The share price of Blockchain Group, headquartered in Paris, has soared by 1,400% in the past six months. The company recently reached a remarkable agreement with the French asset management company To Bam, planning to raise up to 300 million euros (approximately 342 million US dollars) through an “ATM-style” equity program to enrich its Bitcoin reserves.
On June 3rd, the group purchased 624 Bitcoins (approximately 69 million US dollars), bringing its Bitcoin holdings to 1,471, which is worth about 151 million US dollars at the current price. The new funds raised through To Bam this time will be directly used for similar Bitcoin acquisitions, making the blockchain group the most active Bitcoin enterprise accumulator in Europe.
To Bam has a long business history related to digital assets. In 2017, the company launched Europe’s first Bitcoin fund and has always advocated the concept of Bitcoin as a non-linked reserve asset. For the blockchain group, the significant increase in its share price is attributed to a series of capital operations related to cryptocurrencies, including the issuance of 12.1 million euros worth of Bitcoin-denominated convertible bonds to Adam Baker, the CEO of Blockstream, from the end of 2024 to the beginning of 2025, as well as multiple equity financings.
Although Bitcoin reached a record high of $111,965 in April and is currently consolidating around $105,000 in the short term, listed companies still continue to use Bitcoin as the cornerstone of their balance sheets. According to data from the Financial Times of the UK, since April alone, the number of companies holding Bitcoin has climbed from 89 to 113.
However, this move by the blockchain group has also raised some problems. The issuance of stocks may expand the share capital and bring about the problem of equity dilution. Whether the growth of each share of Bitcoin can exceed the speed of stock issuance will depend on the execution situation and the price of Bitcoin. Besides, transparency is also of vital importance. The blockchain group has committed to disclosing weekly Bitcoin purchases and limiting the pace of stock issuance, but any deviation could trigger a review by the French Financial Markets Authority (AMF) or a backlash from shareholders.
The model being carried out by the blockchain group may serve as a template for medium-sized European enterprises to enter the Bitcoin reserve field without the tools of the US capital market. If successful, it may welcome a new type of “Bitcoin balance sheet” participants on the European continent.
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