Overview of the Capital Raise
The Blockchain Group, a prominent Bitcoin Treasury Company listed on Euronext Growth Paris, has announced a significant capital raise of approximately €11 million. This strategic move is designed to further the company's mission of increasing its Bitcoin holdings per share on a fully diluted basis over time.
The financing is structured through two primary mechanisms: a capital increase and the issuance of convertible bonds. This approach allows the company to secure funding while offering future equity conversion opportunities to investors.
Details of the Capital Increase
The company executed a capital increase under its existing "At-The-Market" (ATM) equity program with TOBAM. This resulted in the issuance of 200,300 new ordinary shares at an average price of approximately €5.251 per share, generating total proceeds of around €1 million.
The shares were allocated to several funds managed by TOBAM, a notable investment firm, and MDP Blockchain. The new shares will be admitted for trading on Euronext Growth Paris.
Convertible Bond Issuance
The core of this financing round is the issuance of convertible bonds through The Blockchain Group's wholly-owned Luxembourg subsidiary, The Blockchain Group Luxembourg SA.
The issuance is split into two distinct series:
- Series A-04 Tranche 1: A €5 million offering subscribed to by TOBAM.
- Series B-04 Tranche 1: An approximate €5 million offering subscribed to by Adam Back, a renowned figure in the cryptocurrency space. Notably, this subscription was made in Bitcoin (BTC), equivalent to 55 BTC based on valuation assumptions at the time.
Both series of bonds were issued at a conversion price of €5.174 per share, representing a 30% premium over the closing share price on June 27, 2025. The bonds have a five-year maturity and carry a 0% coupon.
Use of Proceeds and Strategic Focus
A definitive 95% of the proceeds from these bond issuances will be allocated to acquiring and holding Bitcoin. The remaining 5% will be used by the Luxembourg subsidiary to cover operational expenses and management fees paid to The Blockchain Group SA for services rendered.
This clear allocation underscores the company's commitment to its Bitcoin Treasury strategy, aiming to build a substantial long-term Bitcoin reserve for the benefit of its shareholders. 👉 Explore more strategies for digital asset investment
Potential Impact and Future Dilution
The successful conversion of all issued bonds, along with the capital increase, could facilitate the acquisition of approximately 90 additional Bitcoin. This would potentially bring the company's total holdings to 1,878 BTC.
The company has provided detailed tables showing the theoretical impact on earnings per share and shareholder dilution. On a fully diluted basis, the equity per share is projected to increase, reflecting the value-accretive nature of this financing aimed at growing the Bitcoin treasury.
About The Blockchain Group
The Blockchain Group is Europe's first listed Bitcoin Treasury Company. Its business model focuses on increasing the amount of Bitcoin per share over time. Alongside this strategy, it operates subsidiaries that provide consulting and development services in Data Intelligence, Artificial Intelligence (AI), and decentralized technologies.
Its shares are traded on Euronext Growth Paris under the ticker symbol ALTBG.
Frequently Asked Questions
What is a Bitcoin Treasury Company?
A Bitcoin Treasury Company is a business that holds a significant portion of its treasury reserves in Bitcoin. The primary strategy is to increase the value of its assets per share by benefiting from the potential long-term appreciation of Bitcoin, rather than holding traditional fiat currencies which may be subject to inflation.
How do convertible bonds work in this context?
The convertible bonds issued by The Blockchain Group allow investors to lend money to the company with the option to convert that debt into company shares at a predetermined price in the future. This provides the company with immediate capital to buy Bitcoin, while offering investors potential upside through equity conversion if the share price appreciates.
What does the capital raise mean for current shareholders?
The capital infusion is intended to be value-accretive. By using the funds to acquire more Bitcoin, the company aims to increase the underlying asset value per share. However, the issuance of new shares and potential future conversion of bonds will lead to dilution, which is why the focus is on growing the asset base faster than the dilution occurs.
Why is the subscription from Adam Back significant?
Adam Back is a highly respected cryptographer and industry pioneer, known as the inventor of Hashcash, a precursor to Bitcoin. His participation as a major investor signals strong confidence in The Blockchain Group's specific strategy and its leadership team, adding considerable credibility to the venture.
What are the key risks involved?
As with any investment, there are risks. The value of the company's treasury is directly tied to the highly volatile price of Bitcoin. Market conditions, regulatory changes, and operational execution could all impact the success of the strategy. Investors should review the company's annual financial report for a comprehensive list of risk factors.