In a strategic leap, Sweden’s H100 Group has secured shareholder approval to issue new shares, facilitating its acquisition of two Norwegian Bitcoin investment firms, Moonshot AS and Never Say Die AS. This acquisition is set to triple the group’s Bitcoin reserves, making H100 one of the largest Bitcoin holders within Europe’s corporate sector.
What’s Behind the Share-based Acquisition?
The structure behind this acquisition emphasizes issuing payment shares to the current owners of the Norwegian firms, avoiding any cash transactions. This tactic allows these sellers to retain their cryptocurrency exposure while integrating their assets into a publicly listed company.
H100 confirmed that shareholders approved all other proposed agenda items during the meeting.
How Will Charter Amendments Impact H100?
The shareholders also sanctioned modifications to H100’s corporate charter, which are pivotal for the company’s financial growth. These adjustments raise the capital ceiling for future share issuances and relate the issuance of payment shares to the acquisition’s completion, thereby expanding the range of total shares.
With these changes, H100’s authorized shares are set to increase, offering a robust legal framework for the expected post-acquisition capital structure.
The acquisition will add approximately 2,450 Bitcoins from Moonshot and Never Say Die, elevating H100’s total Bitcoin reserves to about 3,501 BTC. This boost positions H100 just behind Germany’s leading Bitcoin Group in the European hierarchy, and globally, it will jump from 43rd to 26th place.
- Post-acquisition, reserves to surge to approx. 3,501 BTC.
- European ranking climbs to second behind the Bitcoin Group.
- Globally, H100 will advance to 26th position in Bitcoin holdings.
Notably, H100’s Bitcoin acquisition costs average $114,615 per coin, while the current market value stands at approximately $62,400 per Bitcoin, spotlighting a valuation excess of $65.6 million against a layout of $120.5 million.
Can H100 Shares Regain Momentum?
Despite a boost in Bitcoin reserves, H100 shares traded at 1.162 Swedish kronor recently, with a market capitalization of about 399 million kronor. Notably, the shares have dipped over 91% these past twelve months, including a 38% drop in early 2024.
Sander Andersen, Chair of the Board, remarked in March that this acquisition will enhance H100’s scale and reliability, key factors in navigating the Bitcoin economy, while also increasing its access to capital markets.
The shareholder meeting retained CEO Johannes Wiik alongside existing board members. Wiik reiterated his unwavering commitment to H100’s future strategy, heralding enhanced prospects for the group in an evolving market.
