricing resulted in a 3.8% premium compared to the closing value from the trading session before the announcement. The issuance process utilized an at-the-market (ATM) emission framework, which has been in place since a renewal agreement with asset management firm Tobam was established on January 26.
Share Issuance Terms
The ATM arrangement set certain terms for the issuance of shares, including that the subscription price for new shares was determined based on the highest value from three potential benchmarks: the previous session’s closing price, a euro-adjusted net asset value defined by Capital B, or a minimum price established in a prior extraordinary general meeting conducted on June 17. Furthermore, the number of shares that could be requested was capped to 21% of the trading volume from the preceding session.
Trading and Regulatory Aspects
The newly issued shares are set to be traded on Euronext Growth Paris, and the company clarified that the transaction did not necessitate a prospectus approval by France’s financial regulatory body, the Autorité des Marchés Financiers (AMF).
Current Bitcoin Holdings and Performance
With this latest acquisition, Capital B, along with its subsidiary Capital B Luxembourg SA, now holds a total of 3,538 bitcoins as part of its core treasury strategy, reflecting an overall acquisition cost of $352.52 million, translating to an average purchase price of $99,655 per bitcoin. However, given that Bitcoin’s current price exceeds $83,000, the value of the firm’s treasury remains considerably high despite facing underwater positions.
In terms of performance, Capital B reported a 2.20% yield on BTC year to date, amounting to a gain of approximately 62.1 bitcoins (around $5.22 million). In the third quarter alone, the yield stood at 0.34%. Notably, these performance indicators are internally utilized metrics for assessing treasury strategy and do not adhere to standard financial or operational measures.
Market Context
Interestingly, Capital B’s latest purchase comes at a time when other firms, like the treasury giant Strategy, also expanded their bitcoin holdings. Strategy recently added another 1,665 bitcoins to its portfolio, now holding a total of 847,666 BTC, acquired at an average cost of $75,437 per coin. Both firms appeared to have slowed their purchasing pace amid prolonged declines in cryptocurrency values and the ensuing unrealized losses in corporate treasuries.
Operational Bitcoin Holdings
In addition to the main bitcoin treasury, Capital B retains 61 bitcoins earmarked for operational functions, distinct from its treasury reserve and excluded from the performance indicators. The company’s bitcoin assets are managed and held in custody by Swissquote Bank Europe, using services from technology firm Taurus to ensure secure custody solutions.
