Capital B Raises €7.6M from Adam Back to Expand Bitcoin Treasury

• ALCPB.PA
• BTC-USD
• BTC

French <a href="https://xpertsstudio.com/why-american-bitcoin-abtc-stock-is-sliding-friday/” title=”Why American Bitcoin (ABTC) Stock Is Sliding Friday”>Bitcoin (CRYPTO: $BTC) treasury firm Capital B ($ALCPB) has raised €7.6 million (worth around $8.8 million) from Blockstream CEO Adam Back as it looks to add more Bitcoin to its corporate reserves.

The company said that Back subscribed to 13.18 million shares at €0.58 each, a 15.4% premium to Capital B’s September 1 closing price. Each share comes with four warrants, giving Back additional exposure to the company if its share price rises.

Two of the warrants can be exercised at €0.75 per share, while the other two carry exercise prices of €0.98 and €1.27. All four expire in five years.

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If every warrant is exercised, Capital B would raise a further €49.4 million and issue 52.7 million additional shares. The company can also accelerate the exercise of a warrant tranche if its 20-day volume-weighted average price stays above 130% of the relevant exercise price for 20 consecutive trading days, according to the company’s filing.

Capital B expects net proceeds of roughly €7.3 million after fees and transaction costs. The money, together with funds generated by its operations, could allow the company to acquire another 376 BTC, taking its potential holdings to 3,521 BTC from 3,145 BTC.

The deal will also increase Back’s ownership of Capital B. His stake will rise to 17.77% on an ordinary basis from 14.82%. If all the new warrants are exercised, his ownership could reach 27.8%, according to the filing.

Last month, Capital B also raised €21 million ($24.5 million) through a private share placement, with the proceeds primarily earmarked for buying Bitcoin.

Despite continued interest in Bitcoin treasury strategies, these companies have lost more than $80 billion in market value, according to a recent Financial Times analysis of the 50 largest corporate Bitcoin holders.

At the time of writing, Bitcoin is trading at $79,365, largely flat over the past day.

Source: finance.yahoo.com