French bitcoin treasury firm Capital B reported a net loss of €69.5 million ($78.1 million) for the first half of this year, a more than thirtyfold increase from the €1.9 million ($2.1 million) loss recorded in the same period of 2024, according to half-year results released Thursday. The company attributed roughly €67.5 million ($75.9 million) of that loss to an additional bitcoin impairment charge based on bitcoin's price as of June 30. The charge, the company stressed, had no cash impact.

That framing deserves scrutiny. An impairment accounting loss does not drain a treasury, but it does signal that bitcoin traded below the firm's carrying cost at the measurement date. Capital B's average acquisition price sits at €87,805 ($98,768) per bitcoin — a bar the market must clear for the impairment to reverse under current accounting treatment.

Revenue, by contrast, grew modestly. The firm posted €5.8 million ($6.5 million) in first-half revenue, up 3.5% from €5.6 million a year earlier. That figure is small relative to both the loss and the balance sheet: revenue covers less than 2% of the €310.6 million ($349.4 million) the company has spent acquiring bitcoin. The business model, in plain terms, is now overwhelmingly a leveraged bet on bitcoin rather than an operating company.

How fast is the bitcoin reserve growing?

As of Sept. 30, Capital B's strategic bitcoin reserve stood at 3,538 BTC, up 25.3% from 2,823 BTC in January. Total acquisition cost reached €310.6 million ($349.4 million), averaging €87,805 per coin. The company also reported a "BTC yield" of 2.2% for the first nine months of the year — a metric measuring the percentage change in bitcoin holdings per fully diluted share, not a cash return.

That 2.2% figure warrants a caveat. BTC yield rises whenever a company issues shares or convertible instruments to buy bitcoin at prices below its average cost, and it says nothing about whether existing shareholders are better off after dilution. Capital B does not disclose that comparison in the release.

The accumulation has accelerated. In September, the firm bought 376 BTC for €25.3 million ($28.4 million), its largest purchase of the year, funded through recent capital raises including investments from Blockstream CEO Adam Back.

Where is the funding coming from?

Capital B raised €27.5 million ($30.9 million) during the first half of this year, followed by another €31.7 million ($35.6 million) between July 1 and Oct. 15, according to the report. Combined, that is roughly €59.2 million ($66.5 million) in under ten months — more than ten times the firm's annualized first-half revenue.

The company, formerly known as The Blockchain Group, rebranded in July 2025 to concentrate on its bitcoin treasury strategy. The shift mirrors the playbook of other corporate bitcoin accumulators, though Capital B's scale remains modest by comparison: 3,538 BTC represents a fraction of what the largest public treasury holders control.

What happens next?

The operational question is sustainability. Impairment charges will recur each reporting period that bitcoin sits below the firm's €87,805 average cost, and future capital raises depend on investor appetite for equity issuance priced against a bitcoin-heavy balance sheet. Watch the next quarterly report for whether the September purchases — made after the June 30 measurement date — trigger a further impairment or a reversal.

By Elena Vasquez