The Blockchain Group, a Paris-based company listed on Euronext Growth Paris (ticker: ALTBG) and recognized as Europe’s first Bitcoin Treasury Company, raised €63.3 million ($72 million) through convertible bond issuances to bolster its Bitcoin holdings. The issuance, executed via its Luxembourg subsidiary, The Blockchain Group Luxembourg SA, aims to acquire approximately 590 additional Bitcoin, increasing its total holdings to around 1,437 BTC. Approximately 95% of the funds will be used for Bitcoin acquisition, with the remaining 5% allocated to operational expenses and management fees.
Key investors include Fulgur Ventures (€55.3 million), Moonlight Capital (€5 million), and UTXO Management (€3 million). The bonds, denominated in Bitcoin and convertible into shares at €3.809, carry a 30% premium over the closing price on May 23, 2025, and have a five-year maturity. This move aligns with the company’s strategy to increase Bitcoin per share, with a long-term goal of acquiring 1% of Bitcoin’s total supply by 2033. The company’s Bitcoin treasury strategy, launched in November 2024, has already driven a 709.8% BTC yield, significantly outpacing Bitcoin’s price performance.
The Blockchain Group’s €63.3 million convertible bond raise to pursue a Bitcoin treasury strategy has significant implications for the company, its investors, and the broader market, while also highlighting a growing divide in corporate approaches to cryptocurrency adoption. Acquiring ~590 additional Bitcoin brings the company’s total to ~1,437 BTC, positioning it as a significant corporate holder. This aligns with their goal of owning 1% of Bitcoin’s total supply (21 million BTC) by 2033, roughly 210,000 BTC, signaling a long-term bet on Bitcoin’s value appreciation.
The company’s 709.8% BTC yield since November 2024 demonstrates a high-return strategy compared to Bitcoin’s price growth. By tying shareholder value to Bitcoin’s performance, the company aims to deliver outsized returns if Bitcoin’s price continues to rise. The bonds, convertible at €3.809 (a 30% premium), incentivize investors to hold long-term, potentially stabilizing the stock price while aligning investor interests with Bitcoin’s performance. The five-year maturity provides flexibility for both the company and bondholders.
The Blockchain Group’s move, following the lead of companies like MicroStrategy, reinforces Bitcoin as a legitimate corporate treasury asset, especially in a high-inflation environment or amid fiat currency devaluation concerns. Backing from Fulgur Ventures, Moonlight Capital, and UTXO Management signals growing institutional confidence in Bitcoin-focused strategies, potentially encouraging other firms to follow suit.
As a Euronext-listed company, this strategy may normalize Bitcoin adoption in Europe, though it could attract scrutiny from regulators wary of crypto’s volatility or speculative nature. Allocating 95% of funds to Bitcoin purchases prioritizes crypto over traditional business operations, which could limit diversification but amplify returns if Bitcoin appreciates. Heavy Bitcoin exposure ties the company’s financial health to a volatile asset, risking significant losses if Bitcoin’s price crashes.
Using only 5% for operational expenses suggests a lean approach, but it may constrain growth in other business areas like blockchain technology development. The Blockchain Group’s strategy highlights a broader divide in corporate approaches to cryptocurrency, particularly Bitcoin. Companies like The Blockchain Group, MicroStrategy, and Tesla (to a lesser extent) view Bitcoin as a hedge against inflation, a store of value, or a high-yield asset.
They prioritize Bitcoin accumulation to diversify treasuries and capitalize on its potential upside. Many corporations remain skeptical, citing Bitcoin’s volatility, regulatory uncertainty, and environmental concerns (e.g., energy-intensive mining). These firms prefer traditional assets like bonds, equities, or cash reserves, viewing crypto as speculative.
The Blockchain Group’s long-term goal (1% of Bitcoin supply by 2033) reflects a deliberate, core business strategy tied to crypto. This contrasts with firms that hold Bitcoin opportunistically, selling during price spikes or using it for PR. Strategic adopters risk overexposure but may gain competitive advantages if Bitcoin’s adoption grows, while opportunistic players face less risk but miss out on long-term gains.
The Blockchain Group’s move as a European firm contrasts with the U.S.-centric Bitcoin treasury trend (e.g., MicroStrategy). Europe’s stricter regulatory eenvironment like MiCA framework may limit similar strategies, creating a divide between regions with varying crypto tolerance. Pro-Bitcoin firms face potential regulatory crackdowns, while conservative firms avoid these risks but may lag in innovation or returns.
The bond issuance appeals to crypto-savvy investors (e.g., Fulgur, UTXO), but traditional shareholders may worry about volatility or dilution from convertible bonds. This creates a divide in investor bases, with some embracing the high-risk, high-reward model and others preferring stability. Bitcoin’s price has risen significantly since 2020, with institutional adoption growing (e.g., ETFs, corporate treasuries). The Blockchain Group’s strategy capitalizes on this but faces risks from market corrections or regulatory shifts.
Persistent inflation and currency devaluation concerns (e.g., Euro, USD) make Bitcoin attractive, but central bank digital currencies (CBDCs) or tighter regulations could challenge its role. The Blockchain Group’s 709.8% BTC yield sets a high bar, but competitors like MicroStrategy (with larger BTC holdings) may overshadow smaller players, creating a divide between market leaders and followers.
The Blockchain Group’s bold Bitcoin treasury strategy strengthens its position as a crypto pioneer but underscores a divide between crypto-forward and traditional corporate strategies. Its success hinges on Bitcoin’s long-term performance and regulatory developments, while the divide reflects broader tensions in how businesses navigate the crypto landscape.
