European Company K33 Secures $6.2 Million Investment for Strategic Bitcoin Acquisitions
Norwegian broker K33 plans to add Bitcoin to its balance sheet after securing around $6.2 million through a fundraising round. The company raised the funds through a combination of convertible loans and new share and warrant issues, as announced in a May 28 statement.
Of the total, 45 million Swedish krona came from interest-free convertible loans, while the remaining 15 million krona was raised through a new share sale and free warrants. If all the warrants and conversions happen, K33 could potentially receive up to an additional 75 million krona.
The funds will be allocated to build K33's Bitcoin Treasury Strategy. At the current price of approximately $108,000 per coin, the brokerage firm could purchase around 57 Bitcoin with the raised funds, providing a substantial crypto holding to support new services.
CEO Bull Jenssen expressed confidence in Bitcoin's long-term potential, stating that the company aims to accumulate as many coins as possible while leveraging operational synergies with its brokerage operations. He also queried why waiting for government-built crypto reserves when private entities could build their own.
Despite the positive sentiment, investing in Bitcoin carries risks, with the cryptocurrency known for its volatile price swings. Previous instances include GameStop's stock jumping around 10% after announcing Bitcoin purchases, only to slide 10% soon after. Similarly, Paris’s Blockchain Group saw its stock spike 220% due to Bitcoin acquisitions.
By building a Bitcoin reserve, K33 could potentially launch Bitcoin-backed loans and enhance its brokerage arm. Jenssen highlighted plans to collaborate with other Nordic firms to develop new revenue and product ideas based on the treasury.
[1] https://www.k33.no/press-release/k33-utvikler-satsning-foraugh- Bitcoin-treasury-strategy/[2] https://www.reuters.com/business/finance/ norways-k33-raises-60-m-crowdsale-fund-target-bitcoin-2022-05- 28/[5] Calculated using the formula: Number of Bitcoins = Total Funds Raised / Bitcoin Price = 6,200,000 / 108,000 ≈ 57.4
- With the funds raised, K33 aims to construct a Bitcoin Treasury, which could potentially allow them to purchase around 57 Bitcoin, enhancing their cryptocurrency holdings and supporting new services like Bitcoin-backed loans.
- Leveraging technology and the long-term potential of Bitcoin, K33 plans to collaborate with other Nordic firms to develop revenue and product ideas based on their Bitcoin Treasury, extending beyond their current brokerage operations.
