A new Euro-denominated Bitcoin company, Treasury, has officially launched with a significant initial funding of 126 million euros ($147 million). The private funding round was spearheaded by prominent investors Winklevoss Capital and Nakamoto Holdings. With this capital, Treasury has acquired over 1,000 Bitcoin (BTC), positioning itself as a major corporate Bitcoin holder in Europe and aiming for a listing on the Euronext Amsterdam stock exchange via a reverse merger with lender MKB Nedsense.
Key Takeaways
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Treasury secured €126 million ($147 million) in its initial funding round.
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The company has purchased over 1,000 BTC to establish its treasury.
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Aims to be the first Bitcoin treasury company listed on a primary European exchange.
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Plans to list on Euronext Amsterdam through a reverse listing by merging with MKB Nedsense.
European Bitcoin Treasury Landscape
Treasury's acquisition of 1,000 BTC places it among Europe's leading corporate Bitcoin holders. Currently, the German firm Bitcoin Group holds the top spot with 3,605 BTC, followed by France's Sequans Communications with 3,205 BTC, and the UK's The Smarter Web Company with 2,440 BTC. The European market for Bitcoin treasury companies is experiencing growth, with other firms like Amdax also preparing to launch similar ventures on the Euronext stock exchange.
Future Strategy and Market Risks
Treasury's founder and CEO, Khing Oei, indicated plans to expand its Bitcoin holdings through future equity issuance and convertible debt, emphasizing Bitcoin as its primary reserve asset. Oei also highlighted a cautious approach to leverage, stating that Treasury's current capital market strategy incorporates lower leverage percentages compared to its peers. This comes amid broader discussions about the sustainability of the Bitcoin treasury model. A report by venture capital firm Breed suggested that many such companies might struggle to survive, warning of a potential "death spiral" for firms trading too closely to their net asset value. Concerns have also been raised by industry figures comparing the risks of crypto treasury firms to collateralized debt obligations that contributed to the 2007-08 financial crisis.
Sources
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Winklevoss-backed 1,000 BTC Treasury to launch on Euronext, Cointelegraph.
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