Capital B Seeks Fresh Funding To Support Bitcoin Treasury Flywheel

Capital B adopted Michael Saylor's "never sell Bitcoin" thesis.  "Our objective is to hold Bitcoin forever, never sell it and never lose it," Alexandre Laizet, director of bitcoin strategy at Capital B, told Sandmark. Yet, just like Saylor's Strategy – the first Bitcoin treasury company – which has begun selling some of its holdings under declining BTC prices, Laizet conceded the company may "use assets" if its obligations demand it.

Midway through their projected timeframe, the company has achieved 21% of its acquisition goal, holding 3,139 BTC at an average price of €90,418 per BTC, against a market price near $64,000 on 20 Jul. The holdings make Capital B Europe's second-largest publicly listed corporate Bitcoin holder, trailing only Germany's Bitcoin Group SE at 3,605 BTC, according to BitcoinTreasuries.net. The company's analytics dashboard puts the return on that deployed capital at -86.2%.

With the price of Bitcoin almost half of its all-time high set in October 2025 and the company's stock price mirroring that drop, Capital B, along with other treasury companies in the European bloc, are now turning to other methods to expand their potential investor pool.

The reverse split

On 20 Jul, Capital B announced a 10-for-1 reverse stock split, with the new shares trading on Euronext Growth Paris from 8 Sep. 

The company's shares closed at €0.48 on 20 Jul, below the €0.86 exercise price of the lowest-priced warrant class issued in May. The stock reached an all-time high of €5.96 on 15 Jun 2025 and last traded above €1 in October that year.

Speaking to Sandmark hours after announcing the reverse stock split, Laizet described the move as an attempt to remove a structural barrier for investors rather than a response to the decline in Capital B's share price. He noted that the stock remained well above the €0.10 level at which the company launched its Bitcoin treasury strategy a year earlier. 

"The objective is to open the stock to a broader range of investors, institutional investors that literally cannot access the stock right now because of the price range we are in," he said, pointing to investment mandates that explicitly or implicitly exclude stocks trading below $1 and, in some cases, below $3 to $5. "This is a purely technical adjustment."

The move follows the same strategy of Bitcoin treasury companies Metaplanet and Strive, which both carried out reverse splits in the past year. "Both companies, after a few months, have had neutral to positive impacts," Laizet said of Metaplanet and Strive.

Laizet said he saw a nearer-term benefit beyond mandate screens, noting that some institutions assign higher margin and collateral value to shares trading above the $1 to $5 range, which he said "can also be a source of potential additional liquidity."

However, reverse splits have more commonly been used to address financial or listing pressures than to support expansion. Bitcoin treasury company Nakamoto carried out a share consolidation in May to preserve its Nasdaq listing after its stock fell from a peak of $22.64 to $0.19. Such moves can also be viewed as a warning sign that a company is struggling to restore investor confidence after a steep decline.

While Capital B faces no equivalent listing requirement, its approach signals a search for fresh capital. 

Courting credit

Along a similar vein, Capital B and other treasury companies are turning to credit products as a possible option to increase capital flows. 

In a separate interview at BTC Prague in June, Laizet said Capital B was considering a Bitcoin-backed credit product modelled on preferred shares issued by Strategy and Strive. "Our objective since the beginning has been to deploy the Strategy playbook at European scale," he told Sandmark this week.  

STRC, Strategy's variable-rate perpetual preferred stock, has come under pressure as its price fell below the $100 level it is designed to maintain, even with a 12% annual dividend. The structure amounts to raising equity like a growth startup to pay dividends, a model dependent on continued Bitcoin appreciation and investor demand.

Laizet maintained his belief that a preferred stock could be a sustainable option despite the volatility, stating that "a rate of increase of Bitcoin of about 2% or 3% per year on average enables Strategy to pay the dividends forever," a low bar against fiat currencies he said debase at around 7% annually. "The risk is basically the failure of Bitcoin. The risk is that Bitcoin goes to zero forever," he said. 

"We see that investor interests in those products are not affected by the recent volatility that we have seen in STRC and SATA," he continued. "Investors even believe that there are opportunities in this market." 

Shareholders in June authorized up to €5bn in nominal capital increases and €100bn in credit instruments, giving Capital B substantial capacity to seek further financing for Bitcoin purchases. 

While Capital B considers their options, another European firm has pipped them for the post on launching a product. On the same day as Capital B's announcement of the reverse split, Stockholm-based Bitcoin Treasury Capital AB listed Europe's first Bitcoin-backed preferred stock on the Spotlight Stock Market, paying a 10% annual dividend at its SEK 120 issue price (about $12.40).

Reaching 15,000 BTC

The near-term path towards Capital B's 2027 target remains dependent on instruments already in place, Laizet said. He described the goal as a range of 7,000 to 15,000 BTC, rather than the firm 15,000 BTC target stated on the company's website, and said the reverse stock split was part of a longer-term strategy.

Laizet said about €130mn could be raised through outstanding warrants if Capital B’s share price recovers enough for investors to exercise them. He also cited the company’s capacity to use credit instruments and its previous issuance of Bitcoin-denominated notes.

However, much of it rests on the recovery of the Bitcoin price, which he sees as inevitable. Bitcoin, according to Laizet, is in a bottoming phase from which it has risen sharply from in the past. 

Bitcoin traded near $65,350 at 20:36UTC on 20 Jul, gaining 1% on the day. The move extended its July recovery, with the cryptocurrency now about 11% above its 1 Jul low of $58,821. Even so, Bitcoin remains down 25% in 2026.

When asked whether Capital B would ever diversify into another cryptocurrency, Laizet did not hesitate. "No, never. Bitcoin only. We work for Bitcoin. It's the best there is. No second best."