The Blockchain Group Reports 1,100% Share Gain, Expands Bitcoin Reserves by 709.8%

The Blockchain Group, a European Bitcoin treasury company, has announced a significant shift in its corporate strategy, focusing on expanding its Bitcoin reserves. The company, which rebranded itself as Europe’s first “Bitcoin Treasury Company” in November 2024, reported a net profit of €1.36 million for 2024, a notable turnaround from a €22.7 million loss the previous year. This financial improvement was achieved through deep restructuring efforts, including divestitures and cost reductions, which led to a 43% decrease in general and administrative expenses and a 34% reduction in overall staff costs.

Despite a 32% year-over-year decline in revenue to €13.86 million, the company's profitability was bolstered by non-recurring gains and lower operating costs. The strategic shift involved substantial Bitcoin purchases, beginning in late 2024. The initial acquisitions, totaling 40 BTC, were funded through €3.5 million in capital increases. This momentum continued into early 2025, with the company issuing €48.6 million in convertible bonds in March, enabling the acquisition of an additional 580 BTC, bringing the total holdings to 620 BTC valued at approximately €50.5 million.

The company's approach is centered on maximizing what it terms “BTC Yield,” or the ratio of Bitcoin per fully diluted share. This metric increased from 41 sats per share in late 2024 to 332 sats by the end of Q1 2025, a 709.8% increase. As of April 2025, shares had advanced more than 1,100% in less than 12 months, driven by investor enthusiasm for the Bitcoin-centric model.

The Blockchain Group has outlined an ambitious eight-year roadmap targeting Bitcoin holdings of between 170,000 and 260,000 BTC by 2033, representing approximately 1% of Bitcoin’s capped 21 million supply. To fund this plan, the company projects scaling its capital raising activities dramatically, estimating potential needs between €1 billion and €100 billion across various phases. Strategic investors, including Adam Back, UTXO Management, and Paris-based asset manager TOBAM, have lent support to this vision. TOBAM has previously suggested that Bitcoin treasury companies may outperform Bitcoin itself over time, based on capital accretion and market premiums.

However, the company acknowledges several risks, including extreme price volatility, liquidity constraints, cybersecurity exposure, and regulatory uncertainty. Bitcoin holdings are not subject to legal or contractual restrictions but depend on market conditions and internal risk management practices. The Blockchain Group closed its fiscal year with net financial debt of €2.74 million and available cash of €729,000. Auditors certified the financial statements without reservations, confirming the company’s going concern status.

The future of The Blockchain Group hinges on the successful execution of its Bitcoin accumulation strategy, which will rely heavily on continued capital market access and investor appetite. The company's management is focused on navigating these challenges to achieve its ambitious goals.