Blockchain Group, a Euronext-listed company, has announced a new convertible bond issuance, aimed at fundraising for a growing BTC treasury. The Blockchain Group aims to raise the equivalent of $72M with plans for buying additional BTC.
Blockchain Group, an Euronext-listed company, announced a new bond valued at €63.3M ($72M) with plans to acquire more BTC. The company is the next public entity to pursue a leveraged strategy of building a BTC treasury. Following the announcement, ALTBG shares traded at $3.15 (€2.77), near their highest price for the year to date.
ALTBG shares traded near their yearly high as the company benefits from the BTC bull market. | Source: Google Finance
The bond issue will be realized through the company’s Luxemboug subsidiary. The bond will be convertible into shares of The Blockchain Group at €3.809 per share, represenging a 30% premium over the May 23 closing price. The initial realized portion of reserved convertible bonds is for $5.99M (€5M).
The bonds have a five-year maturity period, and may be convertible into common shares, depending on market performance. The company will convert the bonds if the common stock price reaches $5.64 (€4.9517), or 130% of the bond conversion price. The condition aims to prevent the main downside risk of unraveling stock prices, in addition to the unknown risk for BTC.
Blockchain Group also realized $66.36M (€58.3M) of a reserved convertible bond without preferential subscription rights. This portion is convertible into shares at $0.80 (€0.707) per share. Along with the new bond issue, Blockchain Group also converted the holdings of Adam Back at a predetermined price of $0.62 (€0.544) per share. The bond tranches were subscribed by some of the corporate backers of Blockchain Group, including Fulgur Ventures and UTXO Management.
The end goal is to expand the treasury to 1,473 BTC, surpassing the holdings of Canaan Mining.
Blockchain Group grows BTC per share
The Blockchain Group is not only a BTC buyer, but one of the main players in crypto space. The group will continue with its far-reaching goals in crypto engineering, AI, data services, and general on-chain ecosystem building.
Before the latest bond issue, the company held 847 BTC, still outside the top 20 of holders. Despite being a long-running staple in crypto, the company acquired BTC at an average price of $92,230.
Up to 27.9% of the company’s market cap is held in the form of BTC, with the potential for additional growth. The company has stated it will retain its business and leveraged BTC buying will only be a part of its strategy.
In the past few days, new buying continued for Strategy (MSTR), with smaller purchases from Semler Scientific, Kulr Technology Group, and Bitmax. The buying continued even as BTC set new price peaks as high as $112,000.
In total, 113 public companies have revealed their public BTC treasuries, though vastly varying in their holdings. Treasuries now contain 3.37M BTC, as corporate buyers compete with large-scale ETF. The recent BTC rally made corporate buyers more confident, pushing companies like Metaplanet to become top proxies for BTC ownership.
