- Adam Back invests in H100 Group with a focus on Bitcoin.
- Convertible loan structured for Bitcoin purchases.
- Potential 12 million new shares for H100 Group.
Adam Back, CEO of Blockstream, has provided a SEK 21 million convertible loan to H100 Group. This initiative is designed to facilitate the company’s acquisition of Bitcoin, thus expanding its cryptocurrency reserves significantly.
The convertible loan features zero interest with a five-year maturity period. The loan can be converted into shares, initially priced at SEK 1.75 per share, demonstrating Back’s strategic confidence in H100 Group’s vision.
The decision could substantially impact the corporate treasury landscape as more companies might follow suit in acquiring Bitcoin. H100 Group aims to utilize the proceeds exclusively for Bitcoin, aligning with a growing trend among firms.
Equity dilution is a possible consequence for existing shareholders, with a potential issuance of 12 million new shares. However, this aligns with trends seen in companies like MicroStrategy, with corporate assets being increasingly diversified into Bitcoin.
Over time, if tranches are exercised, the investment could rise to approximately $25.5 million. H100 Group is poised to see a substantial increase in its Bitcoin holdings as a result.
The move reflects a broader corporate trend of integrating Bitcoin into financial strategies. This could potentially inspire similar actions from smaller enterprises and start-ups seeking to diversify their financial portfolios amid crypto’s rising prominence.
“We have been around since 2014 and we work with our investors to put Bitcoin in a balance sheet back then and since then.” – Adam Back, CEO, Blockstream. source
