Swedish health-tech company H100 Group has completed a major deal that has more than tripled its bitcoin holdings. The company is now the second-largest publicly listed bitcoin treasury company in Europe.

H100 announced on August 10 that it had completed the acquisition of Norwegian companies Moonshot AS and PDI AS through NSD AS. The deal added 2,455.37 BTC to H100’s treasury.

Before the deal, H100 held 1,051 bitcoin. After the acquisition, its total holdings increased to 3,506.4 BTC. At bitcoin prices around the time of the deal, H100’s bitcoin holdings were worth about $228 million.

H100 is now behind only Germany’s Bitcoin Group SE in Europe, which holds about 3,605 BTC.

The acquisition has moved H100 ahead of several other European bitcoin treasury companies. Before the deal, France’s Capital B ranked second with about 3,140 bitcoin, followed by the UK’s Smarter Web Company with about 2,712. H100 now holds 3,506.4 bitcoin, putting it ahead of both companies.

One of the most important parts of the deal is that H100 did not pay the sellers with cash. Instead, the deal was completed using a structure H100 described as “Bitcoin-for-Bitcoin.”

The sellers received newly issued H100 shares in exchange for the bitcoin they brought into the company. H100 issued 790,534,666 new shares to the sellers. The shares were priced at 1.86 Swedish kronor each.

The total value of the transaction was about SEK 1.47 billion, or roughly $155 million.
The value of the deal was based mainly on how much bitcoin each side contributed. Other assets and debts were not included in that calculation.

H100 used a bitcoin reference price of SEK 598,926.69, or about $62,900, based on the Coinbase BTC/SEK price on July 31.

The company also issued promissory notes worth about SEK 1.47 billion to the sellers. Those notes were then exchanged for the newly issued shares. As a result, no cash was needed to complete the acquisition.

H100 said the deal was the largest M&A transaction in Europe’s public bitcoin equity sector. The company also called it the first public-market M&A deal completed on a “bitcoin-for-bitcoin” basis.

The deal greatly increased H100’s bitcoin holdings, but it also created many new shares.
H100 issued about 790.5 million new shares. This means existing shareholders were diluted by about 70%.

In simple terms, people who owned H100 before the deal now own a much smaller percentage of the company. However, H100 said the deal was structured to protect the amount of bitcoin represented by each basic share.

The company said that bitcoin per basic share remains unchanged. H100 also said that bitcoin per fully diluted share increased by about 5%.

H100 Executive Chairman Sander Andersen said the company believes bitcoin per share is more important than simply looking at the total amount of bitcoin owned by the company.

“We chose this structure because it is the cleanest expression of what we believe: Bitcoin per share is the metric that matters,” Andersen said, adding that the deal protected that measure while almost tripling H100’s total bitcoin holdings.

The acquisition also changed who controls H100. Geir Harald Hansen, the main seller in the transaction, received a large number of the new shares. He now owns about 70% of the enlarged company.

Hansen has agreed not to sell those shares for 12 months, except in certain situations. The company did not provide further details about what circumstances would qualify as exceptions.

Hansen is also a longtime Bitcoin industry figure. He founded Bitminter, a Bitcoin mining pool, in 2011.

Eirik Grøttum, CEO of Moonshot, said the companies chose H100 because they share a similar long-term vision. “Together, we look forward to creating long-term value for all shareholders,” Grøttum said.