In a move that’s shaking up both the health tech and crypto sectors, Adam Back, the CEO of Blockstream, has spearheaded a 21 million Swedish krona ($2.2 million) funding round for H100 Group AB, a Swedish health tech company making waves with a bold Bitcoin acquisition strategy. This intriguing development was announced last week by H100, which is now set to bolster its Bitcoin holdings significantly.
A Strategic Pivot
According to the company’s statement on May 25, the funds, secured via 0% interest convertible loans, will be used to purchase Bitcoin, aligning with its recently declared shift towards Bitcoin acquisition on May 22. Back, renowned for his cypherpunk advocacy and early involvement in Bitcoin, personally invested approximately $1.4 million. The remaining $800,000 was contributed by a mix of investment firms including Morten Klein, Alundo Invest AS, Race Venture Scandinavia AB, and Crafoord Capital Partners.
This infusion of capital will allow H100 to acquire around 20.18 Bitcoins at current market prices, adding to the 4.39 Bitcoins it purchased on May 22. Thus, H100’s Bitcoin treasury will soon stand at roughly 24.57 Bitcoins, marking its commitment to this unconventional financial strategy. This follows a pattern of institutional adoption, which we detailed in our analysis of corporate treasury investments.
A Ripple Through the Market
The market responded enthusiastically to H100’s Bitcoin pivot. Shares of the company surged 37% following the May 22 announcement, with an additional 5.33% uptick noted the next day, reaching 1.29 SEK (14 US cents), according to data from Bloomberg. This investor optimism reflects a growing confidence in the integration of Bitcoin into corporate treasuries, a trend that appears to be gaining traction across various sectors globally.
Sander Andersen, CEO of H100, expressed in a social media post the alignment between the Bitcoin community’s values of individual sovereignty and the ethos of H100. He emphasized that this strategic move would resonate with the audience they are catering to: individuals seeking independence from traditional health systems.
The Bigger Picture
H100’s decision positions it as a trailblazer in Sweden, becoming the first public company in the nation—and one of the first in Europe—to adopt a Bitcoin treasury policy. This move places H100 among a growing list of 112 public firms worldwide holding Bitcoin as a treasury asset, according to BitcoinTreasuries.NET data. Notably, ten of these companies are based in Europe, underscoring the continent’s cautious yet progressive engagement with cryptocurrency. Similarly, Metaplanet is expanding its efforts, as highlighted in Metaplanet Registers U.S. Treasury Arm to Grow Its Bitcoin Reserve Strategy.
The convertible loans issued by H100 come with an intriguing option: they can be converted into equity at a rate of 1.3 Swedish krona (11 US cents) per share. If H100’s share price averages more than 33% above this conversion price over 60 trading days, the company reserves the right to convert these loans into equity. This could result in the issuance of approximately 16,153,900 new shares, potentially diluting existing shares by about 12%.
Looking Ahead
As H100 embarks on this Bitcoin-centric strategy, questions loom about the sustainability and impact of such a move. Could this be a harbinger of a broader trend among European companies, or will it remain an isolated case? The fluctuations in H100’s stock following its announcements suggest that the market is both intrigued and cautiously optimistic.
With the crypto markets as volatile as ever, the real test will be whether H100’s bold strategy can withstand the ebb and flow of Bitcoin’s price gyrations. As the company navigates this uncharted territory, all eyes will be on its performance and the potential ripple effects throughout the industry.
Source
This article is based on: Adam Back leads $2.2M raise for Swedish health firm’s Bitcoin buys
Further Reading
Deepen your understanding with these related articles:
- Metaplanet Issues $25M Bonds to Buy More Bitcoin
- Strategy’s $84B Bitcoin Expansion Plan Backed by Wall Street Analysts
- Strategy Raising Another $21B to Buy Bitcoin, Posts Large Q1 Loss on BTC Price Decline
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
