Belgravia repays $1.5-million (U.S.) line of credit

Executive Summary

• Belgravia Hartford Capital Inc. has fully repaid a $1.5 million USD line of credit owed to Round13 Digital Asset Fund LP by returning 14.21448 Bitcoin held under the agreement, thereby eliminating debt exposure and strengthening its balance sheet.
• The company updated its Bitcoin treasury holdings, stating it now holds a total of 68.72854407 Bitcoin, with 26.350911 Bitcoin being unencumbered and 100% owned by the company.
• Belgravia confirmed that a $5 million USD convertible debenture remains outstanding for the purchase of 42.3776327 Bitcoin, with specific acceleration provisions triggered if common shares trade at or above 17 cents for 10 consecutive days.

Key Details

• Debt Repayment: Belgravia repaid $1.5 million USD to Round13 Digital Asset Fund LP.
• Repayment Method: The debt was offset by returning 14.21448 Bitcoin held under the loan agreement.
• Interest Terms: Interest is calculated at the Bank of Canada prime rate as of June 4, 2025; further updates on interest payments are pending.
• Total Bitcoin Holdings: Post-repayment, Belgravia holds 68.72854407 Bitcoin in total.
• Unencumbered Holdings: 26.350911 Bitcoin are unencumbered and wholly owned by Belgravia.
• Outstanding Debenture: A $5 million USD convertible debenture remains in place, used to purchase 42.3776327 Bitcoin.
• Acceleration Provision: Under amended terms, if common shares trade at or above 17 cents for 10 consecutive trading days, Belgravia may trigger acceleration within seven days.
• Conversion Terms: Upon acceleration, Round13 has 30 days to convert the debenture into common shares at 12.5 cents per share. Unconverted portions revert to a 71-cent conversion price for the remainder of the term.
• Strategic Context: CEO Mehdi Azodi stated the move eliminates overhang and risk, allowing the company to fully own Bitcoin moving forward and aligning with an amended debenture structure and a recently announced LOI with DelphX.

Notable Quotes

• "Retiring the line of credit removes a meaningful overhang and represents another step in executing our bitcoin treasury strategy," said Mehdi Azodi, chief executive officer of Belgravia. "We believe the amended debenture structure and any potential future equity and convertible debenture financings are better suited for Belgravia. This enables us the opportunity to fully wholly own the bitcoin moving forward and eliminate any additional risks with the loan exposure and costs."