H100 Group lost US$10.3 million in the quarter, as Bitcoin dragged down earnings

Swedish listed company H100 Group reported a pre-tax loss of 98 million Swedish kronor (approximately US$10.3 million) in the second quarter, mainly due to the decline in bitcoin prices, which dragged down the value of its treasury assets.

Summary

H100 Group had a pre-tax loss of 98 million Swedish kronor (approximately US$10.3 million) in the second quarter. The company said almost all of the losses were due to non-cash impairments related to falling bitcoin prices. H100's first-half pre-tax loss reached SEK 253 million, while operating income rose to SEK 6.1 million. After acquiring two Norway Bitcoin treasury companies, the company currently holds 3506 bitcoins. H100 is Europe's second-largest listed Bitcoin treasury company by position.

H100 Group said in an interim report released on Wednesday that pre-tax losses for the first six months of 2026 reached SEK 253 million, while operating income remained small compared with losses for the same period. The medical-technology and bitcoin treasury company's operating income in the second quarter was SEK 3 million, unchanged from the same period in 2025. Operating income in the first half of the year increased to SEK 6.1 million from SEK 5.8 million in the same period last year.

In a social media post on Wednesday, H100 attributed almost all of its second-quarter loss to non-cash impairments triggered by the decline in Bitcoin prices during the reporting period. This accounting treatment reduced reported profit but did not correspond to an equal cash outflow.

Bitcoin struggled in the second quarter, putting pressure on companies that hold large amounts of the cryptocurrency on their balance sheets as falling market prices affected the value of their treasury assets.

Bitcoin impairment led to H100 Group's second-quarter loss

For H100, the impact has become more significant as Bitcoin's share of its balance sheet has increased significantly over the past year. When the company launched its treasury strategy in May 2025, it only held 4.39 bitcoins. Its share price soared nearly 40% after the first purchase, when the deal was worth about $490,000.

In the following months, H100 continued to raise funds to make more purchases. As of July 2025, the company has raised more than US$54 million through equity and convertible bond offerings, including approximately SEK 173 million in private placement and SEK 342.3 million in convertible bond issuance.

Adam Back, CEO of Blockstream, is one of the investors supporting the strategy. The previous financing included a 150 million Swedish kroner convertible loan guarantee provided by Back and a 21 million Swedish kroner zero-coupon convertible loan involving Back and other investors.

These financing rounds helped H100 increase its Bitcoin holdings from single digits to hundreds during 2025. According to previous reports, by the end of August of the same year, after purchasing 46 more bitcoins, its treasury position had reached 957.

The company then increased its position to 1051 bitcoins, and then turned to acquisitions as another way to expand its treasury.

H100 expands Bitcoin position through acquisition

The bulk of this expansion comes from Norway. H100 disclosed in March that it planned to acquire Norway Bitcoin through an all-stock transaction, a move that could bring its position to approximately 3500 bitcoins. At the time, the company held 1051 bitcoins, while the acquisition targets jointly controlled approximately 2450 bitcoins.

Under the proposed structure, H100 will issue shares to sellers instead of paying cash, thereby transferring acquired Bitcoin positions to the Swedish listed company. The Norway acquisition plan initially involved Moonshot AS and Never Say Die AS and was subject to due diligence, company approval and stock exchange requirements. H100 completed the transaction in August and acquired Norway companies and their cryptocurrency positions.

completed transactions added approximately 2455 bitcoins, bringing the total position of H100 to 3506. The company funded the deal by issuing approximately 790.5 million new shares (SEK 1.86 per share) rather than using cash. H100 said this structure keeps the number of Satoons per basic share unchanged, while increasing the number of Satoons per fully diluted share by approximately 5%. The deal also significantly increased the company's total number of outstanding shares.

Prior to the Norway deal, H100 completed its acquisition of Future Holdings AG in Switzerland in February, establishing an operating base in Switzerland as part of its treasury business.

H100 becomes Europe's second largest Bitcoin treasury company

After trading in Norway, H100 holds 3506 bitcoins, making it the second-largest listed bitcoin treasury company in Europe, according to data. Based on a value of approximately US$226 million, its position is slightly lower than that of Germany's Bitcoin Group (approximately 3605 bitcoins).

This ranking is a huge change from where H100 was when it started buying Bitcoin in 2025. When it held 370 bitcoins in July of that year, the company ranked 49th among global listed bitcoin treasury companies.

The expansion of H100 also comes as other treasury companies are facing pressure from weak cryptocurrency prices. A report in June found that as Bitcoin, Ethereum and Solana prices fell, a number of listed digital asset treasury companies held large unrealized losses, and the treasury industry was under pressure from falling asset valuations.

Bitcoin treasury companies are particularly vulnerable to such fluctuations because changes in cryptocurrency prices can directly affect the market value of assets held on their balance sheet. The accounting treatment and the resulting profit impact depend on the reporting rules adopted by each company.

For H100, Wednesday's data showed how this exposure affects reported profits, even as the company continues to build its Bitcoin holdings through corporate transactions.

H100 said on social media: "Second quarter 2026 results have been announced. Reported a pre-tax loss of-98.2 million Swedish kronor. Almost all of them were non-cash losses, mainly due to bitcoin impairment. The actual business consumption for the quarter was SEK 5.1 million, compared with SEK 12.7 million in the first half of the year. As of the end of June, we held SEK 18.1 million in cash."

H100's share price will remain declining in 2026

H100's financial expansion has not prevented its listed stocks from continuing to be under pressure this year. According to data, the company's share price fell 4.2% on Tuesday and has fallen about 24% since the beginning of 2026.

This performance contrasts with the market reaction when H100 first purchased Bitcoin in May 2025, when its share price soared nearly 40% after the company announced it had purchased 4.39 bitcoins.

H100 then used equity and convertible debt to fund more Bitcoin purchases, before turning to equity-funded acquisitions. In July 2025, a private placement raised approximately SEK 14.1 million from qualified investors at SEK 9.30 per share, while a larger round of financing earlier that month brought approximately SEK 516 million to the company through stocks and convertible bonds.

By March 2026, when H100 announced the Norway transaction, management chose an all-stock structure that did not require the payment of cash consideration for acquired Bitcoin positions. The transaction was completed in August, and H100 issued approximately 790.5 million shares to acquire Norway companies and approximately 2455 bitcoins, bringing the company's total position to 3506.