France’s Blockchain Group to buy 590 Bitcoin after bond sale

Paris-based Blockchain Group, listed on Euronext Paris, is bolstering its Bitcoin treasury. A €63.3 million ($72 million) bond sale, primarily funded by Fulgur Ventures (€55.3 million) and Moonlight Capital (€5 million), will allow the company to acquire approximately 590 BTC. While the funds could theoretically purchase 658 BTC at current prices (over $109,000 per BTC, according to CoinGecko), 5% will be allocated to operational expenses and management fees. The bonds are convertible into Blockchain Group shares at €3.809 ($4.34).

This strategic move builds on the company’s November 2023 Bitcoin acquisition initiative, which resulted in a 225% stock price surge. The company’s long-term objective is to amass 1% of the total Bitcoin supply within eight years, targeting over 17,000 BTC by 2032. Their 2024 financial results, released April 30th, revealed a 709% yield from existing Bitcoin holdings, despite a 32.1% decrease in consolidated revenue (€13,864,000 or $15.8 million) compared to the previous year (€20,408,000 or $23.2 million).

Blockchain Group’s actions reflect a growing trend of companies adopting a Bitcoin-centric strategy. The “orange pill,” as this phenomenon is known, sees public companies accumulating Bitcoin as a long-term investment, hedging against inflation and potentially diversifying their portfolios. Recent examples include Swedish health tech company H100 Group AB and Strive Asset Management, both announcing Bitcoin acquisition plans in May 2024. Experts suggest that despite Bitcoin’s volatility, long-term price appreciation and lower correlation to equity markets make it an attractive asset for corporate treasuries. Blockchain Group’s significant year-to-date stock gain of nearly 766% (Google Finance) underscores the market’s positive response to this strategy. The company closed May 26th down 5.5% at €2.77 ($3.16).