France’s Blockchain Group Acquires 590 Bitcoin Following Bond Sale
The crypto firm Blockchain Group, based in Paris, is expanding its Bitcoin treasury by launching a bond sale worth 63.3 million euros ($72 million).
The company aims to use the funds to acquire an additional 590 Bitcoin (BTC), boosting its total holdings to 1,437 BTC, as reported on May 26.
With Bitcoin trading at over $109,000, the Blockchain Group could potentially purchase 658 BTC based on the total funds raised, as per CoinGecko.
However, the company clarified that only 95% of the proceeds from the bond issuance will be allocated for Bitcoin purchases; the remaining amount will cover “operational expenses and management fees.”
Source: Alexandre Laizet
Fulgur Ventures, a venture capital firm, contributed the majority of the bond sale with an investment of 55.3 million euros ($62.9 million), while crypto private investment fund Moonlight Capital added 5 million euros ($5.7 million). The bonds can be converted into shares of the Blockchain Group at a price of 3.809 euros ($4.34).
The Blockchain Group (ALTBG) is traded on Euronext Paris, noted as Europe’s second-largest stock exchange by market capitalization. According to its website, the company aims to “increase the number of Bitcoin per share over time by leveraging excess cash and suitable financing instruments.”
On May 26, ALTBG shares closed nearly 5.5% lower at 2.77 euros ($3.16), even though they have surged approximately 766% this year, according to Google Finance. Following the company’s Bitcoin acquisition announcement on November 5, the stock price soared by 225% to 0.48 euros ($0.52).
In its financial results for the 2024 fiscal year, released on April 30, the Blockchain Group reported a yield of over 709% from its Bitcoin investments.
However, its total consolidated revenue for the year was 13,864,000 euros ($15.8 million), in contrast to 20,408,000 euros ($23.2 million) from the previous fiscal year, marking a decrease of 32.1%.
The company indicated that its long-term objective is to acquire 1% of the total Bitcoin supply over the next eight years, aiming for over 170 BTC by 2032.
More Companies Embrace the “Orange Pill”
An increasing number of public companies are investing in Bitcoin for long-term holding in hopes of realizing significant gains from this asset.
Related: Metaplanet is raising another $21M through bonds to buy more Bitcoin.
Recently, Swedish health tech firm H100 Group AB announced its pivot to Bitcoin investments on May 22.
Strive Asset Management also revealed on May 7 that it will transition to becoming a Bitcoin treasury company.
Experts suggest that there are concrete long-term advantages for companies that hold Bitcoin, despite its volatility, such as acting as a hedge against inflation, benefiting from long-term price appreciation, and theoretically exhibiting lower correlation to stock markets over time.
Magazine: Rise of MicroStrategy clones, Asia dominates crypto adoption: Asia Express 2024 review.
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