Capital B’s €21 million Bitcoin raise comes with heavy warrant dilution risk

Bitcoin treasury company Capital B plans to raise €21 million and use the proceeds, along with operating funds, to buy another 270 Bitcoin.The immediate deal would leave the company’s stated measure of Bitcoin backing per diluted share almost unchanged, while four warrants attached to each new share create a larger layer of contingent dilution.The company announced a private placement of 36,219,070 shares with attached warrants at €0.58 per unit. That would produce €21.01 million in gross proceeds and an estimated €19.9 million after fees.Closing was expected on Aug. 31 at the earliest, meaning neither the shares nor the planned Bitcoin purchase was complete when the deal was announced. Capital B said the proceeds and operating funds could lift its treasury from the 3,145 BTC confirmed on Aug. 17 to a potential 3,415 BTC.The immediate Bitcoin-per-share math is flatOn the diluted shareholder bases displayed in Capital B’s Aug. 28 release, the company had about 7.4725 BTC per million shares before the placement. Combining the proposed 3,415 BTC with the post-placement diluted count of 457,096,891 shares produces about 7.4711 BTC per million shares.That is a decrease of roughly 0.02%,...