H100 Group (H100), a Swedish health-technology company, said it reached an agreement that could see Blockstream CEO Adam Back lend it as much as 750 million kronor ($79 million) to support its long-term bitcoin BTC treasury strategy.
Back signed up for an initial 150 million-krona tranche, known as Tranche 6, of a convertible loan. He also holds a right to participate in two follow-up tranches, each currently set at 75 million kronor, though the company intends to that amount if market conditions allow.
The financing structure prioritizes speed and cost-efficiency over a traditional rights issue and allows Stockholm-based H100 to invite other investors on equal terms. Convertible loan terms were set through arm’s length negotiations, with Tranche 6 priced at 6.38 kronor per share, a 33% premium to market.
“Unexpectedly, given the strong reception, Tranches 1-4 became in-the-money rapidly,” Back said in a statement to CoinDesk. “I was expecting [H100] would convert them over time as they reached in-the-money status”.
H100 Group currently holds 24.41 BTC, according to BitcoinTreasuries.net. The company’s shares 22% on Monday.