Fragbite Group’s Bitcoin Treasury Initiative
Fragbite Group, a Swedish enterprise focused on gaming and Web3, has announced its intention to create a Bitcoin treasury as a strategy to safeguard its financial future. The company’s Board of Directors has embraced a new business approach aimed at optimizing profit management through investments in Bitcoin. In an official press release, Fragbite highlighted that it perceives Bitcoin not just as a safeguard against inflation, but also as part of a transformative global monetary system that could revolutionize how businesses manage their assets.
Funding and Stock Surge
To kick off this initiative, Fragbite plans to secure funds for purchasing Bitcoin by launching 0% convertible bonds valued at approximately 5 million krona, which translates to around $530,000. The conversion price for these shares is projected to be about 10 krona (roughly $1.05) each, reflecting a 110% premium based on a 20-day volume-weighted average price. The company is poised to conclude bond subscriptions in the near term.
In the wake of revealing its Bitcoin treasury strategy, Fragbite witnessed a remarkable 64% surge in its stock price, with shares reaching a peak of SEK 9.94 by June 30. Despite the significant shift towards Bitcoin, the company assured stakeholders that its routine business operations would remain largely unaffected, emphasizing that many functions are already executed in a decentralized fashion.
New Leadership Role
As part of the restructuring, Fragbite has introduced a specialized position, Treasury Director, to guide the company’s cryptocurrency endeavors. This role will be incentivized through a performance-based program aimed at enhancing shareholder value linked to Bitcoin investments. The appointed Treasury Director, Patrik von Bahr, who previously served as a Lead Game Designer at FunRock and is an outspoken proponent of Bitcoin, is optimistic about the potential for measuring Bitcoin per share metrics and deriving value from Bitcoin holdings, which he sees as vital for companies moving forward.
Von Bahr stated, “By being early movers in this paradigm shift, we look forward to establishing disproportionately much shareholder value in both the short and long term.”
Company Background
Founded in 2015, Fragbite Group operates a multitude of subsidiary companies engaged in developing and publishing games and content across various platforms, including PC, mobile, and consoles, with a focus on the gaming, esports, and web3 sectors. Headquartered in Stockholm, Sweden, the company is listed on the Nasdaq First North Growth Market.
