Capital B Enhances Bitcoin Holdings with New Purchase

Capital B Enhances Bitcoin Holdings with New Purchase

Capital B has made a strategic move by acquiring five Bitcoin for approximately €280,000, raising its total Bitcoin holdings to 3,145 BTC.

Funding the Acquisition

This acquisition is part of Capital B’s ongoing strategy to build its Bitcoin treasury, which has been financed through equity issuance. The company’s total investment in Bitcoin now stands at €284.2 million, but the reported net asset value is approximately €170.9 million.

BTC Yield and Financial Metrics

Capital B has announced a year-to-date BTC Yield of 2.14%, reflecting its strategic treasury management rather than traditional investment performance. Additionally, the recent purchase of Bitcoin occurred at an average price of €55,882 per Bitcoin.

Recent Share Issuance

The new Bitcoin was acquired following a capital increase of approximately €301,460 through the issuance of 647,110 shares under an ATM-type agreement with TOBAM. This issuance price represented a 3.52% premium to Capital B’s closing price prior to the transaction.

Contrasting Strategies

While Capital B continues to accumulate Bitcoin, this contrasts sharply with other firms like Strategy, which recently sold 3,328 BTC to raise funds for dividends and share repurchases. In contrast, Capital B remains committed to its long-term strategy of increasing Bitcoin per fully diluted share.

Future Developments

Looking ahead, Capital B retains the authority to raise significant capital for Bitcoin purchases, with shareholder approval for up to €5 billion in capital increases and €100 billion in credit instruments. This could allow for increased acquisitions as market conditions evolve.