By [Your Name/Associated Name], Paris/Geneva
Paris Tech Firm Bolsters Bitcoin Reserves
Paris-listed technology company The Blockchain Group (ALTBG) has increased its Bitcoin treasury by purchasing 182 BTC for approximately $19.6 million, according to an announcement made Wednesday.
Reaches Significant Holding
The transaction brings the company’s total Bitcoin reserves to 1,653 BTC. Based on current market prices, this substantial holding is valued at over $170 million.
Funding Through Convertible Bonds
The acquisition was financed via a series of recently concluded convertible bond deals totaling nearly €18 million ($20.7 million). Key institutional investors participating in this funding round included UTXO Management, Moonlight Capital, TOBAM, and Ludovic Chechin-Laurans.
The bond placements were executed through commercial banking institution Banque Delubac & Cie and digital investment bank Swissquote Bank Europe SA, with custody services provided by Swiss digital asset infrastructure provider Taurus.
Impressive Bitcoin Yield
The Blockchain Group claims a year-to-date Bitcoin (BTC) yield of 1,173.2%, reflecting an increase in the ratio of Bitcoin held to its fully diluted share count.
Furthermore, the company reported adding 469 BTC since the start of the year, generating over $49.4 million in Bitcoin value gains.
The firm’s average acquisition cost for BTC is approximately $10,300 at the time of the latest purchase, significantly below the current benchmark price. Management indicated possibilities for acquiring an additional 70 BTC, potentially pushing reserves towards 1,723 BTC.
The Blockchain Group’s shares have experienced a slight decline, falling 3.9% according to Google Finance data available as of Wednesday’s announcement.
Broadening Treasury Strategies
In an effort to further expand its Bitcoin treasury, the company recently announced plans to raise up to €300 million ($342 million) via a deemed effective “At the Market” (ATM) offering.
The fundraising strategy involves selling shares at market-driven prices, referencing the previous day’s closing value or the volume-weighted average price, with position limits capping sales at 21% of the daily trading volume.
Market Trend Meets Caution
The trend of listed firms allocating capital to Bitcoin treasuries continues, with BitcoinTreasuries.NET identifying at least 26 entities having added BTC to their balance sheets in the past 30 days.
While adoption grows, concerns persist. Fakhul Miah of GoMining Institutional observes that smaller entities replicating similar strategies might lack adequate risk management. Furthermore, Standard Chartered Bank warned recently that if Bitcoin were to fall below the $90,000 mark—a likely scenario for several of these firms—widespread liquidations and reputational damage could result.
