ADAM BACK BUYS INTO THE SAME FRENCH BITCOIN COMPANY TWICE IN FIVE DAYS — 52.7 MILLION WARRANTS CAME WITH IT — THE ROAD TO 27.8 PERCENT COSTS HIM NOTHING UNTIL THE STOCK MOVES
Capital B is a public company in Paris that raises money and buys bitcoin with it, the same trade Strategy runs in America. We wrote about its €21 million round on August 28. Five days later Adam Back came back with €7.6 million more, at the same €0.58 a share, a 15.4 percent premium to the prior close. Buying twice at one price inside a week is not a man testing a position. That is a man filling one.
Then read the terms, because that is where the story is. The 13,181,030 new shares came with four warrants each. That is 52.7 million warrants, good for five years, at €0.75, €0.98 and €1.27. A warrant is the right to buy a share later at a price fixed today. It costs nothing to hold and it only pays if the stock goes up. His stake is 17.77 percent now. Exercise all of it and he is at 27.8 percent of a listed company.
One number to handle carefully. The figure that ran everywhere today, 376 more coins to reach 3,521, counts both raises together and leans on the company's own operations besides. Our August 28 piece put the first tranche near 270. The gap between the two published targets is about 106 coins. That is what this check is really adding.
The man who built Hashcash does not need a French holding company to own bitcoin. He can buy bitcoin any morning he likes. What he is buying here is a larger claim on a company that buys it for him, with the upside stacked in paper that only pays if the market agrees. Capitalist.
Then read the terms, because that is where the story is. The 13,181,030 new shares came with four warrants each. That is 52.7 million warrants, good for five years, at €0.75, €0.98 and €1.27. A warrant is the right to buy a share later at a price fixed today. It costs nothing to hold and it only pays if the stock goes up. His stake is 17.77 percent now. Exercise all of it and he is at 27.8 percent of a listed company.
One number to handle carefully. The figure that ran everywhere today, 376 more coins to reach 3,521, counts both raises together and leans on the company's own operations besides. Our August 28 piece put the first tranche near 270. The gap between the two published targets is about 106 coins. That is what this check is really adding.
The man who built Hashcash does not need a French holding company to own bitcoin. He can buy bitcoin any morning he likes. What he is buying here is a larger claim on a company that buys it for him, with the upside stacked in paper that only pays if the market agrees. Capitalist.
THE BLOCK · Wed Sep 2 · 8:31 AM ET · + COINDESK Sep 2 · + CRYPTO.NEWS Sep 2 · anchor: our Aug 28 €21M story