Capital B bitcoin holdings up 12 percent but per-share value stalls

[DigitalToday reporter Hyunwoo Choo (추현우)] French bitcoin treasury company Capital B increased its bitcoin holdings by 12 percent to 3,521 from 3,145 in three weeks from late August to now. But the bitcoin value per share was barely changed. Crypto-focused media outlet CryptoSlate reported this on Sept. 12 local time.

Capital B's own disclosure showed diluted satoshis per share rose only to 736.6 from 736.4 over the period. Its common shares outstanding increased about 12 percent to 382,506,040 from 330,306,740, while the share count included in the diluted calculation also rose about 12 percent to 477,977,121 from 427,074,421. With bitcoin holdings and potential shares expanding at the same rate, the impact of additional coins was offset by new share issuance.

■ Fundraising via new shares, warrants and convertible bonds, plus reverse split, raises risk of statistical distortion

Capital B raised funds on Aug. 28 by attaching 4 warrants to each common share. The warrants have a five-year maturity and give holders the right to buy new shares later at a set exercise price. Whether they are exercised depends on investors, so it is uncertain whether cash will actually flow to the company and be used to buy bitcoin. The company also uses bitcoin-linked convertible bonds, where the repayment burden is tied to bitcoin's value, meaning the burden could rise as the coin's value increases.