Capital B's Bitcoin Holdings Rise Amid Flat Share Value

When investors buy shares in a company that holds Bitcoin, they own a stake not just in the cryptocurrency but also in the business. This relationship can be complex and is exemplified by France's Capital B, a Bitcoin treasury company listed on Euronext Growth Paris.

Between August 17 and September 7, Capital B's treasury Bitcoin holdings increased from 3,145 BTC to 3,521 BTC, a rise of roughly 12%. However, the value of each share barely moved under the company's calculation, which includes shares that could be issued in the future.

This phenomenon is due to the method used by management to pay for Bitcoin. When a company sells new shares, it raises cash but existing shareholders own a smaller percentage of the company. Borrowing preserves their percentage but adds a repayment obligation.

Capital B's strategy involves using access to investment capital to accumulate Bitcoin. The company must pursue this goal in a different financial setting than its American counterparts due to French accounting rules and euro funding.