Home›Crypto›Market Structure›BTC PREF starts trading July 20 after 52% subscribed i…

BTC PREF starts trading July 20 after 52% subscribed in Sweden

Nearly half of the rights offer was left unfilled, and the preferred share’s stated 10% cash yield at SEK 120 depends on the eventual market price, with dividends that can be deferred.

Reported · Written up by our desk · Market Structure

Swedish Bitcoin treasury firm B Treasury Capital AB said its new BTC PREF preference share is expected to begin trading on the Spotlight Stock Market on Monday, July 20, after investors left much of the rights offer unfilled.

B Treasury Capital AB received subscriptions for 102,025 of 195,078 shares, or 52% of the offer, generating about SEK 12.2 million gross and SEK 11.9 million net, versus a maximum of roughly SEK 23.4 million gross. The company expects BTC PREF to pay SEK 1 per month, totaling SEK 12 per year on the SEK 120 subscription price.

The issuer describes BTC PREF as preferred equity intended to add balance-sheet capital without debt or large repayment obligations, with proceeds directed primarily to additional Bitcoin purchases and a liquidity reserve for preference dividends. However, dividend payments may be deferred, and any unpaid shortfalls accumulate without interest before dividends on Class B common shares.

Because the indicated cash yield changes with the share price, the article notes that at SEK 100 the SEK 12 annual payout would imply a 12% cash yield, while at SEK 90 it would be about 13.3%. After the partial take-up, the company has not disclosed the final allocation of proceeds or the resulting reserve balance, leaving dividend coverage as a key issue for investors to assess, according to CryptoSlate.

Latest closeBitcoin $64,048.49 ▲0.4%

More like this

Sources