French Firm Capital B Boosts $294M Bitcoin Treasury via Share Offering

Key Takeaways

ATM Contract Terms and Execution

French treasury management firm Capital B confirmed Sept. 28 that it has raised $1.1 million (€0.98 million) through an equity offering to purchase an additional 13 bitcoin, furthering its cryptocurrency reserve strategy.

The company completed the capital increase on Sept. 28, issuing 172,978 new ordinary shares at an average price of $6.45 per share, for a total of $1,115,521 including share premium. The average share price represented a 3.8% premium over the closing price of the session preceding the announcement.

The issuance was executed under an at-the-market (ATM) emission contract renewed with asset management firm Tobam on Jan. 26. The transaction consolidated subscription requests submitted by Tobam between Sept. 14 and Sept. 22.

Under the terms of the ATM contract, the subscription price for each request was determined by taking the highest of three benchmarks: the closing price of the session prior to the request, the euro equivalent of an adjusted net asset value set by Capital B, or the floor price established by shareholders during an extraordinary general meeting on June 17. The terms also capped the number of requested shares at 21% of the preceding session’s trading volume.

According to a report, the newly issued shares will be admitted to trading on Euronext Growth Paris. Capital B noted that the transaction did not require a prospectus approved by the Autorité des Marchés Financiers (AMF), France’s financial regulator.

Total Treasury Reserves and Key Performance Metrics

With the latest purchase, Capital B and its subsidiary, Capital B Luxembourg SA, hold 3,538 bitcoin under its core “bitcoin treasury company” strategy. The total reserve represents an aggregate acquisition cost of $352.52 million, reflecting an average purchase price of $99,655 per bitcoin. However, at the current Bitcoin price above $83,000, the value of the treasury sits near $294 million, putting the firm’s holdings underwater.

Year to date, the group reported a BTC Yield of 2.20%, representing a gain of 62.1 bitcoin, or approximately $5.22 million. For the third quarter, its BTC Yield stood at 0.34%. Capital B noted that these key performance indicators are used internally to evaluate its treasury strategy and are not standard financial, operational, or liquidity performance metrics.

Capital B’s latest bitcoin acquisition coincided with a similar move by treasury giant Strategy, which announced the addition of another 1,665 bitcoin to its balance sheet on Monday. The purchase expanded Strategy’s industry-leading stash to 847,666 BTC, acquired at an average cost basis of $75,437 per coin.

Much like Strategy, Capital B had seemingly decelerated its purchasing cadence in recent months as plunging cryptocurrency prices deepened unrealized losses across corporate treasuries.

In addition to its main treasury reserve, the company holds 61 bitcoin for operational purposes. Those holdings are kept separate from the treasury reserve and excluded from the reported indicators.

Swissquote Bank Europe executed the acquisition and serves as the sole custodian for the company’s bitcoin holdings, utilizing custody solutions provided by Swiss technology firm Taurus.