INSTITUTIONAL | Europe’s Second-Largest Bitcoin Holder Set to Raise Over $100 Billion in Equity Issuance to Accelerate Bitcoin Holdings

French bitcoin treasury firm, Capital B, has gotten shareholder approval to raise up to $120 billion through equity and debt issuances, giving the company one of the largest financing mandates among corporate bitcoin holders as it accelerates its cryptocurrency acquisition strategy.

More than 95% of shareholders backed resolutions authorizing up to $5.75 billion in equity issuance and as much as $115 billion in debt instruments, according to the company.

The capital, if deployed, will be used to increase bitcoin holdings on its balance sheet.

“[The new capital instruments will] ‘accelerate its Bitcoin accumulation strategy, focused on increasing the number of Bitcoin per fully diluted share over time.'”

Going by its latest publicly disclosed total shares with voting rights, establishing $5.75 billion in capital increase and $120 billion in credit instruments is equivalent to 125 billion new shares at current nominal value will dilute existing shareholders to about 0.24% of the company ownership if full exercised.

According to the latest insights, this approach is needed to keep bitcoin treasury companies going amidst the changing financing model of such companies which has started to show signs of strain.

The vote also formalized the company’s rebranding from The Blockchain Group to Capital B. The financing authorization does not require the company to immediately raise the full amount but provides management with flexibility to tap capital markets over time as it expands its bitcoin treasury strategy.

Capital B currently holds 3,139 bitcoin, making it Europe’s second-largest corporate bitcoin holder, and joins a growing list of publicly traded companies using equity and debt markets to finance digital asset accumulation.

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