Blockchain Group Aims to Raise $340 Million for Bitcoin Purchase

Blockchain Group, a Paris-based company with a focus on Bitcoin, has announced an ambitious plan to raise $340 million through a unique share sale method. The company, known for its strategy of accumulating Bitcoin on its balance sheet, has partnered with asset manager TOBAM to execute this fundraising initiative. The funds, if successfully raised, will be directly invested in purchasing more Bitcoin, further bolstering the company's holdings.

The company currently holds 1,471 BTC, valued at approximately $158 million. This total includes 624 BTC recently acquired and 847 BTC already in its treasury. To achieve the $340 million target, Blockchain Group is employing an "At The Market" (ATM) share sale strategy. This method, commonly used in the US, involves selling shares in small daily batches rather than all at once. TOBAM will purchase ordinary shares from Blockchain Group on a daily basis, with the share price determined by the previous day’s close or the average trading price for that day, whichever is higher.

To maintain market stability, there is a cap on the number of shares that can be sold to TOBAM in a single day. No more than 21% of that day’s trading volume can be sold, which helps prevent market flooding and ensures more stable pricing. This approach aims to raise the targeted amount without causing significant fluctuations in share value or investor confidence.

Blockchain Group has the authorization from its shareholders to issue up to €500 million ($570 million) in nominal value. However, the board must approve any increase beyond the current $340 million target. If Bitcoin maintains its current price of around $107,700, the company could acquire approximately 3,170 BTC with the full raise, more than tripling its current holdings. This move is part of a broader strategy initiated in November 2024, demonstrating the company's commitment to Bitcoin accumulation.

Bitcoin's recent performance has shown a 2.2% increase in the past day and a 3.5% increase over the past week. After reaching an all-time high of $112,000 in May, the price has since cooled off slightly but remains robust. The recent bounce from $104,100 has been seen as a positive sign by market watchers, indicating strong momentum. Other industry players, such as Strategy, led by Michael Saylor, are also increasing their Bitcoin holdings, with plans to raise nearly $1 billion, significantly higher than their earlier target of $250 million. Strategy already holds 2.75% of all Bitcoin in circulation, valued at over $61 billion.