Capital B launches a perpetual instrument modeled after the Strategy approach: a new era of corporate bitcoin accumulation
French investment company Capital B is preparing to launch a credit instrument inspired by the STRC model used by the well-known US issuer Strategy. This decision marks another step in the institutional adaptation of Bitcoin as a corporate asset.
According to the plans, a key shareholder meeting will take place on June 17. On the agenda is approval of a mandate to increase the authorized capital to €5 billion and issue debt instruments worth up to €100 billion. Such a scale indicates the company's serious intentions to accelerate its Bitcoin strategy without resorting to traditional bank loans.
The new instrument is based on a mechanism similar to Strategy's .STRC: perpetual preferred shares with floating yield. Their rate is adjusted so that the market price of the securities remains near the nominal value of $100. This approach provides flexibility and attractiveness for investors, while allowing the issuer to increase cryptocurrency reserves without immediate capital dilution.
As of June 1, the combined portfolio of Capital B and its subsidiary Capital B Luxembourg SA amounted to 3,139 BTC. This is a relatively modest volume by the standards of major players, but the launch of the new instrument could radically change the situation. If shareholders approve the proposal, Capital B will gain a powerful lever for large-scale Bitcoin purchases, potentially becoming one of the largest corporate holders in Europe.
My analysis: This move is a vivid example of how institutional investors are adapting successful models from the US to European realities. However, Capital B's success will depend on its ability to raise capital at an acceptable cost amid high Bitcoin volatility. If the mechanism works, we will see a wave of imitators among medium and large European companies, which will put additional pressure on BTC supply.