France’s Blockchain Group Buys 590 Bitcoin After EUR 63.3 Million Bond Sale

France’s Blockchain Group, a prominent entity in the blockchain and cryptocurrency sector, has announced its intention to purchase 590 Bitcoin following a successful bond sale. The group raised EUR 63.3 million through the issuance of convertible bonds, which will be used to fund its Bitcoin Treasury Company strategy. This move underscores the group's commitment to leveraging cryptocurrency as a strategic asset, aligning with the growing trend of institutional adoption of digital currencies.

The decision to acquire 590 Bitcoin is a significant step for France’s Blockchain Group, as it demonstrates a strong belief in the long-term value and potential of Bitcoin. By allocating a substantial portion of its bond proceeds to Bitcoin, the group is positioning itself at the forefront of the digital asset revolution. This strategy not only diversifies the group's investment portfolio but also provides a hedge against traditional financial market volatility.

The bond sale, which was oversubscribed, reflects the confidence that investors have in France’s Blockchain Group and its strategic vision. The convertible bonds offer investors the flexibility to convert their holdings into equity, providing an additional layer of appeal. This successful fundraising effort will enable the group to execute its Bitcoin Treasury Company strategy effectively, further solidifying its position in the rapidly evolving blockchain and cryptocurrency landscape.

The acquisition of 590 Bitcoin is a bold move that highlights the group's forward-thinking approach to asset management. By embracing Bitcoin, France’s Blockchain Group is not only capitalizing on the potential for significant returns but also aligning with the broader trend of institutional adoption of digital currencies. This strategy positions the group as a leader in the blockchain and cryptocurrency sector, poised to benefit from the growing acceptance and integration of digital assets into mainstream finance.

Venture capital firm Fulgur Ventures invested the lion’s share for the bond sale, with 55.3 million euros, while crypto private investment fund Moonlight Capital invested 5 million euros. The bonds will be convertible into shares of the Blockchain Group at €3.809. The Blockchain Group is listed on Euronext Paris, Europe’s second-largest stock exchange by market cap. The company’s website says it is focused on “increasing the number of Bitcoin per share over time by leveraging the holding company’s excess cash and appropriate financing instruments.”

In its 2024 financial year results, released April 30, the Blockchain Group listed the current yield from its Bitcoin holdings at over 709%. Meanwhile, its total consolidated revenue for the year was €13,864,000 compared to €20,408,000 for the previous fiscal year, representing a decrease of 32.1%. As part of its results, the company said its long-term strategy is to acquire 1% of the total Bitcoin supply over the next eight years, with a target of over 170 by 2032.

A growing number of public companies are buying Bitcoin to hold for the long term in the hopes of making gains from the asset. Swedish health tech company H100 Group AB became one of the latest companies to take the orange pill after announcing a Bitcoin-buying pivot. Strive Asset Management also announced that it will transition into a Bitcoin treasury company. Experts speculate there are tangible long-term benefits for a company holding Bitcoin despite its unpredictable volatility, such as a hedge against inflation, long-term price appreciation and theoretically lower correlation to equity markets over time.