What to know:
- Capital B Bitcoin plans a European credit product backed by its treasury holdings.
- Laizet said the product targets double-digit yields with lower volatility levels.
- Capital B aims for 15,000 BTC by 2027 and 1% of Bitcoin supply by 2033.
Capital B Bitcoin plans gained attention after board director Alexandre Laizet said the Paris-listed treasury firm is developing a Bitcoin-backed credit product for Europe. He spoke in an interview with The Block at BTC Prague. The company has not set a launch date.
Laizet added that the planned Capital B Bitcoin instrument follows the model of the Strategy’s STRC and Strive’s SATA. He said it was a digital credit product for European conditions and a potential European launch. He cited high taxes, security concerns, and outdated rules.
Also Read: Strive Bitcoin Acquisition Expands Treasury With 73 BTC Deal
Capital B Bitcoin Product Targets European Investors
The Capital B Bitcoin product would be based on the company’s own Bitcoin holdings. The aim is to achieve yields of more than double digits with volatility of less than double digits, said Laizet. Capital B currently has 3,139 BTC in its treasury.
Laizet stated the company is looking for a European market solution for European investors. He said the area needs financial regulations that are not meeting the digital age. He presented the project as part of Capital B’s stated responsibility.
The Capital B Bitcoin plan also comes with rising investor interest. Compared to last year, the number of investors interested in digital credit has increased 10 times, Laizet said. He did not name or capitalize any figures.
According to Laizet, Bitcoin treasury companies can offer different return support compared to conventional issuers. He said conventional finance would need decades of cash flow to promise double-digit performance. He claimed that the Bitcoin treasuries already have appreciating assets.
He said Bitcoin plays a central role on the company’s balance sheet. Those assets can increase 30% to 60% a year, said Laizet. He leveraged that perspective to clarify why the design can be sustainable.
Capital B Bitcoin Plan Carries Custody Risks
Laizet pointed to Strategy as one market example. Strategy sold 32 BTC to pay STRC dividends, he said. The company later purchased 1,587 BTC.
The Capital B Bitcoin instrument carries clear risks, according to Laizet. He referred to devaluation of Bitcoins, execution issues, custody issues, and counterparty exposure. The company only deals with regulated banks, he said.
Laizet also added that Capital B boasts expertise in capital markets, banking, technology, and corporate finance. The probability of Bitcoin plummeting to zero is almost zero, he said. He did not remove the risks linked to product delivery.
Capital B trades on Euronext Growth Paris with the ticker symbol ALCPB. The firm calls itself Europe’s first and largest Bitcoin treasury company. The company is backed by Bitcoin experts such as Bitcoin investor Adam Back and Fulgur Ventures.
The Capital B Bitcoin targets remain larger than the proposed credit product. According to its website, the company aims to accumulate 15,000 BTC by the end of 2027. It also aims to accumulate 1% of Bitcoin’s total supply by 2033.
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
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