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Capital B, a treasury firm focused on Bitcoin and listed in Paris, is gearing up to introduce a digital credit product tailored for the European market, according to a report in The Block.
The product is constructed on Strive's SATA and Strategy's Short Duration High Yield Credit Stretch – STRC perpetual preferred stock. STRC, referred to as "Stretch," is a variable-rate perpetual preferred stock issued by Strategy (formerly MicroStrategy).
It aims to provide consistent, high-yield monthly income by utilizing capital raised to strategically acquire Bitcoin. It serves as a balanced option between conventional corporate bonds and common stock.
Capital B board director Alexandre Laizet made the announcement at BTC Prague, marking a major push to bring the "digital credit" concept, which was first created by Michael Saylor's Strategy, to the European capital markets.
The stakes are significant.
Capital B targets to amass 1% of Bitcoin's total supply, or around 210,000 BTC, by 2033. It has set an intermediate goal of attaining 15,000 BTC by the end of 2027 and presently has 3,139 BTC in its treasury.
If the new instrument is approved, it might revolutionize how European institutions can gain exposure to Bitcoin without really owning the product.
European regulation and taxation provide obstacles that Saylor's strategy has not yet faced, and there is a wide gap between ambition and execution.
The STRC Playbook: What Capital B is Copying
Originally issued in July 2025 with a yield of 9%, the STRC-ticker "Stretch"-variable-rate perpetual preferred stock has since seen its dividend boosted to 11.5%.
Strategy adjusts the payout rate monthly in increments of 0.25% to keep the price stable, and it is built to function near to a $100 par value.
In May, STRC became the biggest tradable monthly-paying preferred listed in the US with an outstanding amount of nearly $10.5 billion, which is almost 2.5 times the largest preferred of any US bank.
At first look, the mechanics might not seem complicated.
The current market value of Strategy's 843,706 BTC is at $61 billion. A capital structure has also been put in place to give different types of investors different risk-return profiles, on top of the asset base.
STRC is the most yielding choice in the chosen stack, by a wide margin.
Strategy is able to pay out dividends in cash every month thanks to its growing Bitcoin holdings and its ability to attract new investors, rather than its operating cash flow.
As an alternative to conventional fixed income, Saylor has promoted STRC as a "digital credit" product.
With a return of 11.5%, volatility below 3%, a Sharpe ratio close to 4, and around $400 million in daily liquidity, the plan appears to be a compelling option for potential backers.
This tool has generated $8.5 billion in AUM in just nine months and has given the Strategy more than $3.5 billion to spend on Bitcoin purchases.
The model does, however, have a few major flaws.
The sustainability of STRC's yield has been questioned by critics, who believe that it might be overly dependent on the continued rise in Bitcoin prices and the company's ability to source funds in favorable conditions.
This approach could be at risk during a market decline. This dividend is based on the assumption that bitcoin would continue to appreciate between 30 and 60% each year, rather than guaranteed cash flows. That premise collapses in the face of a prolonged recession.
Capital B’s Ambition: Bigger Than Just Copying
Laizet confidently expresses the magnitude of Capital B’s aspirations. “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,” he told The Block at BTC Prague.
“Our laser focus is to provide a digital credit instrument adapted to Europe that could really change the configuration of the markets,” Laizet added.
Using Capital B's Bitcoin holdings as its core asset, the proposed product aims to offer excellent dividends with low volatility.
According to Laizet, businesses which have Bitcoin in their vault are in a prime position to support such products. This is because the cryptocurrency, which is growing at a pace of 30-60% per year, provides the equivalent of 40-50 years of cash flows that are already part of their financial statements.
There is a lot riding on the timing.
Asset accumulation has been a top priority for Capital B. Notable investors including Blockstream CEO Adam Back and the Paris-based asset management TOBAM helped the company close a €15.2 million private placement earlier this year.
After changing its name from The Blockchain Group to Capital B in July 2025, the company is now traded on Euronext Growth Paris under the symbol ALCPB.
Financial firm Capital B sought shareholder approval to issue new equity and credit instruments totaling up to €116 billion and €5 billion, respectively, to boost Bitcoin accumulation, just weeks before the STRC-style instrument was announced.
The proposal will be put to a vote by shareholders at the June 17 combined general meeting of the corporation.
Considering the company's valuation is only €0.636 per share, the results are astounding.
An ambitious and daring commitment is reflected in the €116 billion in credit instruments that have been authorized but not issued.
Capital B is not only attempting to replicate STRC; it is emerging as Strategy's European competitor, aspiring to reach or surpass Saylor's scale, despite the region's significantly limited institutional Bitcoin ecosystem.
European Problem: Taxes, Regulation, & Institutional Skepticism
When it comes to the European market, Laizet is absolutely correct: High taxes and inappropriate, out-of-date rules are a problem for Europe. Institutional investors in Europe have been more cautious in their adoption of bitcoin than their American counterparts.
Although spot Bitcoin exchange-traded funds (ETFs) in the United States have attracted investments amounting to tens of billions of dollars, no equivalent product is available in Europe.
While MiCA (Markets in Crypto-Assets Regulation) does lay out rules for the industry, they do not yet include cryptocurrency loans.
Capital B must handle this problem with utmost caution because of its complexity.
The firm has assembled a group of experts in banking, corporate finance, technology, and capital markets, and it has declared its intention to work only with licensed financial institutions.
While issuing preferred stock is a well-established and known process in the US market, this technique has not encountered the persistent regulatory ambiguity that continues to offer obstacles.
Additionally, the amount of interest among investors must be taken into account.
According to Laizet, demand in Capital B's digital credit products has increased tenfold from last year.
Having said that, interest and allocation are not the same thing.
The historical volatility of the Bitcoin market has presented substantial difficulties for European institutions.
With STRC trading at $95.20 as of June 15, below its $100 nominal value, skepticism about an instrument promising double-digit returns with minimal volatility is understandable.
The Risks: What Could Go Wrong
Laizet was aware of the possible problems, such as the collapse in Bitcoin value, custody issues, and counterparty threats. An "almost nonexistent" chance, in his opinion, existed that Bitcoin would eventually hit zero. But that's not an assurance.
As far as priorities go, the execution procedure is number one.
Even while 3,139 BTC is a lot of money, it doesn't change the game, and Capital B isn't a major player. In order to reach 15,000 BTC by 2027, about 12,000 extra Bitcoin will need to be secured in the following 18 months.
That calls for either a dramatic rise in available funds or a sustained decline in Bitcoin prices, making them more accessible and affordable-or perhaps both.
The authorization of €116 billion in credit instruments and €5 billion in equity funds provides a strong legal basis; nevertheless, the use of these funds will depend on when shareholders approve and current market circumstances.
An important factor to think about is the instrument's structure.
STRC's large Bitcoin holdings-a total of 843,706 BTC-enable it to function efficiently and generate enough notional value to maintain the dividend.
The 3,139 BTC basis of Capital B is substantially smaller.
In order to attract institutional investors, the firm has to significantly increase its cash on hand.
Laizet cited the recent sale of 32 BTC to enable STRC payouts and the subsequent acquisition of 1,587 BTC, as evidence of the capital recycling concept.
But the continued appreciation of Bitcoin is crucial to that strategy.
It is not feasible to acquire additional Bitcoin at the same time as paying dividends by dumping bitcoin in a flat or declining market.
A Bet on Bitcoin’s Long-Term Trajectory
The success of Capital B's STRC-style instrument is dependent on three things: first, that European banks are ready to give digital credit, second, that Capital B can execute well at scale, and third, that Bitcoin will keep appreciating at its historical rates.
The most important thing is the first bet. The system is useless unless the value of bitcoin continues to rise steadily.
Laizet subtly recognizes this when he contends that bitcoin treasury firms currently possess 40-50 years of cash flows on their balance sheet.
That is a strategic position on bitcoin’s long-term outlook, presented in the terminology of fixed income.
For those looking to grow their wealth, the key consideration isn't just whether the asset will provide impressive returns-it certainly could, depending on Bitcoin's performance.
The inquiry revolves around whether those yields serve as a reward for assuming the volatility associated with bitcoin prices, or if they signify a legitimate new asset category that can coexist with conventional fixed income options.
For the last twelve months, Saylor has been arguing that STRC should be included in all investment portfolios. The argument is now being made for Europe by Capital B.
Bitcoin ETFs have been well received by the US market, Saylor has a massive $61 billion Bitcoin foundation, and there is a $10.5 billion preferred stock scheme.
Capital B is dedicated to fulfilling its promise, has changed its ticker symbol, and now has 3,139 BTC. That doesn’t imply Capital B is destined for failure. It indicates that the risk associated with execution is significantly greater than what the promotional materials imply.
Laizet chose not to provide any insights regarding the anticipated schedule for the launch of the instrument.
Until details emerge on the instrument’s structure, dividend mechanics, and investor protections, a wise approach is to maintain a healthy skepticism while remaining curious.
The digital credit model is currently undergoing real-time stress testing. STRC has demonstrated that large-scale investors are willing to purchase yield products backed by bitcoin.
Capital B is on the verge of discovering if there is demand in Europe and if a smaller entity can successfully emulate Saylor’s strategy in a region that has not yet fully adopted the concept.
Blockhead
