Capital B has proposed raising $122 billion for Bitcoin! Suicide mission maybe?

[Dictator69]

While the market panics over institutional selling, a hilarious David and Goliath story is unfolding in Europe, where a France-listed company, Capital B, with a market cap of $166 million, has just proposed an insane $122 billion (yes, with a B) fundraise to buy more Bitcoin. They already hold around 3139 BTC while MSTR is holding massive 843,706 BTC and making Capital B a complete drop in the bucket compared to the giant MSTR. "They have not compared it with MSTR in their proposal. I did in this post." Because by comparing it with another company, we can get a better idea if it is news to be happy about or not. Because such news could be sold to create false hope in the market for manipulation purposes, maybe.

Anyway, before you guys ask what is happening and the kind of questions you find yourselves asking when you are hit with pure disbelief and your brain is trying to process what you just heard, to put all this audacity into perspective, they are trying to raise capital 760x their entire market valuation. On paper, this goal would dethrone MSTR, which sits on a massive $57 billion Bitcoin stash.

According to Capital B, they will hold a vote on this proposal on June 17, and it will be submitted at the Ordinary and Extraordinary General Meeting of the company. You can read the complete proposal in the image below.

According to their share value, which is around $0.55 for now, to raise the equity portion of €5 billion, they would have to issue 125 billion new shares, and in stock market history, that kind of flood of new shares would massively dilute existing shareholders and could crash the value toward zero. So I don't know what the play here is or what Capital B is thinking. They don't have Wall Street behind them, and I don't know what shareholders are going to vote, but I do have an idea about the result.

So is this a real corporate play here or another marketing stunt? Are they really trying to buy the asset, considering that if they get $122 Billion, which sounds impossible, or are they just trying to pump their penny stock by hijacking the MSTR playbook headlines?
What will happen if the votes come as Yes? Would they even be able to get that kind of money from any investor like a bank, or an institution? 
What would you do in this situation if you were a shareholder and the company asks for a vote?
What would be your vote, knowing that this could vaporize your own equity ownership into oblivion maybe. So would you approve this suicide mission?
What will happen to a tiny retailer who can't do shit, then what would be your first step here as one?

https://coingape.com/capital-b-proposes-122-billion-raise-to-buy-more-bitcoin/

[Ambatman]

Actually public companies usually ask shareholders to authorise large Issuance
It doesn't mean the money would appear the next day
Or that bank would provide them such amount
After approval the real challenge if finding such capital.

to raise the equity portion of €5 billion, they would have to issue 125 billion new shares, and in stock market history, that kind of flood of new shares would massively dilute existing shareholders and could crash the value toward zero

I would want to believe they won't want to use common stocks
They can use convertibles or preferred stocks.

[BlackHatCoiner]

The 100 billion EUR is a delegation to issue credit instruments and only 5 billion is the equity portion, so they're not printing 125 billion shares to fund $122 billion in BTC, that ceiling just lets the board act without calling another meeting.

The dilution worry is real but only on whatever equity they actually tap, and good luck finding anyone to underwrite 100 billion of debt for a $166M company.

[legiteum]

Apparently people in Hell have filed for ice water...

Seriously, who would underwrite this?

[Hamza2424]

While the market panics over institutional selling, a hilarious David and Goliath story is unfolding in Europe, where a France-listed company, Capital B, with a market cap of $166 million, has just proposed an insane $122 billion (yes, with a B) fundraise to buy more Bitcoin. They already hold around 3139 BTC while MSTR is holding massive 843,706 BTC and making Capital B a complete drop in the bucket compared to the giant MSTR. "They have not compared it with MSTR in their proposal. I did in this post." Because by comparing it with another company, we can get a better idea if it is news to be happy about or not. Because such news could be sold to create false hope in the market for manipulation purposes, maybe.

If you had not shared this analysis, then maybe bro I would have been surprised. I would also have compared it with MSTR because if someone is making such a bold move and wants to acquire more Bitcoin than BlackRock and MicroStrategy, then they have to be richer than them. But their market cap is nothing, and even the market they are in is not as big as Wall Street.

So if their agenda was to create fake hope and manipulation that the market is going to recover while it might dump, then this knowledge is enough for Bitcoiners to understand what they are doing. Nothing to speculate here. We are in a bear market, and news like this is meant to create FUD, nothing else.

[buwaytress]

Not proposing that I'm smarter than any of this but feels like the more realistic move would be to fundraise for a dip purchase gamble... either on Bitcoin to hit 40k or... 25k, which would be about 20% of ATH, like all bottoms have come to. And then to buy so and so amount of BTC. If price not hit, then funds returned.

But hey, what do I know?

[BlackBoss_]

Not proposing that I'm smarter than any of this but feels like the more realistic move would be to fundraise for a dip purchase gamble... either on Bitcoin to hit 40k or... 25k, which would be about 20% of ATH, like all bottoms have come to. And then to buy so and so amount of BTC. If price not hit, then funds returned.

But hey, what do I know?

$40k is possible but $25k is too low and I think it's impossible. In the last bear market, it was a first time Bitcoin dipped below all time high of a previous market cycle, so it's possible for a second time in Bitcoin history with this ongoing bear market. That's a reason I think $40k is a possible bottom price or bottom area for Bitcoin, while $25k is too too low, and I don't think about it.

Regarding to the proposal of Capital B, I don't know why they came to this crazy idea.