K33's Bitcoin Treasury Expansion
K33 to Acquire 1,000 BTC for Treasury
Norwegian crypto firm K33 announced a plan to significantly expand its Bitcoin holdings. The company aims to purchase up to 1,000 Bitcoin, raising a minimum of 85 million Swedish krona ($8.9 million) through a share issue. Pareto Securities is managing the share issue, with a subscription price of $0.011 per share and at least 820 million shares expected to be issued.
The funds raised will be directly used to acquire Bitcoin and held on K33's balance sheet. This follows a previous acquisition of up to 57 BTC in late May. K33 expects this Bitcoin exposure to enhance operational leverage as a broker, improve margins, enable new product offerings, and attract institutional clients. The company already purchased 5 BTC on Tuesday, demonstrating their commitment to this strategy.
Strategic Rationale
K33 CEO Torbjørn Bull Jenssen stated that building a strong Bitcoin-based balance sheet will improve their brokerage operations while benefiting from Bitcoin's potential upside. He highlighted the benefits of this initiative in improving their brokerage operation while maintaining full exposure to Bitcoin's upside potential. The company also mentioned that the holdings will unlock operational leverage, leading to margin improvements and opening doors for new product offerings, ultimately strengthening its appeal to institutional clients.
Growing Trend in Norway
K33's move reflects a broader trend among Norwegian companies investing in Bitcoin. Recently, Norwegian Block Exchange saw its stock surge over 138% after announcing its own Bitcoin treasury plan. Aker ASA, a major Norwegian industrial holding company, established Seetek in 2021, a subsidiary dedicated to Bitcoin and cryptocurrency investments, currently holding 754 BTC (over $63 million at the time of writing).
Share Issue Details
The share offering excludes the United States, Canada, Australia, Russia, South Korea, and other jurisdictions where the offer would be illegal.
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