The crypto company K33 has entered into a non‑binding letter of intent to acquire 46.27 percent of Canadian firm Sixty Six Capital, which will increase K33’s indirect bitcoin exposure and strengthen its position in North American capital markets
In a press release, K33 states that the acquisition will reinforce the company’s balance sheet and expand its ability to use bitcoin actively in its operational business. K33 is led by CEO Torbjørn Bull Jenssen (pictured).
Sixty Six Capital currently has a bitcoin exposure of 149 BTC, and completing the transaction would thus increase K33's overall indirect bitcoin exposure. K33 has an active bitcoin treasury approach, where the balance sheet is used as part of the business model rather than a mere passive holding. Through a more efficient bitcoin balance sheet, K33 envisions being able to support revenue-generating activities such as treasury backed lending and other capital efficient solutions.
Sixty Six Capital is a Canadian bitcoin treasury company listed on the Canadian Securities Exchange under the ticker SIX, with a strategy of accumulating bitcoin over time. The agreement between the parties links K33's operational platform more closely to a pure bitcoin treasury model, while potentially increasing K33's balance sheet and room to maneuver in the market.
At the core of Sixty Six Capital's strategy is to act as a bitcoin treasury company with the goal of increasing bitcoin per share over time. This strategy is expected to continue unchanged even after K33 eventually becomes the largest owner.
According to the letter of intent, K33 wants to buy a 46.27 percent stake in Sixty Six Capital. The consideration is planned to be structured as a combination of cash and newly issued K33 shares, with approximately 70 percent of the purchase price to be paid in cash and about 25 percent in shares, corresponding to approximately 95 percent of the net asset value associated with the shares being acquired.
The transaction is contemplated completed as a negotiated purchase from a limited number of shareholders and is not expected to trigger obligation bids under Canadian securities rules. The final stake, the exact number of new K33 shares and other terms are subject to further due diligence, final agreements and customary approvals.
The deal will also give K33 an increased presence in Canada and indirectly in the U.S. capital market. The company emphasises that this could strengthen its position as a provider of services to larger retail clients, companies and institutions seeking to use digital assets in treasury and investment strategies.
K33 offers customised support, currency solutions, secure custody and lending products related to digital assets, among other things. The K33 announcement highlights this as a distinction against more passive bitcoin treasury companies, in that balance sheet growth is more directly linked to operational capacity and revenue generation.