Amdax, based in Amsterdam, is making strides with its new venture, AMBTS, a specialized Bitcoin treasury company. With a backing of $23 million, its objective is to create an EUR-based alternative to global leaders and to acquire 1% of the total BTC supply for European markets.
Summary
- Amdax has introduced AMBTS, a Bitcoin treasury firm with initial funding of $23 million, aiming to capture 1% of BTC’s overall supply.
- This new venture intends to secure €30 million by 2025 and plans a future listing on Euronext Amsterdam, providing Europe with an equity-focused Bitcoin option.
On August 29, Amdax CEO Lucas Wensing revealed that a selection of investors had pledged €20 million (approximately $23.3 million) to initiate AMBTS B.V., an independent Bitcoin (BTC) treasury firm intended to continuously accumulate the original cryptocurrency.
This new entity, spinning off from the regulated Dutch crypto asset service provider, has already achieved its minimum funding target and aims for a total of €30 million by September 2025. The funds will support an initial purchasing phase prior to a planned public listing on Euronext Amsterdam, aiming to create a unique, equity-driven Bitcoin vehicle for the European market.
A late arrival to a crowded field?
As mentioned in the press release, AMBTS’s long-term ambition is to acquire at least 210,000 bitcoin, effectively controlling one percent of the total predetermined supply. This would position the emerging entity among the largest corporate Bitcoin holders, an ambitious move underscoring a strong belief in Bitcoin as a non-sovereign store of value.
The transition from a service provider to a principal accumulator represents a strategic shift for Amdax, capitalizing on its regulatory framework and operational knowledge to implement a capital-intensive strategy it has previously facilitated for others. Notably, AMBTS looks to enhance the region’s role in the global digital asset arena.
“The enthusiasm we have encountered for this initial financing round suggests that investors are supportive of the initiative, allowing them an opportunity to engage in the rapidly evolving market. With the launch of AMBTS, we intend to bolster the European autonomous digital asset sector and potentially unlock a significant investment opportunity for institutional investors,” stated Amdax CEO Lucas Wensing.
A crowded field with lingering risks
Nevertheless, AMBTS is entering a sector that is already saturated and highly competitive. Data from BitcoinTreasuries.net indicates that roughly 178 publicly traded companies have incorporated Bitcoin into their treasury reserves, collectively holding nearly 990,000 BTC.
This market is largely led by Michael Saylor’s strategy, which possesses an immense 632,457 BTC, effectively setting the benchmark for corporate treasury strategies. Other notable competitors include Bitcoin Standard Treasury Company and Japan’s Metaplanet, which has recently approved a fundraising initiative nearing a billion dollars specifically for additional BTC acquisition.
Such strategies are not devoid of significant risks. Analysts from Standard Chartered have cautioned that a continuous decline in Bitcoin’s price below $90,000 could leave half of all corporate Bitcoin treasuries in a precarious position.
This situation could lead to critical liquidity issues for companies that over-leveraged themselves to purchase at high prices. The inherent volatility of the asset class remains a fundamental risk, contrasting sharply with the stability seen in traditional treasury holdings.
