K33, a European digital asset brokerage based in Norway, has announced it raised 60 million Swedish krona (approximately $6.2 million) to initiate a Bitcoin-focused treasury strategy. The capital was secured through a combination of interest-free convertible loans and a new issuance of shares and warrants.
The raised funds will be used entirely to acquire Bitcoin, with the company aiming to purchase around 57 BTC at the current price of over $108,000. CEO Bull Jenssen described the move as a foundation for the firm’s broader strategy, which includes using its Bitcoin holdings to introduce new services such as BTC-backed lending.
“Why wait for the government to build a Bitcoin reserve when you can build your own?” Jenssen stated on social media platform X, underscoring the company’s belief in Bitcoin’s long-term potential. He added that the initial financing has been secured and that K33 is “ready to accelerate from here.”
Financing Structure and Investor Incentives
K33’s financing strategy comprises 45 million SEK ($4.6 million) in zero-interest convertible loans set to mature on June 30, 2028, and 15 million SEK ($1.5 million) raised through new equity and warrant issuance. The warrants offer investors a unique incentive: if converted before March 2026, they entitle holders to additional free warrants at the same conversion rate.
If fully exercised, the total raised capital could increase to 75 million SEK ($7.7 million), significantly boosting K33’s ability to acquire more Bitcoin. This structure reflects both investor confidence in K33’s strategy and the broader market appetite for Bitcoin-related financial exposure.
BTC Treasury to Fuel New Financial Products
The Bitcoin treasury initiative isn’t just about asset appreciation. In its Q1 interim report released on May 28, K33 outlined a vision where Bitcoin becomes a strategic asset that enables new product offerings. CEO Jenssen emphasised that Bitcoin is both a “high-conviction asset” and a “strategic enabler.”
K33 aims to leverage its Bitcoin holdings to launch services such as BTC-backed lending, in partnership with other Nordic firms adopting similar treasury strategies. Jenssen believes that with a sizable Bitcoin reserve, the company can enhance its financial stability, open new revenue streams, and forge key partnerships in the rapidly evolving crypto sector.
Market Response and Industry Context
Despite the bold announcement, K33’s share price did not see an immediate boost. On May 28, the stock closed down by 1.96%, according to Google Finance. This contrasts with other companies like GameStop and Blockchain Group, which saw notable share price surges after announcing similar Bitcoin purchase strategies.
GameStop’s stock rose nearly 12% on March 26 following its BTC-buying plan but later dropped 11% on May 11 after the company announced a 4,710 Bitcoin acquisition. Meanwhile, France’s Blockchain Group experienced a 225% spike in its share price in November 2023 after it began accumulating Bitcoin.
These mixed reactions highlight the volatility and speculative nature of market responses to corporate Bitcoin strategies. However, K33 appears focused on long-term utility rather than short-term market gains.
A Strategic Bet on Bitcoin’s Future
K33’s move underscores a growing trend among European firms to not only hold Bitcoin as a treasury asset but also integrate it into their core business models. By combining strategic capital raising with an ambitious roadmap for BTC-backed services, K33 is betting that Bitcoin will not just be a store of value but a key enabler of next-generation financial products.
As Jenssen succinctly put it, K33 intends to “accumulate as many [Bitcoins] as possible” while strengthening its operational synergy and expanding its market footprint. Whether or not the market rewards this pivot in the short term, K33 is clearly playing the long game in the evolving crypto economy.
