The Blockchain Group Raises €63.3M to Expand Bitcoin Reserves Through Convertible Bonds

The Blockchain Group plans to buy 590 more Bitcoin using funds from a €63.3 million bond issuance.

95% of the raised funds will be used to increase Bitcoin holdings by the French tech firm.

The company aims to reach 1% of total Bitcoin supply by 2032 through steady accumulation.

The Blockchain Group has completed a €63.3 million convertible bond issuance to boost its Bitcoin treasury. The company, listed in Paris, used its Luxembourg-based subsidiary to carry out the operation.

The funds will allow the firm to acquire about 590 Bitcoin at current market prices. This would increase its potential total to around 1,437 BTC. The company already holds 847 BTC, according to data from Bitcoin treasuries.

Breakdown of Fund Allocation

95% of the raised capital will go toward buying Bitcoin. The remaining five percent will cover management fees and operational expenses. The bonds are denominated in Bitcoin and can be converted into company shares. Strike prices vary depending on the tranche and investor.

Fulgur Ventures subscribed to the largest portion, contributing €55.3 million to Tranche 2 bonds. UTXO Management followed with €3 million, while Moonlight Capital invested €5 million through a separate tranche priced at €3.809 per share.

Company Strategy and Market Performance

The Blockchain Group began accumulating Bitcoin in November 2024. It reported a 709% yield on its Bitcoin assets in 2024 financial results. The firm aims to acquire 1% of all Bitcoin in circulation by 2032, equaling around 170,000 BTC. It also plans to increase the number of Bitcoins held per fully diluted share over time.

The company focuses on blockchain, data intelligence, and artificial intelligence. Since it started buying Bitcoin, its stock price has surged over 1,350%. On May 26, shares were priced at €2.77, reflecting a 766% gain since the start of the year. However, the stock dropped 5.5% on the same day.

Growing Corporate Interest in Bitcoin

The Blockchain Group joins several companies expanding their Bitcoin holdings. Last week, DDC Enterprise from Hong Kong bought 21 BTC. The company plans to eventually hold 5,000 BTC. Swedish health tech firm H100 Group also entered the space with $2.2 million in convertible loans.

Strategy, Metaplanet, and Strive Asset Management continue increasing their exposure to Bitcoin. Strategy leads all corporate holders with 580,250 BTC, worth around $63 billion.

Bitcoin Near Record High

Bitcoin is trading around $109,666 today, following a new all time high last week. The Blockchain Group confirmed it will continue its accumulation strategy while growing its subsidiary operations.