Sweden’s BTC AB has introduced Europe’s first Bitcoin-backed preferred stock, BTC PREF, on the Spotlight Stock Market, which offers investors a fixed 10% annual dividend paid monthly. The Stockholm-based company launched the share sale in late June at SEK 120 each, aiming to raise SEK 23.4 million by selling 195,078 shares.
Share Sale Results and Dividend Model
The offer attracted only about 52% participation, generating roughly SEK 12.2 million, just over half the targeted capital. BTC AB plans to use the funds to purchase additional Bitcoin and maintain a cash reserve to support dividend payments. Currently, the company holds around 172 BTC, valued at approximately $11 million.
Each preference share yields SEK 12 per year in dividends, translating to a 10% return on the issue price. Payments are distributed monthly to shareholders.
Market Context and Comparisons
The timing of the sale coincided with a Bitcoin price decline, which may have contributed to the subdued demand. During this period, MicroStrategy’s preferred stock, STRC, also traded below its $100 face value amid Bitcoin’s downturn.
MicroStrategy’s STRC stock operates on a similar model at a much larger scale, currently valued at $10.5 billion. It started with a 9% dividend and now pays 12%, though its trading price remains below par. Despite this, buyers continue to accumulate STRC shares, with some analysts suggesting a 13% undervaluation.
Bitcoin’s price currently hovers around $65,426, down nearly 45% over the past year, posing risks to fixed payouts like BTC PREF’s 10% dividend. In contrast, STRC’s dividend rate adjusts flexibly with market conditions.
Trading and Future Outlook
BTC AB has engaged Pareto Securities to facilitate liquidity and trading ease from the outset. The coming weeks will indicate whether European investors embrace Bitcoin income through stock instruments offered by firms like BTC AB.
Market reaction saw limited uptake, reflecting cautious investor sentiment amid Bitcoin’s volatility.
