Capital B, a Paris-listed company that focuses on building a bitcoin treasury, plans to carry out a 10-for-1 reverse stock split in September. The company, formerly known as The Blockchain Group, says the move is aimed at making its shares more attractive to large institutional investors while continuing its bitcoin strategy.

The reverse stock split means that every 10 existing shares will become one new share. As a result, the total number of shares will fall from about 300.7 million to around 30.1 million. The change will take effect on September 8.

The company also said the face value of each share will increase from €0.08 to €0.80. However, it stressed that the move is only a technical change and does not increase or reduce the overall value of shareholders' investments.

Capital B described the transaction as a "purely technical exchange" and said it is meant to "support the company's institutional development and to open the company's shares to a broader universe of investors."

The main goal of the reverse stock split is to increase the company's share price. Capital B's shares have recently traded at around €0.51. If the company's total market value stays the same, each new share would trade at about €5.10 after the reverse split.

Face value is the nominal value assigned to a company's shares when they are issued and is primarily used for accounting, legal, and regulatory purposes. It typically remains unchanged over time.

Market value, however, is the current price at which a share trades on the stock market and is determined by supply and demand, investor sentiment, the company's financial performance, and future growth expectations.

A higher share price could help the company attract more institutional investors. Many large investment firms are not allowed to buy stocks that trade below a certain price. By raising its share price through the reverse split, Capital B hopes to qualify for more investment funds.

The reverse stock split process will begin on August 6 and end on September 7.

Investors whose share holdings are not multiples of 10 can buy or sell shares before September 7 to make their holdings even. If they do not, the extra fractional shares will be sold by financial intermediaries, and the cash from those sales will be paid to investors starting September 14.

The company's current shares will stop trading after September 7. The new shares will begin trading on September 8 with a new ISIN, which is the identification code used for stocks. September 9 will be the record date, and settlement of the new shares will take place on September 10.

Capital B will also temporarily stop conversions of certain convertible bonds and exercises of share warrants between August 17 and September 10. After the reverse split is complete, the company will adjust these financial instruments so they match the new share structure.

For example, bond conversion prices will increase by a factor of 10, while warrant ratios and unvested free shares will be reduced by the same amount. These changes are meant to keep their overall value the same after the reverse stock split.

The reverse stock split does not raise new money or add more bitcoin to the company’s balance sheet. It only changes the number of shares and their value per share.

Capital B currently holds 3,139 bitcoin, making it the second-largest publicly listed corporate bitcoin holder in Europe, according to BitcoinTreasuries.net. Germany's Bitcoin Group SE ranks first with 3,605 Bitcoin.