The Blockchain Group, a French blockchain firm listed on Euronext (ALTBG.PA), has successfully raised approximately €7.2 million ($7.7 million USD) through an At-The-Market (ATM) capital increase program to fund its ambitious plan to adopt a dedicated Bitcoin (BTC) treasury strategy.
This capital raise, achieved in partnership with asset manager TOBAM, involved issuing 1.6 million new shares at an average price of €4.49 per share, representing a discount due to market volatility. TOBAM subscribed to all new shares across three of its funds, now holding 3.3% of The Blockchain Group's capital on a fully diluted basis.
The company aims to become Europe’s leading Bitcoin treasury entity by steadily increasing the amount of Bitcoin it holds per share, with a long-term plan to accumulate up to 260,000 BTC, roughly $24 billion at current prices, by 2033. This strategy aligns with broader institutional trends where companies like MicroStrategy have incorporated significant Bitcoin holdings into their corporate treasuries as a hedge against inflation, a diversification tactic, and a way to signal technological innovation and forward-thinking financial management.
Adopting a Bitcoin treasury strategy means holding Bitcoin as a primary reserve asset alongside or instead of traditional cash or investments. While offering potential benefits like upside appreciation and inflation protection, this approach also carries risks, including Bitcoin's price volatility, regulatory uncertainties, security concerns, and complexities in accounting and taxation.
Investor support is robust, as evidenced by the recent shareholder vote increasing the company's fundraising capacity to €500 million nominal value with over 95% approval. The Blockchain Group's move reflects a growing acceptance and integration of digital assets in corporate finance, contributing to Bitcoin's evolving role beyond speculative trading into institutional asset management.
Overall, The Blockchain Group’s strategic pivot, backed by significant capital and institutional partnership, represents a key development in the increasing adoption of Bitcoin by publicly traded companies, reinforcing Bitcoin’s position in the future digital economy.