The Blockchain Group to Raise €300M for More Bitcoin in Line with Strategy’s Model
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The Blockchain Group, a Paris-based company, is joining the growing list of public companies following software firm Strategy’s approach of investing heavily in Bitcoin. The company has announced plans to raise €300 million (about $342 million) to expand its Bitcoin holdings.
This comes after it recently purchased $68 million worth of Bitcoin. The new funds will be raised with French asset manager TOBAM through a share-selling method called an “at-the-market” offering. With Bitcoin prices surging by 55% over the past year and trading around $110,000, more public firms are adding Bitcoin to their balance sheets.
How The Blockchain Group Plans to Raise Funds
The Blockchain Group’s plan to raise money involves issuing new shares directly to TOBAM daily. These shares will be priced based on the higher of the previous day’s closing price or the volume-weighted average price. However, there is a limit of 21% of that day’s trading volume. This approach gives the company flexibility in selling shares without flooding the market.
The total amount that can be raised is capped at €300 million over six months. The company’s board has the power to extend this timeframe or increase the limit if needed. As part of the agreement, The Blockchain Group will provide regular updates on the number of shares sold and how much Bitcoin it holds. It will also share information on how much Bitcoin is held per share on a fully diluted basis.
Why More Companies Are Following This Strategy
The Blockchain Group’s move mirrors a growing trend among public and private firms building Bitcoin treasuries, even if they are not crypto companies. This strategy has gained popularity due to the strong rise in Bitcoin prices. More than 60 public companies now hold Bitcoin worth over $82 billion combined. Recently, companies like Treasure Global and Davis Commodities have also announced similar Bitcoin plans.
The rising interest shows how Bitcoin is becoming a serious part of corporate investment strategies. The Blockchain Group’s stock rose 17% in one day, trading at €4.80 ($5.48), showing investor confidence in its Bitcoin-focused direction.
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