H100 Group AB Secures $2.2 Million Funding for Bitcoin Purchase

Adam Back, the CEO of Blockstream, has spearheaded a 21 million Swedish krona ($2.2 million) funding round for H100 Group AB, a Swedish health tech company. This investment comes on the heels of H100's recent announcement that it would begin purchasing Bitcoin. The funds, obtained through 0% interest convertible loans, are earmarked for acquiring Bitcoin, in line with H100's strategic shift towards embracing the cryptocurrency.

Back, a well-known figure in the Bitcoin community, contributed around $1.4 million to the funding round. The remaining $800,000 was provided by several investment firms, including Morten Klein, Alundo Invest AS, Race Venture Scandinavia AB, and Crafoord Capital Partners. This influx of capital will enable H100 to purchase approximately 20.18 Bitcoin at current market prices, adding to the 4.39 Bitcoin it had already acquired on May 22. This brings H100's total Bitcoin holdings to roughly 24.57 Bitcoin.

The convertible loans, which bear no interest, have a maturity date of June 15, 2028. These loans can be converted into shares at any time at a conversion rate of 1.3 Swedish krona (11 US cents) per share. If H100's share price maintains a volume-weighted average price of more than 33% above the conversion price for a cumulative total of 60 trading days, the company has the right to mandate a conversion of the loan into equity. A full conversion would result in the issuance of roughly 16,153,900 new shares, corresponding to a dilution of approximately 12%.

H100's decision to adopt Bitcoin as a treasury asset is part of a growing trend among companies seeking to diversify their holdings. The company, which provides health tools for individuals looking to avoid reliance on traditional healthcare systems, believes that the values of individual sovereignty present in the Bitcoin community align well with its customer base. This move positions H100 as the first public company in Sweden to adopt a Bitcoin treasury policy and one of the first in Europe to do so. The company's CEO, Sander Andersen, emphasized the alignment of Bitcoin's values with H100's mission, suggesting that this strategy will resonate with their target communities.

This funding round and Bitcoin purchase have garnered significant attention, with H100's shares experiencing a notable increase following the announcement. This development highlights the growing interest in Bitcoin among traditional companies and the potential for further adoption in the corporate sector. As more firms recognize the benefits of holding Bitcoin, the trend is likely to continue, with H100 serving as a pioneering example in the European market.