What to know:
- H100 acquisition boosts the company’s Bitcoin holdings to 3,506 BTC after adding 2,455 BTC from Norwegian firms.
- The $155 million deal was completed through 790.5 million newly issued shares, avoiding a cash outflow.
- The transaction diluted existing shareholders by around 70% due to the large share issuance.
The H100 acquisition of Norway-based Bitcoin businesses has increased H100 Group’s Bitcoin portfolio to 3,506 BTC, which is more than three times its existing Bitcoin treasury. Through this transaction, H100 has increased its balance sheet by 2,455 BTC, and the transaction did not involve any cash outflow.
This deal was officially completed by H100 Group in a press statement on Monday. Instead of cash payment, the corporation offered 790.5 million new shares to the selling party. The price for each share was set at 1.86 Swedish krona ($0.20), which translated to the total value of the deal being approximately 1.47 billion krona, or $155 million.
The acquisition of H100 also meant dilution of existing shareholders. According to the company, the newly issued shares led to an increase in share count and thus diluted the shareholders by about 70%.
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H100 Acquisition Uses BTC-for-Bitcoin Structure
The H100 acquisition followed a 1:1 “Bitcoin-for-Bitcoin” arrangement. According to the agreement, the number of shares that will be allotted to the selling party depended on their share in the total Bitcoin held by H100 and the acquired firms.
According to H100, the calculations only involved the value of Bitcoin. Assets and liabilities of the acquired firms were not considered in determining the amount of shares to be distributed.
The deal provides H100 with a considerably larger Bitcoin portfolio and boosts its portfolio value up to $228 million, according to the company’s valuation.
H100 Moves Higher Among European Bitcoin Treasury Firms
With the H100 acquisition, H100 Group is now the second-largest Bitcoin treasury firm in Europe by Bitcoin holdings, according to BitcoinTreasuries.
This is because H100 currently holds 3,506 BTC and trails only Germany’s Bitcoin Group SE with 3,605 BTC. With the small difference between the two firms, H100 is one of the biggest corporate Bitcoin holders in Europe.
The substantial rise in the number of Bitcoin holdings has been one of the major milestones that H100 is pursuing by integrating its health-tech business with Bitcoin treasuries.
Deal Was First Announced in March
Plans for this deal were first disclosed by H100 in March, when it signed an LOI agreement for purchasing the Norwegian Bitcoin companies Moonshot and Never Say Die as well as their Bitcoin assets.
As a result of this H100 acquisition, the company now has possession of the extra 2,455 BTC without having to pay out of its own cash balance.
The sellers benefit from receiving shares in H100 rather than receiving a cash payment, while H100 gets a much bigger share of Bitcoins. But due to the high number of new shares issued, current stockholders have become minority stockholders in the firm.
Given that its stock of Bitcoin has tripled, H100 is gearing up for the position of a leading corporate owner of Bitcoin in Europe.
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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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