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Capital B Raises €1.1 Million From Adam Back in Warrant Deal

The pricing ties share issuance to Bitcoin reserves to align investor incentives.

Overview

  • Capital B announced a warrant financing on Monday that brought in €1.1 million from Blockstream CEO Adam Back as the stock rose more than 6.5%.
  • Back subscribed to 10 million warrants at €0.11 each, with each warrant exercisable for one share at an initial €0.84 price set by a Bitcoin-linked modified net asset value that equals 130% of the five-day average share price.
  • The mNAV model pegs costs to the company’s Bitcoin per share, which means potential dilution rises or falls with the value of the Bitcoin treasury.
  • Capital B also cut the conversion price on its OCA B-04 bonds to €2.59 from €5.174, added one warrant per converted bond, and removed a share-price hurdle so Back can convert at any time before maturity.
  • Back now holds more than 39.5 million shares on a fully diluted basis for 9.97% ownership, and the company says the funds will help grow its 2,943 BTC treasury, roughly $234 million and the 25th largest, following his late-April backing of Connecting Excellence Group.