"Adam Back Drives $2.2M Funding for Swedish Health Bitcoin"

Adam Back leads funding round for Swedish health firm’s Bitcoin buys

Blockstream CEO Adam Back has taken the lead in a 21 million Swedish krona ($2.2 million) funding round for the Swedish health tech company H100 Group AB. The company recently announced its decision to start purchasing Bitcoin, with Back playing a significant role in the fundraising efforts.

H100 disclosed on May 25 that the funds received through 0% interest convertible loans would be utilized to acquire Bitcoin (BTC) in alignment with its recent Bitcoin-buying strategy unveiled on May 22.

Back, a prominent figure in the Bitcoin cypherpunk community, contributed approximately $1.4 million towards the raise, while the remaining $800,000 came from investment firms Morten Klein, Alundo Invest AS, Race Venture Scandinavia AB, and Crafoord Capital Partners.

This funding would enable H100 to purchase around 20.18 Bitcoin at current market prices, in addition to the 4.39 Bitcoin acquired on May 22, bringing the company's total Bitcoin holdings to approximately 24.57 BTC.

H100 Group AB’s strategic moves

Following the funding round led by Adam Back, H100 shared that the convertible loans procured do not bear any interest and are set to mature on June 15, 2028. The loans have the option to be converted into shares at any point at a conversion rate of 1.3 Swedish krona (11 US cents) per share.

In the event that H100’s share price maintains a volume-weighted average exceeding 33% above the conversion price for a cumulative total of 60 trading days, the company retains the right to mandate a conversion of the loan into equity.

A full conversion would result in the issuance of approximately 16,153,900 new shares, translating to a dilution of roughly 12%.

Market response to H100’s Bitcoin purchases

Following H100's announcement of its pivot towards Bitcoin buying, the company's shares experienced a surge of 37% on May 22 and continued to rise by an additional 5.33% the following day, reaching 1.29 SEK (14 US cents), according to data from Bloomberg.

H100 specializes in providing health tools for individuals seeking alternatives to the traditional reactive healthcare system. The CEO of the company, Sander Andersen, highlighted the alignment of values between the Bitcoin community and the target customers of H100, emphasizing the appeal of individual sovereignty in the Bitcoin realm.

H100’s adoption of a Bitcoin treasury policy positions it as one of the first public companies in Sweden to embrace this approach and among the pioneers in Europe. The trend of companies diversifying into Bitcoin as a treasury asset is on the rise, with 112 public firms currently holding the cryptocurrency, as per data from BitcoinTreasuries.NET.

Among these firms, ten are based in Europe, showcasing H100 as an early adopter of this strategic shift in the region.

Conclusion

The recent funding round led by Adam Back, coupled with H100 Group AB's decision to venture into Bitcoin acquisitions, marks an important milestone for the Swedish health tech company. As the crypto space continues to evolve, the convergence of healthcare and digital assets opens up new avenues for innovation and growth.

With the support of industry leaders like Back and the growing acceptance of Bitcoin as a treasury asset, companies like H100 are well-positioned to navigate the dynamic landscape of finance and technology, paving the way for a new era of financial inclusion and decentralization.