France-based Capital B is preparing to launch a bitcoin-backed credit instrument for the European market, aiming to offer double-digit yields while keeping volatility relatively low, board director Laizet said.
Bitcoin-backed credit product targets european expansion
The planned instrument is backed by Capital B’s holdings of 3,139 BTC and is modeled on existing products such as Strategy’s STRC and Strive’s SATA. The company, listed on Euronext Growth Paris under the ticker ALCPB, is positioning the offering as part of a broader effort to establish Europe as a hub for regulated bitcoin-based financial products.
The structure allows Capital B to use its bitcoin treasury as collateral to raise capital, offering yield-generating exposure tied to the performance of its digital asset reserves.
Yield expectations tied to bitcoin performance
Laizet said the company expects the product to deliver double-digit returns, supported by bitcoin’s historical appreciation, which he estimated in the range of 30% to 60% annually. This approach mirrors recent activity by Strategy, which sold 32 BTC to fund STRC dividend payments before later acquiring 1,587 BTC.
Comparable instruments in the market include Strategy’s STRC with an 11.5% yield and Strive’s SATA, which offers around 13% and recently began daily dividend distributions.
Risks remain amid market volatility
The model remains highly dependent on bitcoin’s price movement. Recent market fluctuations saw bitcoin briefly fall below $60,000 before stabilizing between roughly $62,000 and $74,000 in early June, highlighting the sensitivity of such products to broader market conditions.
Macroeconomic factors also add pressure. Expectations that the Federal Reserve could raise interest rates in 2026 have weighed on risk assets, including cryptocurrency markets.
Capital B said it manages custodial and counterparty risks through regulated banking partners, aiming to provide additional safeguards for its holdings.
Growing interest and regulatory tailwinds
The company reported a tenfold increase in participation from traders exploring digital credit products compared with the previous year, reflecting rising demand for structured crypto-linked instruments.
At the same time, Europe’s regulatory environment is evolving. The Markets in Crypto-Assets (MiCA) framework is set to be fully implemented by the end of 2026, requiring crypto service providers to obtain authorization. This is expected to create a more structured market and could support broader institutional participation.
Survey data cited by the company shows 66% of market participants now prioritize regulatory compliance when selecting custodians, up from 25% in 2025.
Ambitious accumulation strategy
Capital B is expanding its bitcoin treasury alongside the planned product launch. The firm aims to hold 15,000 BTC by 2027 and ultimately reach ownership of 1% of bitcoin’s total supply by 2033.
A shareholder vote is scheduled to consider authorizing up to €5 billion in equity issuance and as much as €100 billion in credit instruments to support this strategy.
Backers of the company include Back, Fulgur Ventures, and other firms focused on bitcoin-related capital markets.
Explore how institutional BTC products shape yields in Europe in our deep dive: on-chain private credit is here.
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