A UK company has joined the growing number of businesses buying Bitcoin for their corporate reserves. B HODL Plc said on Wednesday that it purchased 100 Bitcoins as part of its new treasury plan.
The company paid an average of £83,872 ($113,227) for each Bitcoin, spending about £8.4 million ($11.3 million) total. This purchase puts B HODL among the top 100 companies that hold Bitcoin in their treasuries worldwide, ranking at number 98 according to Bitcoin Treasuries information.
B HODL joins British BTC treasury firms
B HODL still trails behind other British companies. Smarter Web leads UK public companies with 2,525 Bitcoins worth $284.4 million, placing it 29th globally. Meanwhile, Michael Saylor’s Strategy remains the world leader, adding 850 more Bitcoins during the week to reach 639,835 BTC total, valued at $72 billion.
The company explained its approach in a statement: “The company remains focused on the disciplined acquisition of bitcoin to build a long-term strategic reserve that also powers B HODL’s Lightning Network operations.”
B HODL plans to build up its Bitcoin holdings over time. The company wants to use these holdings to run high-performing Lightning nodes, which help process Bitcoin payments and earn fees for routing transactions.
Crypto treasury companies are generally struggling
The excitement around companies buying Bitcoin for their treasuries appears to be cooling off. One out of every four public companies that hold BTC now trades for less than their holdings’ worth, research firm K33 reports.
When a company’s stock price falls below the value of its Bitcoin holdings, it becomes harder to raise money by selling new shares. K33 Head of Research Vetle Lunde explained: “When firms trade below NAV, issuing shares becomes dilutive because it gives away more ownership (via undervalued shares) than the value it receives in return (BTC).”
NAKA, formed from merging KindlyMD and Nakamoto Holdings, saw the biggest drop. The company lost 96% of its peak value, with its market-to-net-asset-value falling from 75 to just 0.7. Other companies trading below their Bitcoin value include Tether-backed Twenty One, Semler Scientific, and The Smarter Web Company.
Despite these problems, the average market-to-net-asset-value across all listed treasury companies remains at 2.8. This number dropped from 3.76 in April, but the decline mainly affects smaller companies. Lunde noted that larger Bitcoin treasury companies still trade at higher values than their BTC holdings.
Get seen where it counts. Advertise in Cryptopolitan Research and reach crypto’s sharpest investors and builders.
