French Bitcoin treasury firm Capital B is developing a Bitcoin-backed credit instrument modeled after Strategy’s STRC to target the European market.
This move signals a shift toward institutionalizing digital credit in Europe, potentially allowing firms to leverage Bitcoin reserves for high-yield financial products. By creating a structured credit vehicle, Capital B aims to capture a significant portion of the emerging digital-credit market.
Shareholders approved the initiative on June 17, 2024, granting the company the authority to execute a €5 billion equity raise [1] and a €100 billion credit framework [1]. These funds are intended to fuel a Bitcoin buying spree and support the expansion of the firm's treasury operations.
The firm is currently utilizing 3,139 BTC to back the product [2]. To further strengthen its reserves, Capital B previously raised €15.2 million through a private placement [3].
The strategy follows a broader industry trend toward Bitcoin-backed lending. According to reports from the Consensus conference, Bitcoin treasury firms have identified an estimated $3 trillion market opportunity in Bitcoin-backed digital credit [4]. This growth is evidenced by the fact that $10 billion in digital credit was issued in less than one year [4].
Capital B intends to position itself as a primary provider of high-yield products in Europe, utilizing the STRC-style model to provide liquidity while maintaining a core reserve of digital assets. The firm said the framework allows it to scale its holdings while providing the necessary credit infrastructure for institutional clients.
“Capital B is developing a Bitcoin-backed credit instrument modeled after Strategy’s STRC”
The scale of Capital B's approved credit framework suggests an aggressive attempt to bridge the gap between traditional European corporate finance and digital asset treasuries. By mimicking the STRC model, the firm is betting that institutional appetite for Bitcoin-collateralized loans will grow, transforming Bitcoin from a passive reserve asset into an active engine for credit generation.
