Capital B Purchased More Bitcoin While Its Treasury Remains Significantly Underwater
(4 days ago) · 1 source · Summarized by CryptoBipto
Capital B has added more Bitcoin to its treasury at prices below its average cost basis. Despite the new purchase, the company's Bitcoin holdings are still approximately €50.8 million below their total acquisition cost.
WHY IT MATTERS
Some companies have started holding Bitcoin in their treasuries, similar to how businesses might hold cash reserves or gold. When a company is described as being "underwater" on its Bitcoin holdings, it means the current value of the Bitcoin it owns is less than what it paid for it — like buying a house for $300,000 that is currently worth $250,000. Capital B buying more Bitcoin below its average cost is like trying to bring down the average price it paid per coin. This story illustrates the risks and realities companies face when they choose to hold a volatile asset like Bitcoin on their balance sheets instead of traditional reserves.
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- beincrypto.com
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