Fragbite Group stock shoots up 64% following plans to establish a Bitcoin treasury
Swedish gaming and web3 company Fragbite Group vows to establish a Bitcoin treasury to ‘future-proof’ its balance sheet. The firm has also appointed a dedicated director to oversee its Treasury operations.
According to a recently published press release, the company’s Board of Directors has approved a new business strategy that would focus on managing its profits to invest some of its corporate funds into acquiring BTC (BTC).
“The company views Bitcoin not only as a hedge against inflation, but as a global monetary network with the potential to radically transform the way companies store value,” wrote the company in its statement.
As part of the new business model shift, the company plans to raise capital to buy Bitcoin through various ventures, starting with the issuance of 0% convertible bonds that are worth around 5 million krona or equal to $530,000 in value.
Fragbite Group aims to offer a conversion price for the interest-free shares at about 10 krona ($1.05) per share, in accordance with the 110% premium to a 20-day volume weighted average price. The firm plans to finalize subscriptions for the bonds sometime in the near future.
Shortly after the company announced the shift to Bitcoin accumulation, the Fragbite stock soared as high as 64% in the past 24 hours. FRAG.ST reached a peak price of SEK 9.94 per share on June 30.
In addition, the company claimed that the shift in business model will not directly affect its operations significantly. This is because most of the company’s day-to-day operations are already carried out in a “decentralized manner.”
A new Treasury Director for Fragbite Group
As part of the new Bitcoin treasury strategy, Fragbite has created a new role within the corporation. The new role of Treasury Director will be remunerated through a performance-based incentive program, which aims to create value through its holdings that align with shareholder interests.
Fragbite Group has tapped Lead Game Designer of FunRock and proclaimed Bitcoin advocate, Patrik von Bahr, to lead the unit as Treasury Director. He believes that the ability to measure Bitcoin per share metrics and the ability to elevate value from BTC holdings will become “fundamental” to companies in the future.
“By being early movers in this paradigm shift, we look forward to establishing disproportionately much shareholder value in both the short and the long term,” said von Bahr in his statement.
Establshed in 2015, Fragbite Group is a Swedish corporate entity that consists of a collection of subsidiary companies that that develop, adapt and publish games and content relevant to the gaming, e-sports and web3 fields. The company’s products are designed for PC, mobile, console and more modern platforms built on the blockchain.
Fragbite Group’s main office is located in Stockholm, Sweden and it is listed on the Nasdaq First North Growth Market.
