Blockchain Group, a Paris-based company claiming the title of Europe's first dedicated Bitcoin treasury firm, has announced its intention to raise €300 million (approximately $340 million) through an innovative ATM-style share sale. This ambitious move comes as the firm seeks to double its current holdings of over $154 million in Bitcoin, positioning itself as a significant player within Europe's institutional Bitcoin landscape.
By employing a unique fundraising approach inspired by Wall Street's At-The-Market (ATM) model, Blockchain Group plans to sell shares at market prices incrementally rather than all at once, ensuring market stability. The sales will occur under specified limits, allowing only a maximum of 21% of the daily trading volume to minimize price impact. Starting with an initial offering of €500,000, the company aims to scale its efforts gradually.
Partnership with the well-regarded asset manager TOBAM adds further credibility to the initiative. TOBAM will oversee the capital raise, channeling funds into growth and yield-centric strategies while reinforcing Blockchain Group's focus on long-term business development, firmly anchored in Bitcoin investment.
Alexandre Laizet, the Deputy CEO and head of Bitcoin strategy, emphasized on social media that this capital raise is not just about increasing the treasury. Instead, it represents a chance for global expansion and cementing their role as a leader in Europe’s Bitcoin market. Analysts see this strategy as a crucial development as Blockchain Group joins the ranks of major institutional players, signaling that Europe is actively enhancing its participation in the cryptocurrency space.
The timing of this announcement is significant, following MicroStrategy's plan to raise $1 billion to add to its Bitcoin holdings, highlighting the growing competitive landscape. As organizations like Blockchain Group push forward without being swayed by market fluctuations, this capital initiative could be pivotal in shaping the future of institutional crypto strategy in Europe. What this entails for investors and the overall market is something to keep a close watch on.
By employing a unique fundraising approach inspired by Wall Street's At-The-Market (ATM) model, Blockchain Group plans to sell shares at market prices incrementally rather than all at once, ensuring market stability. The sales will occur under specified limits, allowing only a maximum of 21% of the daily trading volume to minimize price impact. Starting with an initial offering of €500,000, the company aims to scale its efforts gradually.
Partnership with the well-regarded asset manager TOBAM adds further credibility to the initiative. TOBAM will oversee the capital raise, channeling funds into growth and yield-centric strategies while reinforcing Blockchain Group's focus on long-term business development, firmly anchored in Bitcoin investment.
Alexandre Laizet, the Deputy CEO and head of Bitcoin strategy, emphasized on social media that this capital raise is not just about increasing the treasury. Instead, it represents a chance for global expansion and cementing their role as a leader in Europe’s Bitcoin market. Analysts see this strategy as a crucial development as Blockchain Group joins the ranks of major institutional players, signaling that Europe is actively enhancing its participation in the cryptocurrency space.
The timing of this announcement is significant, following MicroStrategy's plan to raise $1 billion to add to its Bitcoin holdings, highlighting the growing competitive landscape. As organizations like Blockchain Group push forward without being swayed by market fluctuations, this capital initiative could be pivotal in shaping the future of institutional crypto strategy in Europe. What this entails for investors and the overall market is something to keep a close watch on.
