French Tech Firm Acquires $69 Million Worth of Bitcoin
In a significant move, the Blockchain Group, known as Europe’s first Bitcoin Treasury Company, has recently completed the acquisition of 624 Bitcoin for approximately €60.2 million ($69 million). This acquisition was made possible through a capital raise and bond issuance, showcasing the company’s commitment to expanding its Bitcoin holdings.
The acquisition process involved purchasing the Bitcoin in two tranches: 80 BTC for €7.7 million through a capital increase and 544 BTC for €52.5 million via convertible bonds subscribed by Fulgur Ventures. This strategic move has increased the company’s total Bitcoin holdings to 1,471 BTC, demonstrating a proactive approach to diversifying its asset portfolio.
With an average purchase price of €89,687 ($103,000) per coin, the Blockchain Group has achieved an impressive “BTC Yield” of 1,097.6% year-to-date. This yield metric showcases the positive performance of Bitcoin as an investment asset and the company’s ability to capitalize on this growth.
To facilitate the purchase, the Blockchain Group collaborated with Banque Delubac & Cie and Swissquote Bank Europe SA, with custody services provided by Taurus. The company also plans to acquire an additional 60 BTC through ongoing convertible bond issuances, indicating a continued focus on expanding its Bitcoin holdings.
The funding for this acquisition was sourced through a €8.6 million capital increase, with contributions from investors such as TOBAM Bitcoin Treasury Opportunities Fund and Quadrille Capital. Additionally, a €55.3 million convertible bond issuance to Fulgur Ventures played a key role in financing the acquisition.
With a reported BTC Gain of 439 BTC year-to-date and a BTC € Gain of approximately €42.3 million, the Blockchain Group’s strategic move highlights the growing trend of European corporations integrating Bitcoin into their treasury assets. This trend underscores the increasing importance of cryptocurrencies in the global financial landscape.
As Bitcoin continues to gain traction and acceptance from institutional investors, its value has surged to €92,349 ($105,260) at the time of reporting. This upward trend in Bitcoin’s value reflects the ongoing shift towards digital assets in corporate treasury management practices.
Overall, the Blockchain Group’s acquisition of $69 million worth of Bitcoin signifies a significant milestone in the company’s journey towards embracing cryptocurrencies as a strategic investment. This move not only showcases their confidence in Bitcoin’s potential as a store of value but also sets a positive precedent for other corporations looking to diversify their asset portfolios.
Follow CryptoTrend for more daily crypto insights!