Capital B has added 376 bitcoin to its corporate treasury, paying $29.4 million for the coins. The purchase brings the firm's total holdings to 3,521 BTC. The company also closed a $33.3 million private placement, with participation from Adam Back and TOBAM.
The purchase
The acquisition was disclosed this week. Capital B spent $29.4 million to buy 376 bitcoin, an average price of roughly $78,191 per coin. That's a notable sum for a company that's already sitting on a large stack of the cryptocurrency.
The firm's treasury now holds 3,521 BTC. That's a meaningful position for any corporate balance sheet, and it puts Capital B among the larger bitcoin holders among publicly traded companies.
Below cost
There's a catch, though. The market value of Capital B's bitcoin holdings remains below the accumulated cost. In plain terms, the company is underwater on its bitcoin investment. That doesn't mean the strategy is failing — bitcoin's price has been volatile, and many long-term holders have seen drawdowns before recovery. But it's a fact the company will have to address in its next earnings report.
The gap between market value and cost isn't unusual in the crypto space. But for a company that's actively buying more, it raises questions about timing and conviction.
Fresh capital
To fund the purchase and other initiatives, Capital B raised $33.3 million through a private placement. The round included Adam Back, the CEO of Blockstream, and TOBAM, an asset management firm. The company didn't say how the proceeds would be used, but the timing suggests the bitcoin buy was at least partly funded by this raise.
The placement gives Capital B more runway to execute its strategy, whatever that may be. It also brings in notable names from the crypto and traditional finance worlds, which could signal confidence in the company's direction.
What's next? Capital B hasn't said whether it plans to keep buying bitcoin. The company's next earnings call will likely shed light on its thinking, and on how it plans to handle the gap between its cost basis and the current market price.
