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Bitcoin Bound: European Firm K33 Raises $6.2 Milion For Strategic Buys

Norwegian broker K33 has set its sights on adding Bitcoin to its balance sheet. It raised 60 million Swedish krona (about $6.2 million) to buy and hold the cryptocurrency.

Based on reports, the cash comes from a mix of convertible loans and new share and warrant issues.

New Funding Round Raises 60 Million Krona

According to K33’s May 28 statement, 45 million krona of the total comes from interest-free convertible loans. Those loans don’t carry any interest and mature on June 30, 2028.

The rest, 15 million krona, will be raised through a new share sale and free warrants. If all the warrants and conversions happen, K33 could pull in up to 75 million krona.

Bitcoin Buy Plan Outlined

Based on reports, the fresh funds will go “in full” to build what K33 calls its Bitcoin Treasury Strategy. At today’s price of just over $108,000 per coin, the company could buy about 57 BTC. That gives them a decent pile of BTC to work with as they roll out new services.

Management Sees Long-Term Gains

CEO Bull Jenssen posted on X that he expects Bitcoin to be the “best-performing asset in the coming decade.” He wrote that K33 will “accumulate as many as possible while unlocking powerful operational synergies with our brokerage operation.”

He also asked:

“Why wait for the government to build a crypto reserve when you can build your own?”
Risks And Rewards

K33’s share price barely budged and actually fell 1.90% on May 28. That shows some investors worry about Bitcoin’s wild swings. It’s a known fact that BTC can jump or drop 10% or more in a single day.

GameStop saw its stock jump around 10% after it said it would buy Bitcoin, only to slide 10% when it made its first purchase of 4,710 BTC. And Paris’s Blockchain Group stock once spiked 220% when it started its Bitcoin buys.

Building a Bitcoin reserve also opens doors. Jenssen told investors that a sizable BTC holding could help K33 launch Bitcoin-backed loans and boost its brokerage arm.

With fresh cash on hand, they plan to team up with other Nordic firms doing the same. He said their treasury will be the base for new revenue and product ideas.

Featured image from Unsplash, chart from TradingView



from Bitcoinist.com https://ift.tt/2xGHFCr
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