Bitcoin Treasury Capital to Issue Europe’s First BTC-Backed Dividend on August 19

Bitcoin Treasury Capital AB, based in Stockholm, is poised to become the first European firm to pay a dividend backed by Bitcoin. The company has announced its inaugural preferred stock dividend, set for August 19, where it will distribute SEK 1.00 per share to holders of its BTC PREF security.

This payment represents the first monthly installment of a fixed 10% annual dividend, aimed at attracting yield-seeking investors into the Bitcoin treasury space while mitigating exposure to Bitcoin's price volatility.

BTC AB’s preferred shares, which began trading on July 20 under the ticker BTC PREF on Sweden’s Spotlight Stock Market, allow holders to receive predictable monthly payouts. The company utilizes the proceeds from preferred share issuances to accumulate more Bitcoin for its treasury. Currently, BTC AB holds approximately 172 to 174 BTC and operates without debt after repaying all loans.

Unlike MicroStrategy's model, which involves leveraging debt to acquire Bitcoin, BTC AB has established a clean balance sheet. The preferred stock mechanism enables the company to raise capital for Bitcoin purchases while maintaining a tidy capital structure. This approach also addresses concerns regarding dilution of existing shareholders, as the preferred shares do not dilute the common shareholders’ Bitcoin-per-share ratio.

As the August 19 payment approaches, it is noteworthy that the amount, SEK 1.00 per share, translates to roughly $0.10 at current exchange rates. BTC AB's latest Bitcoin acquisition occurred on August 5 at approximately $64,435 per coin, amidst a period of market consolidation.

This dual-class share structure positions BTC AB distinctly within the European market, offering a yield that is not typically available through existing Bitcoin investment products, which often provide no yield at all.