The Norwegian crypto firm K33 received 60 million Swedish kronor to create a Bitcoin treasury. The company aims to follow the example of other public firms that have added Bitcoin to their balances.
K33 raised funds through convertible loans and new shares. The total amount of loans was 45 million kronor. The issuance of shares brought in 15 million kronor. All proceeds will go towards purchasing Bitcoins.
K33 can buy up to 57 BTC at the current price of around $108,000. The company has confirmed this move as a new strategic focus. It plans to use Bitcoin to strengthen its balance sheet and offer new services.
K33's strategy reflects a growing trend among global companies. Several firms are adding Bitcoin to their treasury obligations amid rising institutional interest. The CEO of K33 highlighted the role of Bitcoin in supporting the firm's operational and financial goals.
The interest-free convertible loans are due on June 30, 2028. Investors received interest-free warrants along with the purchase of shares. These warrants allow them to convert into shares at the same price in the future.
Investors who convert their warrants by March 2026 will receive additional warrants at the same conversion rate. If fully executed, K33 could raise up to 75 million kronor.
The main participants in the funding round were insiders and strategic investors. Among them were Klein Group and Modiola AS. These sponsors supported K33's long-term strategy.
With a significant reserve of Bitcoins, K33 plans to expand its offerings. The firm is working with other Bitcoin treasury companies in Northern Europe. It also aims to explore Bitcoin-backed lending and other financial products.
K33 described Bitcoin not only as an asset but also as a strategic tool. It expects its Bitcoin assets to open new revenue channels and partnerships. This move could enhance its appeal to institutional clients.
K33's shares reacted moderately to the announcement. Shares traded at previous levels before dropping by 1.96% by the end of May 28, according to Google Finance. The market reaction showed cautious optimism.
Other companies have seen volatile reactions to similar Bitcoin strategies. GameStop saw a rise in shares after announcing its Bitcoin purchase. However, prices later fell after the actual purchase.
In contrast, shares of Blockchain Group soared after it began accumulating Bitcoin. Its share price jumped by 225% shortly after its initial Bitcoin purchase in November.
K33 joins a growing list of companies adopting Bitcoin as a treasury asset. On the same day, Japan-based Metaplanet issued bonds worth $50 million to increase its Bitcoin reserves.
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What do you think, is this a new trend??!
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