Capital B Seeks $122B Funding Approval to Expand Bitcoin Holdings

Capital B is seeking shareholder approval for up to $122 billion in fundraising authority as it aims to accelerate the expansion of its Bitcoin treasury strategy.

Capital B, which is listed in France, is seeking shareholder approval for a substantial new mandate covering capital-raising instruments, aiming to secure authority for issuing additional equity and debt products to speed up its Bitcoin acquisition strategy.

According to a Monday X post by Alexandre Laizet, Capital B submitted a proposal to its board of directors seeking authorization for up to 5 billion euros ($5.8 billion) in capital increases through 125 billion shares at their current nominal value, along with approximately $116 billion in credit instruments.

Shareholders may submit their votes online up until the company’s combined general meeting scheduled for June 17.

The proposal arrives as Capital B continues adding to its Bitcoin reserves, while several smaller treasury firms are reducing holdings, abandoning their strategies, or adopting hedging programs amid growing market pressure.

The shareholder proposal was submitted about two weeks after Capital B purchased 192 Bitcoin for $15.2 million at an average cost of roughly $78,948 per coin, increasing its holdings to 3,135 BTC at the time. A separate purchase of 4 BTC was later announced on Monday, bringing the company’s total Bitcoin reserves to 3,139 BTC.

To date, Capital B said roughly $325 million has been raised, including a $17.8 million funding round backed by strategic investors such as Adam Back and the TOBAM asset management firm based in Paris.

Following the announcement, shares of Capital B declined by about 7% and were trading at $0.56 as of 10:17 a.m. UTC, according to data from Yahoo Finance.

Over the last six months, the shares of Capital B have fallen by 44%, while the price of Bitcoin has declined by more than 19.4%, according to data from TradingView.

According to BitcoinTreasuries data, Capital B ranks as the 25th-largest corporate Bitcoin holder and the second-largest in Europe, trailing only Bitcoin Group SE, which holds 3,605 BTC valued at roughly $250 million.

Bitcoin Treasury Firms Continue to Face Pressure Amid Bear Market Weakness#

Capital B’s effort to expand its Bitcoin holdings comes at a time when several smaller Bitcoin treasury firms are scaling back or shutting down their operations.

On Thursday, Sequans Communications announced that its previously unveiled digital asset treasury strategy had been concluded and outlined plans to concentrate exclusively on expanding its Internet of Things (IoT) semiconductor business.

At the time, the company held 658 Bitcoin valued at roughly $48 million and stated that it would gradually monetize its remaining holdings, a move that helped drive its share price up by approximately 14.5% during morning trading.

On Monday, Strategy announced that 32 Bitcoin had been sold to help finance the distribution of its preferred stock.

The transaction represented Strategy’s first disclosed Bitcoin sale since its 2022 tax-loss trade and intensified concerns surrounding its preferred stock financing structure, as investors worried that future dividend obligations could eventually require the company to liquidate part of its holdings.

On April 24, Nakamoto unveiled an actively managed Bitcoin derivatives strategy designed to generate recurring revenue from market volatility while hedging a portion of its corporate BTC reserves against downside risk. In a March 30 filing, the company disclosed the sale of 284 Bitcoin, valued at roughly $20 million at the time.