French firm Crypto Blockchain Industries announces a major expansion of its Bitcoin treasury holdings in an all-equity deal.
Summary
- CBI announces an all-equity deal for acquiring more Bitcoin reserves.
- SAFEbit plans to gradually exchange 2,000 BTC for CBI shares.
- Bitcoin treasuries are gaining traction globally.
Global firms are increasingly betting on Bitcoin (BTC) treasury holdings. On Friday, August 1, Paris-listed Crypto Blockchain Industries and its shareholder Ker Ventures announced an all-equity deal to buy 2,000 BTC from the Turkish crypto exchange SAFEbit.
The deal gives Ker Ventures and CBI the option to exchange CBI shares for the Bitcoin, in a transaction potentially worth more than €200 million. The swap price will be based on the two-day volume-weighted average price of CBI shares and the prevailing market rate for Bitcoin.
BCI opts for equity-financed Bitcoin purchases
An all-equity deal allows CBI to grow its Bitcoin reserves without spending cash. At the same time, it increases shareholder exposure to Bitcoin, further aligning the firm with a Bitcoin treasury strategy.
Companies like Strategy and Metaplanet acquire Bitcoin using both debt and equity, effectively turning their stocks into leveraged Bitcoin plays. While this approach can magnify gains, it also makes the shares more volatile than the underlying asset.
Equity-based purchases carry less risk in the event of a sharp Bitcoin downturn. However, these deals can significantly dilute existing shareholders. As a result, equity-financed treasury accumulations typically don’t drive the same short-term price reaction during Bitcoin bull runs.
Crypto Blockchain Industries, listed on Euronext Growth Paris under the ticker ALCBI, is a crypto gaming and non-fungible token company with existing Bitcoin treasury holdings. One of its largest shareholders, Ker Ventures, is owned by Frédéric Chesnais, who also serves as the CEO of CBI.
