Blockchain Group Raises $71,9M For Bitcoin Purchases

Blockchain Group Raises $71,9 Million for Bitcoin Purchases

27 May 2025 at 11: 09

Reading time: 2 minutes

Implementation of an Innovative Financial Strategy

Paris-listed Blockchain Group (ALTBG), a company specializing in data analytics and decentralized technologies, recently issued €63,3 million ($71,9 million) in convertible bonds to support its Bitcoin strategy. This financing, carried out through its Luxembourg subsidiary, demonstrates a significant ambition to expand the company’s BTC reserves and strengthen its investment base.

Critical Components of the Deal

An important aspect of this transaction is a BTC $5,7 million denominated bond, subscribed by Moonlight Capital, issued at a 30% premium to the May 23 closing price of $4,3 per share, demonstrating confidence in the long-term valuation of the stock and its underlying assets.

In addition, the Company has completed the exercise of all rights for the Convertible Notes B-02 (“OCA Tranche 2”). These notes, originally reserved for strategic investors such as Fulgur Ventures and UTXO Management, were issued at USD 0,79 per share, resulting in a total value of USD 66 million.

Long-term vision and strategic adjustments

A significant development is the conversion by investor Adam Back of all of his OCA Tranche 1 bonds into 14,88 million shares, highlighting his long-standing commitment to the company’s vision. These capital infusions are intended to fund the purchase of 590 BTC, which could increase The Blockchain Group’s total BTC holdings to around 1.437 BTC.

Closing note

The Blockchain Group’s strategic use of convertible bonds reflects not only an innovative approach to capital raising, but also a strong commitment to growing its bitcoin reserves. These developments will undoubtedly strengthen the company’s position in the rapidly evolving crypto market.

Frequently Asked Questions

What are convertible bonds?
Convertible bonds are a type of debt security that can be converted by investors into shares of the company, usually at a predetermined rate courseThis offers investors the opportunity of a return through interest and the chance to profit from share price appreciation.

What is the importance of expanding BTC reserves?
Increasing BTC reserves can bolster a company’s credibility in the crypto industry, improve its balance sheet, and boost its ability to invest in future growth. It can also protect asset values from market fluctuations.

Why is the 30% price premium important?
A 30% premium over the closing price can indicate strong market confidence in the stock's future growth. It can also indicate that investors are willing to pay a higher price for a safer and potentially more profitable investment.

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