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Capital B Expands Treasury Strategy Through Planned Bitcoin-Backed Offering

Highlights:

  • Capital B plans a new Bitcoin-backed offering that would use its 3,139 BTC treasury to support investor returns.
  • The company says investor interest in Bitcoin-linked credit products has increased tenfold compared with last year.
  • Capital B aims to grow its reserves to 15,000 BTC by next year.

Capital B, a Paris-listed bitcoin treasury company, is developing a new digital credit product backed by its bitcoin holdings. Alexandre Laizet, a board director at the company, revealed the plan during an interview with Gareth Jenkinson at BTC Prague. The proposed instrument would target European investors and draw inspiration from Strategy’s STRC and Strive’s SATA products.

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Laizet mentioned that the company aims to solve problems in the digital asset sector in Europe. He said that investors are burdened with high tax rates, security issues, and rules and regulations that are outdated for the digital age.

The company is going to back the product with its 3,139 BTC treasury. Laizet says the instrument is designed to provide double-digit returns but maintain double-digit levels of volatility. He also stated that the company aims to develop a digital credit mechanism that could revolutionize the way European markets finance BTC.

Capital B views the product as part of a broader effort to expand financing tools backed by Bitcoin reserves. The company currently trades on Euronext Growth Paris under the ticker ALCPB. It describes itself as Europe’s first and largest Bitcoin treasury company. The proposed instrument would add another layer to the firm’s Bitcoin-focused business model while expanding investment options for European investors.

Bitcoin-Backed Offering Targets Double-Digit Returns

Laizet said Bitcoin treasury companies can support high-yield products because they hold assets that have appreciated strongly over time. He argued that traditional financial institutions often need 40 to 50 years of future cash flows to sustain double-digit returns. In contrast, he said Bitcoin treasury companies already hold Bitcoin on their balance sheets.

According to Laizet, Bitcoin has historically appreciated between 30% and 60% annually. He said that growth allows treasury companies to support credit products while continuing to increase bitcoin holdings. To illustrate the model, he pointed to recent activity at Strategy.

Laizet noted that Strategy sold 32 BTC to fund dividends linked to its STRC preferred stock program. Shortly afterward, the company acquired another 1,587 BTC. He said the example shows how Bitcoin treasury companies can operate credit structures while growing their Bitcoin reserves.

Investor demand has also increased. Laizet said Capital B recorded a tenfold increase in investor interest in digital credit products compared with last year. The company sees growing demand for financial products linked to bitcoin holdings and treasury strategies.

The project follows a major financing proposal that shareholders will consider on June 17. Capital B has sought approval to authorize up to €5 billion in new equity issuance. The proposal also seeks authorization for up to €116 billion in credit instruments to accelerate bitcoin accumulation.

Capital B has steadily expanded its bitcoin reserves through fundraising activities. Earlier this year, the company completed a €15.2 million private placement. Investors included Blockstream Chief Executive Adam Back and Paris-based asset manager TOBAM.

Capital B Maps Out Risks While Chasing Bitcoin Goals

Laizet said investors should consider several risks tied to the proposed instrument. He identified the price decline of BTC as one risk. Laizet stated, “Of course, there is a risk of execution, there is a risk of custody, but we work only with regulated banks. We have a team of capital market banking, technology, and corporate finance experts.”

Capital B has not disclosed a launch date for the proposed instrument. The company continues to pursue aggressive Bitcoin accumulation targets. It aims to hold 15,000 BTC by the end of next year. The company also plans to accumulate 1% of Bitcoin’s total supply in the next 7 years.

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