K33 Raises $6.2 Million to Invest in Bitcoin

European crypto firm K33 has successfully raised 60 million Swedish krona ($6.2 million) to invest in Bitcoin, marking a significant move in the cryptocurrency market. The funds, secured through convertible loans and a new issue of shares and warrants, will be entirely allocated to acquiring Bitcoin, establishing what the firm calls its "Bitcoin Treasury Strategy."

K33, a Norwegian crypto brokerage, aims to leverage its Bitcoin holdings to offer new services, such as BTC-backed lending. CEO Bull Jenssen expressed optimism about Bitcoin's future, stating that he believes it will be the "best-performing asset in the coming decade." Jenssen's vision includes accumulating as much Bitcoin as possible while integrating it with the company's brokerage operations to unlock operational synergies.

The financing details reveal that the convertible loans amount to 45 million Swedish krona ($4.6 million) and are interest-free, maturing on June 30, 2028. The remaining 15 million Swedish krona ($1.5 million) will be raised through a new share issuance and warrants. If investors convert their warrants before March 2026, they will receive additional free warrants at the same conversion rate. This could potentially raise up to 75 million Swedish krona ($7.7 million) for K33's Bitcoin purchases.

K33's interim report for the first quarter highlighted the company's strategic plans to collaborate with other Bitcoin treasury companies in the Nordics. Jenssen emphasized that Bitcoin is not just a high-conviction asset for K33 but also a strategic enabler. With a substantial BTC reserve, the firm aims to strengthen its financial position and unlock new revenue streams, product capabilities, and partnerships.

The move by K33 to build its own Bitcoin reserve aligns with a growing trend among companies to invest in cryptocurrencies as a strategic asset. This strategy is seen as a way to hedge against inflation and diversify investment portfolios. K33's decision to use its Bitcoin holdings to offer new services, such as BTC-backed lending, demonstrates a forward-thinking approach to integrating cryptocurrency into traditional financial services.