French Bitcoin treasury company Capital B said it raised €21.0 million ($24.5 million) through a private share placement.
Placement drew backing from Adam Back and TOBAM
According to an Aug. 28 announcement, the financing was priced at €0.58 per ABSA, a unit made up of one share bundled with four share-subscription warrants. The placement was carried out without pre-emptive subscription rights.
Participants in the raise included Adam Back, the cypherpunk known in the Bitcoin community and chief executive of Bitcoin-focused blockchain development firm Blockstream, as well as asset manager TOBAM.
Full warrant exercise could add another $158 million
If all of the warrants issued in the deal are exercised, Capital B said it would receive an additional €135.8 million ($158 million) through the issuance of 144,876,280 ordinary shares.
The company said it retains the right to open an accelerated warrant exercise period if the volume-weighted average price of its shares over the previous 20 trading days rises above 130% of the exercise price for the relevant warrant tranche.
Company plans to buy 270 BTC
Capital B said the proceeds will be used to acquire 270 Bitcoin (BTC), which would bring its total holdings to 3,415 BTC.
CoinMarketCap data cited in the report shows the company currently holds 3,139 BTC worth less than $249 million, making it the 29th largest publicly traded Bitcoin treasury company. It sits behind Bitcoin Group SE, which holds 3,605 BTC worth less than $286 million.
Even so, Capital B remains far smaller than Strategy, the first and largest Bitcoin treasury company. At the time of writing, Strategy held 843,775 BTC valued at nearly $67 billion.
Fundraise follows June authorization proposal
The announcement came after Capital B submitted a proposal to its board in early June seeking approval to establish as much as €5 billion ($5.8 billion) in capital increases through 125 billion shares at current nominal value, alongside $116 billion in credit instruments.
The resolution passed with 162,486,459 votes in favor, representing 99.34% support. The report noted that some smaller treasury companies were selling their holdings at the same time.