The Blockchain Group Expands Bitcoin Holdings with New Purchase

Major Purchase Boosts Bitcoin Portfolio

The Blockchain Group (ALTBG), a technology firm listed in Paris and recognized as Europe’s inaugural bitcoin treasury company, recently announced a strategic acquisition of 182 BTC for approximately 17 million euros (around $19.6 million). This latest addition elevates the firm’s total bitcoin reserves to 1,653 BTC, with a market value nearing 149 million euros.

Financing and Financial Strategies

This bitcoin procurement follows a series of convertible bond issuances that collectively raised over 18 million euros. The subscriptions were supported by several investors including UTXO Management, Moonlight Capital, Ludovic Chechin-Laurans, and TOBAM, a well-known asset manager. In addition, the company converted share warrants into nearly 3 million ordinary shares, generating an additional 1.6 million euros intended for further bitcoin acquisitions.

Impressive BTC Yield Achievements

The Blockchain Group reported an astonishing 1,173% yield on its BTC holdings so far this year. This yield is measured by comparing the total bitcoin held against the fully diluted shares outstanding. Various companies utilize this metric to assess the effectiveness of their bitcoin investment strategies, although the methods of calculation can differ.

Comparison with Other Major Players

Notably, The Blockchain Group’s yield figure significantly outshines those of other corporate bitcoin holders. For instance, Strategy (MSTR), reported the highest yield among companies, standing at 19.1% year-to-date, while Metaplanet reached 266.07%, and Semler Scientific recorded a yield of 26.7%.

Purchase and Custodial Information

The recent bitcoin transactions were facilitated through Swissquote Bank Europe and Banque Delubac, with custody managed by Taurus, a provider specializing in digital asset infrastructure based in Switzerland. Following this acquisition, the average cost per bitcoin for The Blockchain Group is approximately 90,000 euros.

Market Reaction

In the wake of this announcement, shares of The Blockchain Group experienced a decline of 2.1%, settling at 4.895 euros during early trading on Euronext Paris. Conversely, the CAC 40 Index showed minimal significant movement during this period.

This strategic move emphasizes The Blockchain Group’s commitment to expanding its digital assets portfolio as it navigates the evolving landscape of cryptocurrency investment.