Key Takeaways:
French-listed Bitcoin treasury company Capital B (ALCB.PA) saw its shares climb more than 6.5 percent on Monday after securing a €1.1 million ($1.28 million) investment from Blockstream CEO Adam Back to expand its corporate Bitcoin holdings.
The investment from Back, a pivotal figure in Bitcoin’s history as the inventor of the Hashcash proof-of-work algorithm, reinforces Capital B’s identity as a dedicated public Bitcoin treasury vehicle. His growing stake signals a strong conviction in corporate Bitcoin accumulation strategies, lending significant credibility to the European firm.
The transaction was structured through the issuance of 10 million share subscription warrants to Back at a price of €0.11 each. Every warrant provides the right to acquire one new share at an exercise price of €0.84, a figure representing a 30 percent premium to the company's recent volume-weighted average price. Following the deal, Back holds over 39.5 million shares on a fully diluted basis, equivalent to 9.97% of the company.
This investment highlights a growing trend of direct corporate balance sheet allocation to Bitcoin, with a key industry pioneer publicly backing the strategy. The fresh capital injection provides Capital B with immediate resources to act on its mandate, acquiring more Bitcoin amid what Back has previously described as a methodical, multi-year institutional adoption cycle.
Capital B intends to use the proceeds to “accelerate” its Bitcoin treasury strategy. The company currently holds 2,943 BTC, valued at approximately $234 million, ranking it as the 25th largest publicly traded Bitcoin holder globally, according to data from Bitcointreasuries.net.
The move by Capital B to bolster its holdings contrasts with the recent actions of some other publicly listed treasury firms. In April, Nasdaq-listed Nakamoto, the 20th largest Bitcoin treasury firm, announced a derivatives program to hedge its BTC exposure. A month prior, Genius Group liquidated its entire Bitcoin treasury of 84 BTC to repay debt, according to a filing with the US Securities and Exchange Commission.
Alongside the new investment, Capital B also revised the terms of convertible bonds previously subscribed by Back. The conversion price for its OCA B-04 bonds was lowered from €5.174 to €2.59 per share, significantly easing the path to equity conversion.
The company stated the adjustments were made in response to current market conditions to provide greater flexibility. This strategic financing from a prominent Bitcoin advocate provides Capital B with a stronger foundation to continue its accumulation strategy, navigating the long-term institutional investment cycles that figures like Back anticipate will take 12 to 18 months to fully materialize.
This article is for informational purposes only and does not constitute investment advice.
