The Paris-based Blockchain Group is set to expand its Bitcoin stash following a successful bond issuance that raised 63.3 million euros (around $72 million). Announced on May 26, the company plans to deploy most of these funds to purchase an additional 590 Bitcoin, bringing its total holdings to approximately 1,437 BTC. Given Bitcoin’s current price hovering above $109,000, the company could theoretically acquire up to 658 BTC with the full amount raised, but it clarified that about 5% of the proceeds will be reserved for operational costs and management fees.
The recent bond sale saw significant backing from venture capital firm Fulgur Ventures, which invested 55.3 million euros ($62.9 million), while crypto-focused private investment fund Moonlight Capital contributed 5 million euros ($5.7 million). These bonds are convertible into shares of the Blockchain Group at a price of 3.809 euros ($4.34) per share. This financial maneuver aligns with the company’s mission to steadily increase the number of Bitcoin it holds per share, leveraging excess cash and innovative financing methods to grow its treasury.
Since the Blockchain Group first announced its Bitcoin buying strategy in early November, its stock price has surged dramatically. From a starting point of 0.48 euros ($0.52), shares climbed over 225% that month alone, with the year-to-date gains now exceeding 765%. Despite a minor dip of around 5.5% on May 26, closing at 2.77 euros ($3.16), the company’s market performance remains robust and reflective of strong investor confidence in its Bitcoin acquisition plan.
In its recent 2024 financial results released on April 30, the Blockchain Group revealed a striking yield of over 709% from its Bitcoin holdings, underscoring the profitability of its crypto investment strategy. However, the company’s total consolidated revenue dropped 32.1% compared to the previous fiscal year, falling to 13.86 million euros ($15.8 million) from 20.4 million euros ($23.2 million). Despite this revenue contraction, Blockchain Group’s long-term vision remains bullish, aiming to hold at least 1% of the total Bitcoin supply by 2032 — a goal that would significantly elevate its status in the crypto investment world.
This move by Blockchain Group is part of a growing trend among publicly traded firms embracing Bitcoin as a strategic asset. More companies are opting to take what’s colloquially known as the “orange pill,” a reference to choosing Bitcoin exposure for long-term financial positioning. Swedish health tech company H100 Group AB recently announced a pivot toward Bitcoin acquisition, joining this emerging wave. Additionally, Strive Asset Management declared its transformation into a Bitcoin treasury company earlier this month, highlighting the expanding institutional interest in holding digital assets.
Experts suggest that despite Bitcoin’s notorious volatility, corporate adoption brings tangible benefits. Holding Bitcoin may serve as an inflation hedge, provide opportunities for long-term price appreciation, and offer diversification benefits given its historically low correlation with traditional equity markets. As more companies like the Blockchain Group strategically build Bitcoin treasuries, this trend could further normalize digital assets in mainstream finance and enhance their role as a long-term store of value.
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