Norwegian crypto brokerage firm K33 has recently announced its plans to bolster its Bitcoin holdings by raising 60 million Swedish krona (approximately $6.2 million). The company aims to follow the footsteps of other public companies venturing into the cryptocurrency space by establishing a Bitcoin Treasury Strategy. K33 secured the financing through a combination of convertible loans and a new share and warrants issuance.

With this funding, K33 intends to acquire up to 57 Bitcoin at the current market price, which stands at just over $108,000 per Bitcoin. The CEO of K33, Bull Jenssen, expressed his strong belief in Bitcoin's potential as the best-performing asset in the upcoming decade. He emphasized the company's commitment to accumulating Bitcoin and leveraging operational synergies with its existing brokerage operations.

Jenssen highlighted the proactive approach of K33 in building its Bitcoin reserve, rather than waiting for government initiatives. The convertible loans, totaling 45 million Swedish krona, are interest-free and are set to mature by June 30, 2028. The remaining 15 million Swedish krona will be raised through a new share issuance and warrants, with the possibility of additional funding up to 75 million Swedish krona if all warrants are exercised.

In its first-quarter interim report released on May 28, K33 outlined its expansion plans, which include collaborating with other Bitcoin treasury companies in the Nordic region. The company aims to leverage its Bitcoin holdings to introduce new services like BTC-backed lending. Jenssen emphasized that Bitcoin is not only a high-conviction asset for K33 but also a strategic enabler that will enhance its financial position and drive new revenue streams and partnerships.

Despite the announcement of its Bitcoin treasury strategy, K33's stock price remained stable, closing down 1.96% on May 28. The company is closely monitoring the market response, as other firms like GameStop and Blockchain Group have experienced fluctuations in their stock prices following similar Bitcoin investment plans.

Overall, K33's decision to allocate a significant portion of its funding to Bitcoin reflects a growing trend among public companies to diversify their asset portfolios with cryptocurrencies. As more companies recognize the potential of digital assets like Bitcoin, the mainstream adoption of cryptocurrencies continues to gain momentum across various industries.

Source: https://cointelegraph.com/news/european-crypto-firm-k33-raises-for-bitcoin-treasury?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound