Treasury, a European Bitcoin company, has raised €126 million ($147 million) in an initial private funding round led by Winklevoss Capital and Nakamoto Holdings. The company plans to use the capital to expand its Bitcoin holdings, purchasing over 1,000 BTC to kickstart its treasury, according to a Wednesday announcement shared with Cointelegraph. Treasury aims to become “the first Bitcoin treasury company listed on a primary European exchange.”
The firm plans to enter the Euronext Amsterdam stock exchange through a reverse listing via a merger with lender MKB Nedsense. This approach allows private companies to go public by merging with already-listed firms, bypassing standard listing requirements.
Treasury founder and CEO Khing Oei told Cointelegraph that the company intends to leverage future equity issuances and convertible debt to grow its Bitcoin reserves. “We plan to use both equity and debt to accumulate Bitcoin as our primary reserve asset,” the announcement said.
European Bitcoin Treasuries on the Rise
With its initial allocation of 1,000 BTC, Treasury quickly ranks among Europe’s notable corporate Bitcoin holders. According to BitcoinTreasuries.NET, the largest European corporate Bitcoin treasury belongs to German firm Bitcoin Group, holding 3,605 BTC worth roughly $400 million.
They are followed by France’s Sequans Communications with 3,205 BTC ($356 million) and UK-based The Smarter Web Company with 2,440 BTC ($270 million). The European market for corporate Bitcoin treasuries is growing increasingly crowded, with Dutch crypto service provider Amdax recently announcing plans to launch its own Bitcoin treasury on Euronext Amsterdam.
Challenges Remain for Bitcoin Treasury Companies
Despite growing interest, the Bitcoin treasury model has its critics. A recent report from venture capital firm Breed cautioned that only a few companies will survive long term, warning that firms holding Bitcoin too close to net asset value risk entering a “death spiral” that could threaten their sustainability.
Oei said he viewed excessive leverage as a high risk, adding:
“We are closely monitoring the leverage percentages which competitors have been adopting over the years. The current capital market strategy includes a level of leverage currently lower than our peers.“
However, as recent reports highlight, the growing number of Bitcoin treasury firms has not always translated into success. Josip Rupena, CEO of lending platform Milo and former Goldman Sachs analyst, warned in late August that crypto treasury companies carry risks comparable to the collateralized debt obligations that sparked the 2007–08 financial crisis.
