Capital B gives green light to 1-for-10 reverse share consolidation to expand institutional reach

Capital B gives green light to 1-for-10 reverse share consolidation to expand institutional reach

The French firm, ranking as Europe's second-largest holder of Bitcoin in corporate treasuries, expects the September reverse split to draw greater interest from institutional investment firms.

Europe's second-largest Bitcoin treasury company, Capital B, has decided to move forward with a share consolidation plan involving a 10-for-1 reverse stock split designed to expand its appeal among institutional investment firms.

The share consolidation will bring down the total number of outstanding shares to approximately 30.1 million from the current 300.7 million. Every new share will substitute 10 pre-existing shares and hold a par value of 0.80 euros ($0.90), compared to the previous 0.08 euros, according to Capital B's Monday announcement.

The company, which trades on Euronext Growth Paris, indicated that the share conversion will take place automatically on Sept. 8 while maintaining the total value of existing investor positions unchanged.

According to Capital B, the strategic decision aims to bolster its institutional growth trajectory and attract a broader range of institutional investors.

In the previous month, the company's shareholders granted approval for financing capacity reaching up to 105 billion euros to facilitate the company's strategy of acquiring Bitcoin.

At the time of writing, Capital B maintains a position of 3,139 Bitcoin. Among European corporate holders, Germany's Bitcoin Group SE maintains the largest position, controlling 3,605 BTC, based on data from Bitcoin Treasuries.