H100 has reportedly signed a letter of intent to acquire two Bitcoin treasury companies and their BTC holdings, signalling a potential roll-in of a "buy-out phase" for digital assets treasuries.
Sweden-listed health-tech and Bitcoin treasury company H100 Group has entered into a letter of intent (LOI) with the shareholders of privately-held Norwegian Bitcoin companies Moonshot and Never Say Die to acquire all shares of the target companies in exchange for newly issued H100 stock.
The proposed transaction would be completed with newly issued H100 shares and no cash consideration, a structure intended to preserve the sellers’ Bitcoin exposure while moving the assets into a larger listed vehicle, according to a Monday press release.
If the deal goes ahead, it would make H100 the second-largest listed Bitcoin treasury company in Europe behind Germany’s Bitcoin Group, which holds 3,605 BTC. H100 currently holds 1,051 Bitcoin, while the target companies hold about 2,450 BTC, bringing H100’s total to 3,501 BTC (worth around $239.7 million at current prices) after the deal, the release states. — Cointelegraph report
Treasury-as-a-Service (TaaS)
There's a couple misconceptions when it comes to digital assets treasuries and one of them is that these companies "simply" want to buy these assets as an investment strategy.
The reality is that DATs are forming a new service sector for traditional investors to explore emerging markets.
Every purchase isn't because a company has money to spend and likes Bitcoin, rather, it's a signal for which companies are building towards the new solution class.
Right now, there are 195 companies building in this environment when it comes to Bitcoin exposure, specifically, but the problem is, as of early March, following market crash, about 77% of these treasury companies were reported underwater with losses estimated at over $25 billion.
Additionally, at least 37 of the top 100 Bitcoin treasury firms are trading below the Net Asset Value (NAV) of their holdings, meaning that not only are their Bitcoin exposure in losses, the traditional assets backing these purchases are also under.
Buyouts
Bitcoin supply held by public companies is currently at 1.18M, worth approximately $83.82 billion, at current prices.
This represents 5.62% of Bitcoin's max supply. The growth trajectory set out for the asset, makes this number of significant value.
As a result, it is expected that as the industry evolves and both internal and broader market environments impact general company operations, some of these companies will get acquired or absorbed into larger or more stable players.
Of course this creates a reality where much of these assets supplies get controlled by a very limited number of companies, potentially creating an incentive to manipulate the economy of these networks.
Nonetheless, the future of decentralized assets will have centralized companies or entities playing roles that are closely similar to that of traditional asset managers.
Whenever market conditions grow tough, much will get absorbed by others. Decentralized entities must be prepared to be a part of buyouts to maintain economic and network/ecosystem sovereignty.