The Blockchain Group, known as Europe’s first Bitcoin treasury company, has announced a capital increase totaling €7.2 million ($8.3 million) in order to expand its Bitcoin purchases.
The Blockchain Group Raises $8.3 Million to Increase Bitcoin Reserves
The Blockchain Group, which is listed on the Paris-based Euronext Growth exchange, will issue approximately 1.6 million new shares at an average price of 4.49 euros ($5.19), the company announced today.
The transaction is part of a €300 million ($342 million) at-the-market (ATM) Bitcoin purchasing program that the company launched last week.
The company announced plans to increase its Bitcoin treasury last Friday by issuing shares and convertible bonds worth 9.7 million euros ($11.2 million).
Currently holding 1,471 BTC, The Blockchain Group is solidifying its place among the companies accumulating Bitcoin at the institutional level. TOMAB, the company’s strategic partner, also supports this move as a shareholder.
However, with the news of the capital increase, the company’s shares lost more than 4% of their value during the day, falling to 5.53 euros, according to Euronext data.
This aggressive Bitcoin strategy by The Blockchain Group follows the path taken by giants in the institutional investment world, such as MicroStrategy, led by Michael Saylor.
With the 10,100 BTC purchase announced earlier this week alone, MicroStrategy has brought its total Bitcoin holdings to 592,100 BTC and is now the largest publicly traded Bitcoin holder.
*This is not investment advice.
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