Capital B launches a perpetual credit instrument modeled after Strategy: a new era of corporate bitcoin accumulation
French investment company Capital B is preparing for a major expansion of its bitcoin strategy, announcing the launch of a credit instrument inspired by Strategy's STRK model. As reported by Capital B's Director of Bitcoin Strategy, Alexandre Leze, a key shareholder meeting on this matter is scheduled for June 17.
On the agenda is the approval of a mandate to increase the authorized capital to €5 billion, as well as the issuance of credit instruments with a nominal value of up to €100 billion. These mechanisms will be used to accelerate the accumulation of bitcoin on the corporate balance sheet. This involves perpetual preferred shares with variable returns, similar to Strategy's STRK product: their rate is adjusted so that the securities trade near the $100 par value.
As of June 1, Capital B and its subsidiary Capital B Luxembourg SA already held 3,139 BTC. This makes the company a notable player in the corporate bitcoin reserves market, although its scale still lags behind giants like MicroStrategy. However, with the planned raising of up to €100 billion, Capital B could significantly alter the landscape of institutional accumulation of the first cryptocurrency.
Analytical commentary: The model of perpetual preferred shares with floating returns is an elegant way to attract long-term capital without diluting common shares. For a bitcoin strategy, such an instrument is particularly effective, as it allows the company to increase reserves without worrying about short-term price volatility. If Capital B successfully implements the plan, it could trigger a wave of imitators among European companies seeking to diversify their treasury assets towards bitcoin.