France’s Capital B Plans Bitcoin-Backed Credit Product for Europe

Capital B, a French-listed Bitcoin treasury company, is preparing to launch a Bitcoin-backed credit product for the European market. The company plans to offer a digital credit instrument with a structure similar to Strategy’s STRC and Strive’s SATA.

Alexandre Laizet, a director at Capital B, told crypto media outlet The Block at the BTC Prague event on June 16 that the company is developing a European-style Bitcoin-backed credit product.

The product would use the company’s Bitcoin holdings as the underlying asset and target a double-digit yield. It is also designed to keep volatility in the single digits, Laizet said. Capital B currently holds 3,139 BTC.

Laizet said Bitcoin treasury companies can deliver double-digit returns in an environment of currency debasement. Companies holding Bitcoin already have an asset on their balance sheets that amounts to long-term cash flow, he said, allowing them to design credit products around gains in that asset’s value.

He pointed to Strategy as an example. Strategy recently sold 32 BTC to pay a dividend on STRC and later bought an additional 1,587 BTC. Laizet said that structure demonstrates the sustainability of Bitcoin-based credit products.

Capital B said investor interest in digital credit products has increased about tenfold from a year earlier. It added that a decline in Bitcoin prices, execution risk, custody risk and counterparty risk remain the main risks.

The company works only with regulated banks and has assembled a team with expertise in capital markets, banking, technology and corporate finance, Laizet said. He did not provide a timeline for the product launch.

Capital B is a Bitcoin treasury company listed on Euronext Growth Paris under the ticker ALCPB. The company describes itself as Europe’s first and largest Bitcoin treasury company and says it is backed by Bitcoin investors including Adam Back and Fulgur Ventures.

Capital B is targeting ownership of 1% of Bitcoin’s total supply by 2033. It has also said it plans to hold 15,000 BTC by the end of 2027.

The company’s credit-product push is being interpreted in the market as a sign that the Strategy-style Bitcoin capital-markets model is spreading beyond the US into Europe. Bitcoin treasury companies are expanding their business models beyond simple holdings into credit, dividend and yield products.