Capital B Buys 376 Bitcoin for $29.4M, Expands Treasury to 3,521 BTC
Capital B has expanded its corporate treasury by purchasing 376 Bitcoin for approximately $29.4 million, bringing its total holdings to 3,521 BTC. The Euronext Growth Paris-listed company acquired the latest batch of Bitcoin at an average price of around $78,025 per coin. This purchase was funded through recent equity raises, including a private placement with institutional investors that netted about $33.3 million.
The addition of 376 BTC increases Capital B's aggregate acquisition cost to approximately $359.3 million, with the company valuing its treasury at roughly $279.7 million as of September 7. This means that the market value of its Bitcoin holdings is currently about $80 million below their cost basis.
The strategy behind Capital B's approach involves issuing securities and buying Bitcoin while earlier purchases remain underwater on an aggregate basis. If the price of Bitcoin rises, Capital B stands to gain substantially; however, if it falls, both volatility and financing dilution become more significant concerns for shareholders.