K33 AB (publ) (“K33”) announces that Sixty Six Capital Inc. (“Sixty Six”), in which K33 owns approximately 46%, has entered into a 12-month call option agreement with K33 Holding AS for up to 200 BTC at a strike price of US$100,000 per BTC.
K33 Holding AS has fully hedged its Bitcoin price exposure under the option. K33 therefore retains its full pro rata economic participation in Sixty Six’s additional BTC upside through its ownership stake.
Based on K33’s approximately 46% ownership, the option adds up to approximately 92 BTC of effective look-through exposure.
“This is a clear example of the synergies we expected from our investment in Sixty Six,” said Torbjørn Bull Jenssen, CEO of K33 and Sixty Six Capital. “Sixty Six materially increases its Bitcoin upside and prepares to move its existing holdings on-chain. Because K33 Holding has fully hedged the option, K33 participates pro rata in that increased exposure through our ownership stake. The result is higher effective BTC exposure for both companies.”
Sixty Six has also sold its Purpose Bitcoin ETF holdings, repaid CAD 2,963,974.4 of financing, and will use the remaining net proceeds to pay for the option and acquire BTC directly. This will transition Sixty Six’s existing exposure from ETF units to direct, on-chain holdings and deepen the operational collaboration between the companies.
Sixty Six expects to continue using K33 Markets AS for execution, custody and treasury administration relating to its direct holdings. Sixty Six initiated that client relationship and completed onboarding before K33 acquired its ownership interest.
The option may be exercised once for between 100 and 200 BTC until 21 August 2027 and will settle through physical, on-chain delivery. K33 Holding AS will receive a non-refundable premium of 1,932,000 USD to cover hedge costs and facilitation fee. K33’s net financial result from the option will reflect the premium received and the cost and performance of the hedge.
In this release, “effective look-through exposure” is an analytical measure calculated by applying K33’s ownership percentage to Sixty Six’s effective BTC exposure. It does not represent BTC directly owned by K33.