Euro-denominated Bitcoin company Treasury Raises €126 Million
Euro-denominated Bitcoin company Treasury has secured an initial funding of 126 million euros ($147 million) in a private round led by Winklevoss Capital and Nakamoto Holdings.
As per a Wednesday announcement, the funds have been utilized to acquire over 1,000 Bitcoin (BTC), initiating its Bitcoin treasury. Treasury aims “to be the first Bitcoin treasury company listed on a primary European exchange.”
The company plans to enter the Euronext Amsterdam stock exchange through a reverse listing by merging with lender MKB Nedsense. This reverse listing allows private companies to obtain stock exchange listings without fulfilling the conventional requirements by merging with already-listed entities.
Khing Oei, founder and CEO of Treasury, said that the company intends to utilize future equity issuance and convertible debt to enhance its Bitcoin holdings. The announcement emphasizes that it will use “both equity and debt to accumulate Bitcoin as its primary reserve asset.”
With an initial allocation of 1,000 BTC, Treasury quickly positioned itself among Europe’s notable corporate Bitcoin holders. Based on data from BitcoinTreasuries.NET, Germany’s Bitcoin Group stands as Europe’s top corporate Bitcoin treasury, holding 3,605 BTC valued at approximately $400 million at the time of writing.
Following closely is French company Sequans Communications with 3,205 BTC worth about $356 million and the UK-based The Smarter Web Company, which holds 2,440 BTC valued at $270 million. The landscape of European Bitcoin treasury firms is becoming increasingly competitive, as Dutch cryptocurrency service provider Amdax has recently announced plans to launch a Bitcoin treasury company on Amsterdam’s Euronext stock exchange, similar to Treasury.
Related Insights on the Bitcoin Treasury Model
While the Bitcoin treasury model is growing in popularity, it is also facing criticism. A recent report from venture capital firm Breed suggested that only a select few of these companies will endure over time and avoid a “death spiral” that could adversely affect BTC holding firms trading too close to their net asset value.
Oei expressed concerns about excessive leverage, considering it a high risk. He stated:
Still, as reported recently, while the number of Bitcoin treasury firms continues to rise, some companies in this space have struggled to meet expectations. Josip Rupena, CEO of lending platform Milo and former Goldman Sachs analyst, remarked in late August that crypto treasury firms bear risks akin to those of the collateralized debt obligations that precipitated the 2007-08 financial crisis.
