Norwegian crypto firm K33 said Wednesday it plans to raise a minimum of 85 million Swedish krona ($8.9 million) through a share issue for its plan to purchase up to 1,000 Bitcoin for its company reserves.
According to its announcement, K33 has appointed Pareto Securities as its manager and bookrunner for the share issue. The subscription price per share is $0.011. K33 expects to issue at least 820 million shares.
“The net proceeds from the Directed Share Issue will be used to buy Bitcoin […] to hold on the balance sheet,” the company said. The move follows K33’s earlier announcement that it secured financing to acquire up to 57 Bitcoin (BTC) in late May.
K33 also said the Bitcoin exposure will also “unlock real operational leverage for the Company as a broker.”
The company expects the holdings to improve its margins, enable new product offerings and strengthen its appeal for institutional customers. As part of the initiative, K33 confirmed the purchase of 5 BTC on Tuesday, worth roughly $523,000 at the time.
Related: Europe’s first Bitcoin treasury firm buys another $20M BTC, now holds over $170M
Funds raised through share issue
The company added that the share offering will not be distributed in the United States, Canada, Australia, Russia, South Korea, or in any other jurisdiction where it would be illegal to offer the product.
K33 CEO Torbjørn Bull Jenssen said the fundraising is a step toward acquiring 1,000 BTC, with plans to grow the Bitcoin treasury further in the future:
“A strong balance sheet built on Bitcoin enables us to significantly improve our brokerage operation while maintaining full exposure to Bitcoin’s upside potential.”
Related: New Bitcoin treasuries may crack under price pressure
Norwegian firms jump into Bitcoin
K33’s move follows a broader trend among Norwegian companies investing in Bitcoin. Earlier this month, Norwegian Block Exchange saw its stock jump more than 138% in a single day after announcing it would begin holding Bitcoin on its balance sheet.
Aker ASA, a Norwegian industrial holding company, created a subsidiary called Seetek in 2021, which is entirely dedicated to investing in Bitcoin and holding cryptocurrencies. BitcoinTreasuries.NET data shows that this subsidiary now holds 754 BTC, worth over $63 million at the time of writing.
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