Capital B Raises €7.6M From Adam Back to Expand Bitcoin Treasury

French cryptocurrency treasury firm Capital B (ALCPB) has raised €7.6 million ($8.8 million) from prominent Bitcoin developer and investor Adam Back as it seeks to significantly expand its Bitcoin holdings.

The Euronext Growth Paris-listed company issued 13,181,030 new shares to Back at €0.58 per share, with each share accompanied by four warrants, according to a Wednesday filing.

Capital B intends to use the fresh capital to acquire as many as 376 Bitcoin (BTC). Completing the planned purchase would increase its treasury from 3,145 BTC to approximately 3,521 BTC, currently valued at around $269.5 million.

That would position Capital B as the second-largest Bitcoin treasury company among publicly listed European firms, behind Germany-listed Bitcoin Group SE, which holds about 3,605 BTC, according to Bitcoin Treasuries data.

Back, the CEO of Bitcoin infrastructure company Blockstream, is one of the cryptocurrency sector’s best-known early contributors. A longtime cypherpunk, his work is referenced in Bitcoin’s original 2008 white paper.

Capital B previously reported acquiring its existing 3,145 BTC for €284.2 million, representing an average purchase price of €90,352 per Bitcoin. Those holdings are currently worth roughly €214 million ($248 million).

The investment from Back is part of a broader €21 million financing round that also included strategic investor TOBAM. Altogether, Capital B issued 36,219,070 shares under the financing.

Each newly issued share includes four five-year warrants allowing investors to purchase additional Capital B shares. Full exercise of the warrants could result in another 144.9 million shares being issued and raise €135.8 million, potentially bringing total gross proceeds from the financing to €156.8 million.

However, the structure could significantly dilute existing shareholders. An investor owning 1% before the placement would see that stake fall to 0.90% afterward and potentially 0.65% if all warrants are exercised.

Capital B shares traded around €0.485 on Wednesday, down 2.1%, amid broader cryptocurrency market weakness. Bitcoin was trading below $77,000, down nearly 1.8% over 24 hours.

The company also plans a 10-for-one share consolidation on Sept. 8, with warrant ratios and exercise prices adjusted accordingly.