Capital B Raises €21M in Controversial Bitcoin Fundraising Deal
Capital B is planning to raise €21 million through a private placement of shares and warrants. The company will use this money, along with operating funds, to buy more Bitcoin. This deal would give Capital B a potential treasury holding of 3,415 BTC.
The immediate effect on the company's stated measure of Bitcoin backing per diluted share is minimal, decreasing by just 0.02%. However, the four warrants attached to each new share create a larger layer of contingent dilution risk.
Full exercise of these warrants would add another 144,876,280 shares and provide €135.82 million in cash. If every warrant were exercised and no additional Bitcoin were attributed to those proceeds, Capital B's potential 3,415 BTC would be spread across 601,973,171 diluted shares.
This dilution risk is significant, with an investor holding 1% before the placement falling to as low as 0.55% on the company's diluted basis after full exercise of the warrants.