Capital B Raises $13.3M Through Convertible Bonds to Expand Bitcoin Treasury Strategy

French Bitcoin treasury company Capital B raised €11.5 million ($13.3 million) through a combination of equity and convertible bonds from TOBAM Bitcoin Alpha Fund to expand its cryptocurrency holdings.

The transaction includes a €5 million capital increase at €2.90 per share and €6.5 million in convertible bonds through its Luxembourg subsidiary, The Blockchain Group Luxembourg SA.

TOBAM Partnership Fuels 2,275% Strategy Returns

The funding could allow Capital B to acquire approximately 160 additional Bitcoin, bringing the potential total holdings to 2,173 BTC as Europe’s first listed Bitcoin treasury company.

The convertible bonds carry a five-year maturity with conversion prices ranging from €3.66 to €4.75 per share, with 95% of proceeds designated for Bitcoin acquisition.

Capital B’s ALTBG strategy component delivered exceptional returns of 2,275% from November 2024 to July 2025, vastly outperforming Bitcoin’s 58% gain during the same period.

The company’s sats per share metric increased from 15 in November 2024 to 1,933 by July 2025, following multiple capital raises and strategic partnerships.

The deal coincides with accelerating corporate Bitcoin adoption globally, as MicroStrategy acquired 21,021 BTC for $2.46 billion at $117,256 per coin, bringing total holdings to 628,791 BTC.

Treasury Strategy Targeting Aggressive BTC Accumulation

Capital B’s convertible bond structure provides flexibility for both the company and TOBAM Bitcoin Alpha Fund through dual-tranche issuance. The first tranche of €6.5 million converts at €3.6557 per share, representing 130% of the July 31 volume-weighted average price.

A second optional tranche worth €13 million can be exercised within three months at higher conversion prices designed to ensure a positive BTC yield. The conversion rate equals either a 30% premium to the first tranche price or a floor price to maintain Bitcoin accumulation per diluted share.

TOBAM gained considerable influence through the transaction, with potential ownership reaching 4.47% on a fully diluted basis. The partnership builds on previous collaborations, including OCA B-02 and OCA A-03 agreements that contributed to Capital B’s growth trajectory.

The Luxembourg subsidiary structure allows European regulatory compliance while maintaining focus on Bitcoin treasury operations.

Zero-coupon bonds provide cost-effective financing compared to traditional debt instruments while preserving equity upside through conversion features.

Capital B’s strategy targets Bitcoin-per-share growth over dividends or traditional returns.

The company tracks sats per share as a key performance indicator, measuring Bitcoin accumulation relative to share dilution from capital raises.

Corporate Bitcoin Wave Accelerates Amid Market Volatility

MicroStrategy launched a $4.2 billion at-the-market equity program for STRC preferred shares following record quarterly performance.

Net income surged to $2.3 billion, driven by unrealized Bitcoin gains as BTC soared above $110,000 during Q2 2025. The company also raised $10.5 billion in gross proceeds over four months through multiple share classes and ATM facilities.

Additionally, Bitcoin holdings valued at approximately $69.4 billion generate substantial balance-sheet appreciation during crypto market rallies.

Similarly, Metaplanet filed for $3.6 billion in preferred stock funding while adding 463 Bitcoin to reach 17,595 total coins worth $1.78 billion.

The Japanese firm achieved 430.2% year-to-date BTC yield through aggressive accumulation funded by equity issuances and bond redemptions.

European adoption expanded with Smarter Web Company surpassing 2,000 Bitcoin holdings after purchasing 225 BTC for £19.9 million.

The London-listed firm achieved 49,198% year-to-date BTC yield under its “10 Year Plan” treasury strategy. However, skepticism emerged as Bitcoin ETFs recorded $643 million in net outflows last week, ending a seven-week inflow streak.

Maelstrom Fund CIO Arthur Hayes warned Bitcoin could retreat to $100,000 amid macroeconomic headwinds, having trimmed $13.3 million in cryptocurrency holdings.

In addition, VanEck’s Matthew Sigel criticized at-the-market programs that become dilutive when stock prices approach Bitcoin’s net asset value. He portrayed the growing treasury strategy as an unsustainable bubble.

Despite corporate treasury sustainability facing scrutiny, over 287 firms now hold over 3.64 million Bitcoin combined.

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