The cryptocurrency company Blockchain Group, headquartered in Paris, is increasing its expanding asset reserves by adding more Bitcoin through a bond sale of €63.3 million ($72 million).
Blockchain Group announced on May 26 that it plans to use these funds to purchase an additional 590 Bitcoins, raising its total holdings to 1,437 Bitcoins.
Currently, the trading price of Bitcoin exceeds $109,000. According to CoinGecko, at the current price, Blockchain Group could purchase 658 Bitcoins with the total funds raised.
However, the company stated that only 95% of the proceeds from the issuance will be used to purchase Bitcoin, with the remaining portion allocated for "operating expenses and management fees."
Source: Alexandre Laizet
In this bond sale, the venture capital firm Fulgur Ventures invested the largest share, amounting to €55.3 million ($62.9 million), while the crypto private investment fund Moonlight Capital invested €5 million ($5.7 million). These bonds can be converted into shares of Blockchain Group at a price of €3.809 ($4.34) per share.
Blockchain Group (ALTBG) is listed on the Paris Euronext, the second-largest stock exchange in Europe by market capitalization. The company's website states that it focuses on "increasing the number of Bitcoins per share over time by utilizing the remaining cash of the holding company and appropriate financing tools."
According to Google Finance data, ALTBG fell nearly 5.5% to €2.77 ($3.16) at the close on May 26, but has risen nearly 766% year-to-date. After the company began purchasing Bitcoin on November 5, its stock price surged 225% to €0.48 ($0.52).
Since Blockchain Group announced its Bitcoin purchasing plan, its stock price has significantly increased. Source: Google Finance
In the fiscal year 2024 performance report released on April 30, Blockchain Group reported a current yield on its Bitcoin holdings of over 709%.
Meanwhile, the company's total consolidated annual revenue was €13.864 million ($15.8 million), a decrease of 32.1% compared to the previous fiscal year's €20.408 million ($23.2 million).
As part of its performance report, the company stated that its long-term strategy is to acquire 1% of the total Bitcoin supply over the next eight years, aiming to exceed 170 Bitcoins by 2032.
An increasing number of publicly listed companies are purchasing Bitcoin as a long-term asset allocation, hoping to derive returns from this asset.
Swedish health tech company H100 Group AB became one of the latest companies to embrace the orange pill after announcing a shift to a Bitcoin purchasing strategy on May 22.
Strive Asset Management also announced on May 7 that it would transform into a Bitcoin treasury company.
Experts analyze that despite the unpredictable volatility of Bitcoin, holding Bitcoin offers tangible long-term advantages for companies, such as hedging against inflation, long-term price appreciation, and theoretically reduced correlation with the stock market over time.
Related: Reports indicate that another suspect in the New York cryptocurrency torture case will surrender.
Original: “French Blockchain Group to Buy 590 Bitcoins After Bond Issuance”
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