Capital B's $122 Billion Program to Increase Bitcoin Reserves

Capital B has asked its shareholders to approve an increase in its financing capacity up to $122 billion. The company's goal is to accelerate its Bitcoin treasury strategy and enable the Buy of a larger volume of this digital Asset in the future.

Capital B Raises New Capital To Buy More Bitcoin

Capital B, a company listed on the French stock exchange and focused on its Bitcoin treasury strategy, has asked its shareholders to approve broad powers to raise new capital. The company seeks to obtain Permission to issue new shares and Credit instruments to continue its Bitcoin Buy process at a faster pace.

Alexandre Laizet, a board member and head of Bitcoin Strategy at Capital B, announced on Monday in a post on the X Community that the company has submitted a new proposal to the board. According to this proposal, Capital B intends to obtain Permission to increase capital up to 5 billion euros (approximately $5.8 billion) through the issuance of 125 billion shares at their current nominal value, as well as approximately $116 billion in Credit instruments.

It should be noted that these figures represent the maximum requested Permissions for financing and do not imply immediate capital raising or expenditure.

Shareholders can cast their votes online until the company's combined general meeting on June 17.

This request comes as Capital B's Bitcoin treasury Strategy remains focused on accumulating more BTC; while some smaller companies in this sector, facing increased Market pressure, have Sold some of their Assets, Suspended their plans, or moved towards implementing Hedging strategies.

This proposal was made two weeks after Capital B bought 192 Bitcoins worth $15.2 million at an Avg. Price of approximately $78,948 per Bitcoin. With this Buy, the company's total Bitcoin Asset at that Time reached 3,135 Bitcoins. Capital B then announced on Monday the separate Buy of 4 more Bitcoins, increasing its total Bitcoin reserves to 3,139 Bitcoins.

Capital B announced that it has raised approximately $325 million in capital so far. This figure was achieved after raising $17.8 million from strategic investors, including Adam Back, CEO of Blockstream, and Paris-based Asset management firm TOBAM.

Source: Alexandre Laizet

Review of Capital B Stock Performance Over the Past Six Months

According to data published at the Time of writing, the Price of Capital B shares fell by approximately 7 Percentage after the company announced its new plan to raise capital and Buy more Bitcoin, reaching $0.56 by 10:17 AM UTC.

TradingView data also shows that at the Time of writing, Capital B's stock has decreased by approximately 44 Percentage over the past six months. During the same period, the Price of Bitcoin also fell by more than 19.4 Percentage, indicating simultaneous pressure on the crypto Market and the shares of companies active in Bitcoin treasury.

Capital B's Rank Among European Bitcoin Companies

According to BitcoinTreasuries data at the Time of writing, Capital B ranks 25th among the largest Bitcoin treasury companies globally in terms of Bitcoin reserves. The company is also the second-largest Bitcoin treasury company in Europe, after Bitcoin Group SE of Germany. Bitcoin Group SE currently holds 3,605 Bitcoins, valued at approximately $250 million.

Bear Market Pressure Continues on Bitcoin Treasury Companies

Capital B's move to accelerate Bitcoin accumulation comes as some smaller companies active in Bitcoin treasury are reducing their activities or Exiting this Strategy under Bear market pressure.

On Thursday, French semiconductor manufacturer Sequans Communications announced that it has ended its digital Asset treasury Strategy and intends to fully refocus on the growth of IoT (Internet of Things) semiconductors. The company at that Time held 658 Bitcoins worth approximately $48 million and announced its intention to gradually manage and divest its remaining digital Assets. The release of this news caused Sequans Communications' stock Price to rise by approximately 14.5 Percentage in morning trading.

On Monday, Michael Saylor's Strategy company announced that it had Sold 32 Bitcoins to finance the distribution of its preferred shares. This was the first reported Bitcoin Sell by Strategy since a transaction related to recording a tax loss in 2022. Some investors are concerned that if the need for financing from this source continues, more pressure will be placed on the preferred stock-based financing model; although these concerns are currently only part of the existing views in the Market.

In the same vein, Nakamoto , a Nasdaq-listed Bitcoin treasury company, announced on April 24 the launch of an Active Bitcoin derivatives program. The goal of this program was stated to be to Earn Yields from Market Fluctuation and hedge a portion of the company's BTC Assets against Price declines. Nakamoto also reported in a filing dated March 30 that it had Sold 284 Bitcoins worth approximately $20 million at that Time.

This content is for Information purposes only and does not constitute financial advice. Cryptocurrency trading involves high risk. Please conduct your own research before making any investment decisions.