Capital B Raises $17.8M to Fuel More Bitcoin Buys

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France-listed Bitcoin treasury company Capital B raised 15.2 million euros ($17.8 million) from strategic investors including Blockstream CEO Adam Back and Paris-based asset manager TOBAM as it seeks to expand its BTC treasury.

The new capital was raised through a private placement of shares, with four share subscription warrants attached to each share at a fixed price of $0.78, the company said Monday.

The company said the proceeds, together with ongoing operations, could allow it to acquire another 182 Bitcoin, potentially lifting its total holdings to 3,125 BTC.

If all warrants issued in connection with the transaction were exercised, Capital B could raise an additional $116.5 million through the issuance of about 92 million additional shares, wrote Alexandre Laizet, the board director of Bitcoin strategy at Capital B.

The raise shows Capital B is still pursuing Bitcoin accumulation while parts of the corporate Bitcoin treasury sector are taking a more defensive posture, including hedging programs, debt reduction and asset sales after months of weaker market conditions.

The company’s latest raise comes a week after Capital B raised $1.3 million from Adam Back to accelerate its Bitcoin treasury strategy.

Capital B raises $17.8 million from Adam Back and TOBAM. Source: Capital B

Capital B shares rise after capital raise

Capital B shares rose around 4.3% after the announcement on Monday and traded around 0.67 euros ($0.79) at the time of writing.

The company’s shares are down by around 11% year-to-date, data from Yahoo Finance shows.

Capital B shares, 24-hour chart, in euros. Source: Yahoo Finance

Capital B is currently the 25th-largest Bitcoin treasury firm, holding 2,943 BTC, worth about $237 million. It ranks as Europe’s second-largest Bitcoin treasury following Germany’s Bitcoin Group SE, according to Bitcointreasuries data.

Related: Adam Back says Bitcoin’s post-quantum shift may reveal true Satoshi stash 

On April 20, Michael Saylor’s Strategy raised an additional $2.5 billion from the issuance of Stretch (STRC) and the sales of Class A common stock (MSTR). On April 23, XCE raised $794,000 of capital in a round backed by Adam Back.

Barring these raises, no other Bitcoin treasury companies have publicly announced a capital raise during the past six weeks. However, some companies are looking to hedge against the downside risk of the bear market.

On April 24, Nasdaq-listed Bitcoin treasury company Nakamoto announced an actively managed Bitcoin derivatives program seeking to generate recurring income from volatility and hedge part of its corporate BTC holdings against downside exposure. A month earlier, the company announced the sale of 284 Bitcoin (worth about $20 million at the time), in a March 30 filing with the US Securities and Exchange Commission.

Earlier in February, Bitcoin treasury company Genius Group said it sold its remaining treasury holdings of 84 BTC for about $5.7 million, which it used toward repaying an $8.5 million debt obligation, according to an SEC filing.  

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