Background and Capital Increase Overview
The Blockchain Group (ALTBG), listed on Euronext Growth Paris and recognized as Europe's first Bitcoin Treasury Company, has announced a capital increase of approximately €8.6 million to bolster its Bitcoin Treasury Company strategy. The funding was raised through two operations: a Reserved Capital Increase and a Private Placement, both priced at €1.279 per share. This move underscores the company's commitment to accumulating Bitcoin as a primary treasury asset.
Pricing and Investor Details
The issue price of €1.279 per share represents a 20.18% premium over the 20-day volume-weighted average share price but a 46.26% discount compared to the closing price on May 19, 2025, reflecting significant recent volatility. In the Reserved Capital Increase, 3.37 million shares were issued to selected investors, including Robbie van den Oetelaar, TOBAM Bitcoin Treasury Opportunities Fund, and Quadrille Capital, raising over €4.3 million. The Private Placement raised another €4.35 million through the issuance of 3.4 million shares targeting qualified investors.
Use of Proceeds and Strategic Direction
The Board of Directors, acting under delegated authority from the shareholders' meeting on February 21, 2025 (Fifth Resolution), decided on May 19, 2025, to issue a total of 6,736,000 new shares (3.37M for reserved increase and 3.4M for private placement) without pre-emptive rights. The company stated: "The funds raised will enable the Company to strengthen its Bitcoin Treasury Company strategy, consisting in the accumulation of Bitcoin, while continuing to develop the operational activities of its subsidiaries in data intelligence, AI, and decentralized tech." Following the increase, share capital stands at €4.37 million, divided into over 109 million shares.
Additional Financing: Convertible Bond with Adam Back
On May 12, 2025, The Blockchain Group announced it had secured approximately €12.1 million through a convertible bond issuance reserved for Adam Back, CEO of Blockstream. This further highlights the company's deep integration into the Bitcoin ecosystem and its partnership with a key figure in Bitcoin technology development.