Close Menu
  • Coins
    • Bitcoin
    • Ethereum
    • Altcoins
    • NFT
  • Blockchain
  • DeFi
  • Metaverse
  • Regulation
  • Other
    • Exchanges
    • ICO
    • GameFi
    • Mining
    • Legal
  • MarketCap
What's Hot

Crypto exchange giant Bybit to offer European ‘super-app’ with stocks, derivatives

26/09/2026

The dilution trap where Bitcoin holdings rise while shareholder value stalls

26/09/2026

Citigroup delays Fed rate cut forecast to June 2027 after jobs surprise

26/09/2026
Facebook X (Twitter) Instagram
  • Back to NBTC homepage
  • Privacy Policy
  • Contact
X (Twitter) Telegram Facebook LinkedIn RSS
NBTC News
  • Coins
    1. Bitcoin
    2. Ethereum
    3. Altcoins
    4. NFT
    5. View All

    The dilution trap where Bitcoin holdings rise while shareholder value stalls

    26/09/2026

    CryptoQuant Reveals What Comes Next

    26/09/2026

    Michael Saylor Emphasizes Bitcoin as a Global Reserve Asset

    26/09/2026

    Why Bitcoin initially held its gain as rate traders put September hike odds at 85%

    26/09/2026

    Coinbase sees $18.1B BTC, ETH options expire Friday

    26/09/2026

    FTX, Alameda-linked wallets send $75 million in ether to Wintermute, onchain data shows

    26/09/2026

    “ETH Could Hit a New ATH This Year”

    26/09/2026

    Ethereum hash functions clash over BLAKE3’s speed and SHA-3’s safety

    26/09/2026

    Solana speeds up blocks by 17%, but transaction capacity stays the same

    26/09/2026

    Analysts Compare the Fastest Rising Altcoin Lately to Bitcoin! “It Could Rise for Two More Years!”

    26/09/2026

    Rare $0 Day Hits Shiba Inu

    26/09/2026

    Ripple’s David Schwartz Addresses Exchanges’ Hesitation on Listing Bitcoin-Based Asset

    26/09/2026

    Whitehats rescue $5.7 million in NFTs after Limit Break Payment Processor exploit

    25/09/2026

    Magic Eden scare puts 3,832 NFTs in whitehat protective custody

    25/09/2026

    Elon Musk Brings Back His Wild NFT Avatar Moment

    22/09/2026

    Sony Says You Don’t Own the Games You Bought. Crypto Says It Can Fix That

    22/09/2026

    Crypto exchange giant Bybit to offer European ‘super-app’ with stocks, derivatives

    26/09/2026

    The dilution trap where Bitcoin holdings rise while shareholder value stalls

    26/09/2026

    Citigroup delays Fed rate cut forecast to June 2027 after jobs surprise

    26/09/2026

    Solana speeds up blocks by 17%, but transaction capacity stays the same

    26/09/2026
  • Blockchain

    cirBTC Goes Live on Arc as Circle Expands Bitcoin Collateral for Onchain Finance

    26/09/2026

    Trueo prediction market moves from Base to Ethereum

    25/09/2026

    South Korea Prepares to Use Blockchain-Based Digital Currency for Government Spending! Here Are the Details

    25/09/2026

    Pyth Network Launches 50 New Indices Including ETFs

    25/09/2026

    Chainlink blockchain finance push hits Sibos with Microsoft, DTCC in room

    25/09/2026
  • DeFi

    Ondo Pushes USDY Deeper Into Solana DeFi

    25/09/2026

    Aave Founder Questions Morpho’s Definition of Non-Custodial Vaults

    25/09/2026

    Pendle Unveils New Maturity for USDG, Strengthening RWA

    25/09/2026

    Tokenization Growth on PancakeSwap Expected to Accelerate

    25/09/2026

    Kash Dhanda of Jupiter Exchange Talks Solana’s Future

    25/09/2026
  • Metaverse

    Is Solana Gaming Back? Kintara Activity Fuels Renewed Optimism in Onchain MMOs

    24/06/2026

    The Sandbox launches AI game engine ‘The Sandbox Studio’ for next-generation creators

    10/06/2026

    Meta commits $13M in funding for Oversight Board through 2028

    29/05/2026

    Why Animoca’s Yat Siu says the future is 100 billion AI agents

    07/05/2026

    ‘8,000 Jobs’—Polymarket Sees Tech Layoff Surge As Meta AI Push Bites

    18/04/2026
  • Regulation

    Citigroup delays Fed rate cut forecast to June 2027 after jobs surprise

    26/09/2026

    Could India’s Stock-Market Tax Cuts Unlock Liquidity Across Stocks, Forex and Crypto?

    26/09/2026

    India’s Crypto User Base Is Getting Younger and More Diverse—but Why Are 63% Not Trading?

    26/09/2026

    CoinShares report shows RWA deposits tripling to $7.4B

    26/09/2026

    Only 4 of top 20 crypto treasury firms trade above asset value: report

    26/09/2026
  • Other
    1. Exchanges
    2. ICO
    3. GameFi
    4. Mining
    5. Legal
    6. View All

    Crypto exchange giant Bybit to offer European ‘super-app’ with stocks, derivatives

    26/09/2026

    MoneyGram unveils stablecoin-backed card as digital dollars move into everyday spending

    26/09/2026

    Kalshi launches gold and silver perps after CFTC approval

    26/09/2026

    Coinbase Wallet Rebrands to Chase ‘Anything, Anywhere’ Trading as Robinhood Chain Heats Up

    26/09/2026

    ICO market slows sharply with only six completions in 2026

    30/04/2026

    South Korea Poised to Lift Ban on Domestic ICOs After 7 Years

    19/12/2025

    Why 2025’s Token Boom Looks Both Familiar and Dangerous

    31/10/2025

    ICO for bitcoin yield farming chain Corn screams we’re so back

    22/01/2025

    Top 12 NFT games every player should know about in August 2026

    19/08/2026

    GameShame Studios founder details Raijin Protocol’s roadmap in NeoPod’s sixth AMA

    13/08/2026

    How BC.GAME is turning players into stakeholders

    04/08/2026

    YGG Play Shuts Down Services as Yield Guild Pivots to AI Data

    01/08/2026

    Bitcoin Miner Hive Escalates Swedish VAT Dispute to European Commission

    26/09/2026

    CleanSpark closes $2.276 billion senior secured notes offering

    26/09/2026

    Hut 8 Wins $140M Bid for Poolin’s Two Texas Data Centers

    24/09/2026

    Bitcoin’s $84K rally isn’t saving miners as difficulty signals already flash caution

    22/09/2026

    UK crypto firms get five-month window to seek FCA approval

    25/09/2026

    What It Means for Crypto Traders and New Products

    25/09/2026

    Donald Trump Met with His Advisors Regarding the “Boğa” Crypto Clarity Act

    25/09/2026

    Why US Must Lead in Crypto

    25/09/2026

    Crypto exchange giant Bybit to offer European ‘super-app’ with stocks, derivatives

    26/09/2026

    The dilution trap where Bitcoin holdings rise while shareholder value stalls

    26/09/2026

    Citigroup delays Fed rate cut forecast to June 2027 after jobs surprise

    26/09/2026

    Solana speeds up blocks by 17%, but transaction capacity stays the same

    26/09/2026
  • MarketCap
NBTC News
Home»Bitcoin»The dilution trap where Bitcoin holdings rise while shareholder value stalls
Bitcoin

The dilution trap where Bitcoin holdings rise while shareholder value stalls

NBTCBy NBTC26/09/2026No Comments11 Mins Read
Share
Facebook Twitter LinkedIn Pinterest Email


Buying shares in a Bitcoin treasury company gives ownership in a business that holds Bitcoin, and management decides how to pay for the coins and when to buy or sell them.

The company also has bills to pay and may owe money to lenders, so the shares’ value depends on those decisions and Bitcoin’s price.

France’s Capital B is a Bitcoin treasury company that makes that relationship easy to see. Between Aug. 17 and Sept. 7, its treasury Bitcoin holdings increased from 3,145 $BTC to 3,521 $BTC, roughly 12%.

However, Bitcoin per share barely moved under the company’s calculation, which includes some shares that could be created in the future. More Bitcoin came into the business alongside more claims to ownership.

That result explains why the method of paying for Bitcoin belongs at the center of any assessment of a treasury stock.

Selling new shares raises cash, but existing shareholders then own a smaller percentage of the company. Borrowing preserves their percentage for the moment while adding a repayment obligation. Either can work well on favorable terms, but both affect the investment’s value.

Capital B is listed on Euronext Growth Paris and adopted its Bitcoin strategy in November 2024. Previously known as The Blockchain Group, it also retained technology-services businesses. Its operating-company portfolio includes iORGA, which builds web applications, and Trimane, which supplies business-intelligence and AI consulting.

Shareholders own a stake in the whole group, including the subsidiaries and their expenses.

Like Strategy, Capital B aims to use access to investment capital to accumulate Bitcoin. Its French accounting rules and euro funding mean it must pursue that goal in a very different financial setting than its American colleagues. The comparison helps explain what investors gain by putting a management team between themselves and the coins, and what they pay for that arrangement.

Buying Bitcoin is the easy part

Companies can use cash earned by their businesses to buy Bitcoin, or raise money from investors and lenders. Each approach gives the financiers a different claim on the company.

Using surplus operating cash doesn’t directly add shares or debt, although it uses money that could have served another purpose. Selling shares brings in fresh capital and spreads ownership across more shares. Borrowing creates an obligation that has to be met even if the investment disappoints.

More shares aren’t automatically bad for existing shareholders. The issue price determines how much new purchasing power each share brings into the company.

Consider a hypothetical business with 100 $BTC and 100 shares, with Bitcoin fixed at €100,000. It issues another ten shares and uses every euro raised to buy coins. This simplified example assumes no fees, taxes, operating expenses, or debt.

Both start with one $BTC per share. Prices and quantities are hypothetical and do not describe Capital B securities.

In the first case, an existing shareholder owns a smaller percentage of a company containing enough additional Bitcoin to increase the amount per share. In the second, the new cash doesn’t buy enough coins to maintain the original ratio.

The first transaction depends on investors paying more per new share than the Bitcoin value of an existing one. They might accept that premium because they expect management to repeat profitable financings.

That expectation can help the process continue, but once buyers stop paying the premium, issuing shares buys less Bitcoin for each additional share created.

Capital B also raises money through packages combining ordinary shares and warrants. Warrants give holders the right to buy future shares at specified exercise prices. Capital B’s Aug.28 financing terms attached four warrants to each share, with different exercise prices and five-year maturities.

Investors pay for the initial package and can later pay again to exercise the warrants. That second payment could finance more Bitcoin purchases, but it isn’t cash already in the company’s account. If exercise is unattractive, the holder may never supply that additional cash.

Exercised warrants bring in cash and create shares at the same time. Any estimate of their effect on existing owners needs to include both, using the exercise price to calculate how much money the company would receive.

Convertible debt is another way to finance Bitcoin purchases. Lenders receive repayment claims with a contractual path into shares, and the company owes the debt under its terms until conversion.

Capital B has used Bitcoin-denominated convertible financing, described in its annual results presentation, alongside its other funding arrangements.

Bitcoin-linked obligations behave differently from fixed-euro debt. When repayment follows Bitcoin’s value, a more valuable reserve can come with a more expensive obligation in euros. The conversion and repayment provisions determine that relationship.

Zero-coupon financing avoids periodic interest payments, while lenders can receive compensation through other terms, including their conversion rights.

Strategy’s US business uses common equity, convertible debt, and preferred stock. Preferred shares generally rank above common shares for specified claims and can carry dividend obligations, depending on their terms.

Its July results also describe Bitcoin sales to fund part of its preferred dividends. Treasury companies can therefore differ in how they use Bitcoin and how they finance it.

More coins divided among more shares

The most visible number in a treasury announcement is usually the coin balance. To understand an existing shareholder’s position, you have to pair that number with a share count.

Capital B’s Sept. 7 filing provides the comparison below. Its diluted share count includes existing shares and certain shares that could be issued, allowing the company to estimate how much Bitcoin each would represent. Satoshis are the smallest Bitcoin units, with 100 million in one $BTC.

All share figures use the pre-consolidation basis in the Sept. 7 filing. The reserve excludes separately designated operational Bitcoin. The diluted count is company-defined.

Both the Bitcoin reserve and the diluted share count expanded by roughly 12%, leaving the ratio almost flat. This ratio compares the holdings to a defined number of shares. Shareholders have no general right to exchange each share for that amount of Bitcoin, and the calculation doesn’t deduct the company’s debts.

The next day brought an administrative event that can distort comparisons with these figures. Capital B’s ten-for-one reverse stock split took effect Sept. 8. Ten old shares became one new share. The consolidation reduces the share count and mechanically increases the amount attributable to each resulting share without multiplying the company’s assets.

On that basis, 736.6 satoshis per old share corresponds mechanically to 7,366 per new share, converting the historical figure into the new units. Charts must use a consistent share basis or risk displaying spectacular performance produced entirely by the consolidation.

The company’s “$BTC Yield” measures the percentage movement in Bitcoin per diluted share over a period. Despite its name, it pays shareholders no cash and measures a different outcome from their investment return, as Capital B explains in its disclosure.

Shareholders’ returns depend on the prices at which they buy and sell, while corporate obligations affect their claim on the assets.

“Fully diluted” sounds as though it includes every possible future share, but a company-defined performance measure can use a specific set of assumptions. Capital B’s count incorporates issued shares, assumed convertible-bond shares, employee awards, and an additional reserve for potential shares.

To assess the outstanding warrants, we need a separate exercise scenario, including the proceeds discussed earlier. How much Bitcoin those proceeds could buy depends on its price when the cash becomes available.

Conversion adds shares to the calculation, but it doesn’t make conversion inevitable. If lenders instead retain repayment claims, common shareholders must account for those claims. Subtracting debt and assuming the same debt converts at the same time can also double-count the burden.

Gross Bitcoin-per-share figures describe the reserve relative to a share count. Net asset value subtracts obligations from assets, and the stock market can price shares above or below that result.

Comparing these measures requires consistent assumptions about debt conversion and the money any new shares would bring in.

What buying through a French company adds

Europe makes this model different in ways that reach beyond the exchange on which the shares trade, starting with the currency.

Capital B raises money and reports most figures in euros. Bitcoin itself isn’t a dollar claim, even though the Bitcoin dollar price dominates financial coverage. The euro cost of buying it reflects both that commonly quoted price and the euro-dollar exchange rate.

Suppose Bitcoin stays at $100,000. At $1.25 to the euro, it costs €80,000. At $1 to the euro, it costs €100,000. Those are hypothetical exchange rates, but they explain why an unchanged dollar Bitcoin price doesn’t imply an unchanged euro balance-sheet value.

Euro operating costs and Bitcoin-linked financing obligations add different exposures to the same company.

The second difference is the market through which it raises capital. Euronext Growth is a multilateral trading facility aimed at smaller companies, with requirements distinct from Euronext’s main regulated markets.

Capital B operates within a French corporate framework and the rules governing that venue and its securities.

Those rules govern how management can issue shares and what investors must be told. Subscription rights can give existing shareholders a chance to buy new shares before outside investors, helping them maintain their ownership percentage.

Whether those rights apply or have been waived depends on the transaction. The price at which Capital B can raise money also depends on investors willing to buy its securities.

Accounting is the third difference, and it depends on the company and its location.

Capital B’s 2025 consolidated accounts use French accounting rules. Under its stated Bitcoin policy, unrealized gains are recorded through balance-sheet accounts, while unrealized losses can require a provision charged against earnings.

That means increases and decreases in Bitcoin’s value can affect reported results differently, even when no coins are sold.

US rules for qualifying crypto assets require fair-value measurement with valuation movements recognized in net income, so the FASB standard produces different earnings.

Other European companies may use IFRS, whose crypto accounting framework also depends on the purpose of the holdings. The applicable accounting rules must therefore be checked company by company.

Company-specific comparison using the cited disclosures. Neither column represents every treasury company in its region; instruments and policies can evolve.

Different accounting can make two businesses’ reported profits difficult to compare even when their assets experience the same market move. Those valuation entries describe movements in asset value, while the cash available to meet bills depends on the company’s receipts, spending, and financing.

Capital B’s 2025 results put that distinction into context. It reported a €62.2 million net loss, largely attributable to a €53.9 million Bitcoin impairment, alongside positive adjusted EBITDA of about €1.2 million at its established operating entities. Group adjusted EBITDA was negative, and the release identified about €4.1 million of treasury-business costs.

Those numbers describe different parts of the business and help describe operating performance, while cash available to buy coins depends on actual receipts and payments.

Custody, staff, and corporate financing require resources even when management intends to retain its reserves. Operating subsidiaries can help fund those expenses without making them disappear.

Finally, European investors already have alternatives to corporate treasury exposure. WisdomTree’s Bitcoin product document describes a physically backed exchange-traded debt security. Its legal structure differs from both direct Bitcoin and shares in Capital B, but it demonstrates that buying a treasury company isn’t Europe’s only listed route to the asset.

Investors also have to separate the business’s merit from its share price. Paying a large premium for capable management means paying today for some of its hoped-for future success. Discounts may compensate buyers for corporate expenses or doubts about access to fresh capital.

Either price needs to be judged against the obligations and prospects behind it.

Favorable issuance can increase Bitcoin exposure per share, giving shareholders something direct holdings cannot deliver on their own. That benefit has to earn its place alongside corporate expenses and financing risk.

Investors who prefer a passive product accept a more limited mandate in exchange for avoiding those management decisions.

Capital B’s appeal depends on management raising money on terms that leave existing shareholders better off once the company’s costs and obligations are accounted for. Its larger Bitcoin reserve is one part of that assessment.

The share count explains how widely ownership is divided, and the financing contracts explain who must be paid. Buying the stock means trusting management to make those pieces work together at a price worth paying.

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
NBTC

NBTC is the editorial account for NBTC News, covering Bitcoin, Ethereum, DeFi, blockchain infrastructure, exchanges, mining, regulation and digital asset markets. The editorial team focuses on clear sourcing, timely updates and practical context for crypto readers.

Related Posts

CryptoQuant Reveals What Comes Next

26/09/2026

Michael Saylor Emphasizes Bitcoin as a Global Reserve Asset

26/09/2026

Why Bitcoin initially held its gain as rate traders put September hike odds at 85%

26/09/2026

Bitcoin’s $80,000 ceiling looks fragile after stocks shrugged off near-5% Treasury yields

26/09/2026
Add A Comment

Comments are closed.

Top Posts
Get Informed

Subscribe to Updates

Get the latest news from NBTC regarding crypto, blockchains and web3 related topics.

Your source for the serious news. This website is crafted specifically to for crazy and hot cryptonews. Visit our main page for more tons of news.

We're social. Connect with us:

Facebook X (Twitter) LinkedIn RSS
Top Insights

Crypto exchange giant Bybit to offer European ‘super-app’ with stocks, derivatives

26/09/2026

The dilution trap where Bitcoin holdings rise while shareholder value stalls

26/09/2026

Citigroup delays Fed rate cut forecast to June 2027 after jobs surprise

26/09/2026
Get Informed

Subscribe to Updates

Get the latest news from NBTC regarding crypto, blockchains and web3 related topics.

Type above and press Enter to search. Press Esc to cancel.