So while the market is freaking out over institutional sell-offs, there's this wild story happening in Europe. A company called Capital B, listed in France and worth about $166 million, has thrown out this outrageous idea to raise $122 billion to buy more Bitcoin. They've got roughly 3139 BTC, which is nothing compared to MSTR's huge 843,706 BTC. Seriously, Capital B is just a tiny blip next to the giant MSTR. They didn't even mention MSTR in their proposal, but I had to bring it up here.
When you compare it to MSTR, it kinda puts things in perspective about whether this is actually good news or just some hype. It feels like they could be trying to create a false sense of hope in the market for some shady reasons.
Anyway, before anyone starts asking what’s going on and trying to wrap their head around this madness, check this out: they're looking to raise capital that’s 760 times their entire market value. If they somehow pull this off, they'd overtake MSTR, which has a whopping $57 billion in Bitcoin.
Capital B plans to put this proposal to a vote on June 17th during their General Meeting. You can see the full proposal in the image below.
Right now, their shares are around $0.55, and to raise the equity part of €5 billion, they would need to create 125 billion new shares. Historically, that kind of share influx would seriously dilute what current shareholders own.
Actually public companies usually ask shareholders to authorise large Issuance
It doesn't mean the money would appear the next day
Or that bank would provide them such amount
After approval the real challenge if finding such capital.
I would want to believe they won't want to use common stocks
They can use convertibles or preferred stocks.
The 100 billion EUR is a delegation to issue credit instruments and only 5 billion is the equity portion, so they're not printing 125 billion shares to fund $122 billion in BTC, that ceiling just lets the board act without calling another meeting.
The dilution worry is real but only on whatever equity they actually tap, and good luck finding anyone to underwrite 100 billion of debt for a $166M company.
If you had not shared this analysis, then maybe bro I would have been surprised. I would also have compared it with MSTR because if someone is making such a bold move and wants to acquire more Bitcoin than BlackRock and MicroStrategy, then they have to be richer than them. But their market cap is nothing, and even the market they are in is not as big as Wall Street.
So if their agenda was to create fake hope and manipulation that the market is going to recover while it might dump, then this knowledge is enough for Bitcoiners to understand what they are doing. Nothing to speculate here. We are in a bear market, and news like this is meant to create FUD, nothing else.
Not proposing that I'm smarter than any of this but feels like the more realistic move would be to fundraise for a dip purchase gamble... either on Bitcoin to hit 40k or... 25k, which would be about 20% of ATH, like all bottoms have come to. And then to buy so and so amount of BTC. If price not hit, then funds returned.
But hey, what do I know?
$40k is possible but $25k is too low and I think it's impossible. In the last bear market, it was a first time Bitcoin dipped below all time high of a previous market cycle, so it's possible for a second time in Bitcoin history with this ongoing bear market. That's a reason I think $40k is a possible bottom price or bottom area for Bitcoin, while $25k is too too low, and I don't think about it.
Regarding to the proposal of Capital B, I don't know why they came to this crazy idea.