While everyone’s freaking out about institutional sell-offs, there’s this wild story brewing in Europe. Capital B, a company listed in France, has a market cap of just $166 million and they wanna raise a whopping $122 billion to buy more Bitcoin. They've got about 3139 BTC, but compared to MSTR's 843,706 BTC, it’s like a drop in the ocean. The proposal? They didn’t even mention MSTR, but I had to point that out here.
Public companies often ask their shareholders for big issuances, but that doesn't mean the cash is just gonna show up overnight. It might take a while to find that capital, and honestly, I doubt they wanna use common stocks. Maybe convertibles or preferred stocks could be a better route.
Just to clarify, the 100 billion EUR is more about issuing credit instruments; only 5 billion is actual equity. So they’re not printing 125 billion shares just for this BTC buy. That limit lets the board act without needing another meeting. But yeah, dilution is a real concern for whatever equity they actually tap. Good luck getting someone to underwrite 100 billion in debt for a $166 million company.
Honestly, if you hadn’t laid out that analysis, I’d be shocked. They wanna buy more Bitcoin than BlackRock or MicroStrategy, but their market cap is tiny. If this is just a ploy to create false hope while the market tanks, Bitcoiners need to see through it. No need to guess here.
Not saying I'm a genius or anything, but wouldn’t it make more sense to raise funds for buying a dip? Like, maybe aim for Bitcoin to hit $40k or even $25k? That’s about 20% of the all-time high. If the price doesn’t hit, just return the funds. But what do I know?
$40k seems doable, but $25k is pushing it. Last bear market saw Bitcoin dip below the previous ATH for the first time, so it could happen again, but I really doubt it’ll go down to $25k. As for Capital B, I can’t wrap my head around why they’d even suggest something so outlandish.