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Capital B to buy up to 376 BTC after $8.8 million Adam Back deal
Capital B’s planned purchase would lift its bitcoin holdings to 3,521 BTC, and the share and warrant structure could dilute existing shareholders if warrants are exercised.
Capital B, the Euronext Growth Paris-listed company focused on cryptocurrency holdings, raised 7.6 million euros, or about $8.8 million, from Bitcoin developer and investor Adam Back to expand its bitcoin treasury, according to a CoinDesk report. The company plans to use the proceeds to buy up to 376 bitcoin. That would increase its reported holdings to 3,521 BTC, which CoinDesk estimates would be worth about $269.5 million at current prices.
Capital B last reported holding 3,145 BTC, acquired for 284.2 million euros, and said those holdings were worth 214 million euros at the time of the filing referenced by CoinDesk. Its shares traded at 48.5 euro cents around midday Central European time on Wednesday, down 2.1% on the day amid a broad dip in crypto prices.
The funding came through the issuance of 13,181,030 shares with four warrants attached per share, with the warrants priced at 58 euro cents per share. CoinDesk reported the deal also includes 36,219,070 shares for a broader 21 million euro investment, and that if every warrant is exercised, Capital B could issue an additional 144.9 million shares and collect 135.8 million euros, with existing shareholders exposed to substantial dilution.
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