BTC AB leaves 47.7% of preferred share offer unsold

Swedish Bitcoin treasury firm BTC AB will list its BTC PREF preferred share on the Spotlight Stock Market on July 20 after investors left 47.7% of a rights offering unfilled.

Investors subscribed for 102,025 of the 195,078 offered shares, or 52% of the issue, producing about SEK 12.2 million gross and SEK 11.9 million net. The offer could have raised roughly SEK 23.4 million at full subscription. The issuer reported proceeds are intended primarily for additional Bitcoin purchases and to build a liquidity reserve for preference dividends.

The issue was priced at SEK 120 with a SEK 1 monthly dividend, equal to SEK 12 per year. At the SEK 120 subscription price, the scheduled payments imply a 10% cash yield.

Because the dividend is fixed in cash, the implied yield changes with market price: at SEK 100 the SEK 12 annual payment equals 12%; at SEK 90 it equals about 13.3%. Under the share terms, dividends may be deferred; unpaid shortfalls accumulate without interest and have priority over dividends on Class B common shares. Stated yields are therefore indicative, not guaranteed.

Market trading will determine the security’s yield and liquidity. A sustained discount to SEK 120 would raise the indicated cash yield above 10%. Sparse trading could produce volatile quoted prices driven by small trades.

BTC AB has not disclosed the final allocation of the partially subscribed proceeds or the size of the resulting dividend reserve. Investors will be able to assess dividend coverage and reserve adequacy once trading begins.

For context, a large issuer of preferred stock reports about $15.46 billion of preferred stock and a $3 billion reserve, equivalent to roughly 20.4 months of dividend coverage, and maintains a policy that reserves cover at least 12 months of expected preferred dividends and debt interest. BTC AB would need to disclose reserve levels and any formal policy if it plans further preferred equity offerings.