Fragbite Group Stock Surges 64% After Bitcoin Treasury Announcement

Fragbite Group, a Swedish gaming and web3 company, has announced its intention to establish a Bitcoin treasury to safeguard its balance sheet against future economic uncertainties. The company's Board of Directors has endorsed a new strategic direction that involves allocating a portion of its profits to acquire Bitcoin (BTC).

According to the company's statement, Bitcoin is viewed not only as a safeguard against inflation but also as a global monetary network with the potential to revolutionize how companies store value. To fund this initiative, Fragbite Group plans to raise capital through various ventures, beginning with the issuance of 0% convertible bonds valued at approximately 5 million krona, equivalent to $530,000. The company aims to offer a conversion price for these interest-free shares at around 10 krona ($1.05) per share, reflecting a 110% premium to the 20-day volume weighted average price. The finalization of subscriptions for these bonds is expected to occur in the near future.

Following the announcement of this strategic shift towards Bitcoin accumulation, Fragbite Group's stock experienced a significant surge, rising as much as 64% within the past 24 hours. The stock reached a peak price of SEK 9.94 per share on June 30. The company has assured that this business model transition will not significantly impact its day-to-day operations, as most of its activities are already conducted in a decentralized manner.

As part of this new strategy, Fragbite Group has created the role of Treasury Director, who will be responsible for overseeing the company's Bitcoin holdings. This position will be compensated through a performance-based incentive program designed to align with shareholder interests. Patrik von Bahr, the Lead Game Designer of FunRock and a prominent Bitcoin advocate, has been appointed to this role. Von Bahr believes that the ability to measure Bitcoin per share metrics and elevate value from BTC holdings will become increasingly important for companies in the future. He expressed optimism that Fragbite Group's early adoption of this strategy will create substantial shareholder value in both the short and long term.

Fragbite Group, established in 2015, is a Swedish corporate entity comprising several subsidiary companies that develop, adapt, and publish games and content relevant to the gaming, e-sports, and web3 fields. The company's products are designed for various platforms, including PC, mobile, console, and modern blockchain-based platforms. Fragbite Group's main office is located in Stockholm, Sweden, and it is listed on the Nasdaq First North Growth Market.