According to Cointelegraph, Blockstream CEO Adam Back has spearheaded a 21 million Swedish krona ($2.2 million) funding round for the Swedish health tech company H100 Group AB. The company announced its intention to purchase Bitcoin with the funds, which were secured through 0% interest convertible loans. This move aligns with H100's recent pivot towards Bitcoin acquisition, as declared on May 22.
Adam Back, a prominent figure in the Bitcoin community, contributed approximately $1.4 million to the funding round. The remaining $800,000 was provided by investment firms including Morten Klein, Alundo Invest AS, Race Venture Scandinavia AB, and Crafoord Capital Partners. The capital raised is expected to enable H100 to acquire around 20.18 Bitcoin at current market prices, adding to the 4.39 Bitcoin it purchased on May 22. This would bring H100's total Bitcoin holdings to approximately 24.57 Bitcoin.
The convertible loans, which bear no interest, are set to mature on June 15, 2028. They can be converted into shares at any time at a conversion rate of 1.3 Swedish krona (11 US cents) per share. If H100's share price maintains a volume-weighted average price exceeding 33% above the conversion price for a cumulative total of 60 trading days, the company reserves the right to mandate a conversion of the loan into equity. A full conversion would result in the issuance of approximately 16,153,900 new shares, leading to a dilution of about 12%.
Following the announcement of its Bitcoin acquisition strategy on May 22, H100's shares surged by 37% and increased by an additional 5.33% the next day, reaching 1.29 SEK (14 US cents), according to Bloomberg data. H100, which provides health tools for individuals seeking alternatives to the "reactive health system," is led by CEO Sander Andersen. Andersen expressed that the values of individual sovereignty prevalent in the Bitcoin community resonate with the customers and communities H100 aims to serve.
H100's decision marks it as the first public company in Sweden to adopt a Bitcoin treasury policy, and one of the pioneers in Europe. The trend of companies purchasing Bitcoin as a treasury asset is growing, with 112 public firms now holding the cryptocurrency, according to BitcoinTreasuries.NET data. Among these, ten are based in Europe, positioning H100 as an early adopter in the region.
