French BTC treasury firm Capital B developing STRC-style bitcoin credit instrument

Paris-listed bitcoin treasury company Capital B is working on launching a credit instrument for the European market, according to board director Alexandre Laizet.

Speaking with The Block's Gareth Jenkinson at BTC Prague, Laizet said that the company is focused on launching a bitcoin-backed credit product modeled after Strategy's STRC and Strive's SATA.

"Our role, our responsibility, is to provide for a solution in Europe which is crippled by high taxes, crippled security issues, and old, unadapted regulations for the digital era," Laizet said. "Our laser focus is to provide a digital credit instrument adapted to Europe that could really change the configuration of the markets."

According to Laizet, the upcoming instrument aims to deliver double-digit yields with volatility under two digits, drawing on the company's bitcoin (BTC) holdings as the underlying asset. As of today, Capital B holds 3,139 BTC in its treasury.

During the interview, Laizet expressed confidence that bitcoin treasury companies can deliver such double-digit returns in the age of monetary devaluation.

"In the traditional finance world, if you were to take an obligation to pay double-digit performance, you would have to promise that you will generate 40 years, 50 years of cash flows that will be double-digit," Laizet said. "A bitcoin treasury company already has 40-50 years of cash flows on their balance sheet today — that asset they have on the balance sheet is growing at 30-60% annually."

Laizet said bitcoin's substantial appreciation allows the instruments to remain sustainable, using Strategy as an example, where the company recently sold 32 BTC to pay STRC dividends, only to purchase 1,587 BTC soon after. He added that Capital B has seen a 10-fold growth in the number of investors interested in the digital credit space compared to last year.

The Capital B executive acknowledged that these digital credit instruments carry risks, including bitcoin devaluation and counterparty risk. Laizet added that the likelihood of bitcoin's value going to zero is nearly nonexistent.

"Of course there is risk of execution, there is a risk of custody, but we work only with regulated banks. We have a team of capital market banking, technology, corporate finance experts," said Laizet, who did not comment on the expected timeline of the instrument's launch.

Capital B, listed on Euronext Growth Paris under ticker symbol ALCPB, positions itself as Europe’s first and largest bitcoin treasury company. Bitcoin-focused investors, including Adam Back, Fulgur Ventures, and others, back the company.

According to the company's website, the bitcoin treasury firm's goal is to accumulate 1% of bitcoin's total supply by 2033. It also aims to hold 15,000 BTC by the end of 2027.