The Blockchain Group Boosts Bitcoin Holdings by 97%

The Blockchain Group, a leading European firm specializing in data intelligence, AI, and decentralized technology consulting and development, has made a substantial investment in Bitcoin. The company's subsidiary, The Blockchain Group Luxembourg SA, acquired an additional 580 BTC for approximately 47.3 million euros, increasing its total holdings to 620 BTC. This acquisition was funded through the proceeds of a convertible bond issuance announced earlier this month.

The purchase was executed by Swissquote Bank Europe SA, a virtual asset service provider registered with the Luxembourg regulator. The BTC is securely held via the technological solution of Swiss company Taurus, a leader in digital asset infrastructures. The average cost per bitcoin for this acquisition was around 81,550 euros, with the total value of the group's BTC holdings now standing at approximately 50.5 million euros.

This strategic move is part of The Blockchain Group's Bitcoin Treasury Company strategy, which aims to increase Bitcoin per share over time. The company has adopted new key performance indicators (KPIs) to monitor this strategy: 'BTC Yield', 'BTC Gain', and 'BTC € Gain'. These KPIs reflect the percentage change in the ratio of total BTC holdings to fully diluted shares outstanding, the number of BTC held at the beginning of a period multiplied by the 'BTC Yield' for that period, and the euro value of the 'BTC Gain', respectively.

As of the latest acquisition, The Blockchain Group has achieved a 'BTC Yield' of approximately 709.8% year-to-date, a 'BTC Gain' of around 283.9 BTC, and a 'BTC € Gain' of approximately 23.2 million euros. These indicators are not measures of operating performance or financial liquidity but are used to illustrate the manner in which the company finances the acquisition of bitcoin.

The Blockchain Group's decision to adopt these KPIs aligns with standard practices among companies implementing similar strategies. However, it is important to note that these indicators do not account for debt and other liabilities, and they assume that all indebtedness will be refinanced or converted into shares of common stock. Additionally, the trading price of the company's common stock depends on numerous factors beyond the quantity of bitcoins held and the number of shares outstanding.

The company reminds investors of the risks associated with its Bitcoin Treasury Company strategy, including extreme price volatility, liquidity risk, regulatory and tax risks, and operational and cybersecurity risks. These factors could negatively impact the company's operations, financial position, and outlook.

The Blockchain Group's strategic acquisition of additional BTC underscores its commitment to leveraging digital assets as a core component of its business strategy. By increasing its holdings, the company aims to enhance its position as a leader in the Bitcoin Treasury Company space, focusing on data intelligence, AI, and decentralized technology.