Europe’s First Bitcoin Treasury Firm Expands Holdings
The Blockchain Group, Europe’s first dedicated Bitcoin treasury firm, has expanded its Bitcoin reserves with a $20 million purchase. The acquisition brings its total holdings to 1,653 BTC, valued at over $170 million at current prices.
Funding the Strategic Expansion
The firm financed this move through convertible bond issuances totaling €18 million ($20.7 million). Key investors included UTXO Management, Moonlight Capital, TOBAM, and Ludovic Chechin-Laurans, each participating in different portions of the bond offering.
Transaction Execution
Banque Delubac & Cie and Swissquote Bank Europe SA facilitated the transactions, with Taurus, a Swiss digital asset infrastructure provider, handling custody. This reflects growing institutional confidence in Bitcoin as a reserve asset.
Strong Performance Metrics
The Blockchain Group reports a remarkable 1,173.2% year-to-date Bitcoin yield. The firm’s average acquisition cost of $103,000 per BTC positions it favorably against current market prices.
Future Growth Plans
The company plans to acquire an additional 70 BTC, potentially increasing reserves to 1,723 BTC. It also announced a €300 million ‘At the Market’ offering to further strengthen its Bitcoin treasury position.
Broader Market Trend
This development aligns with a growing trend of public companies adding Bitcoin to their balance sheets. BitcoinTreasuries.NET reports at least 26 entities have done so in the past month. However, Fakhul Miah of GoMining Institutional cautions that smaller firms may lack proper risk management frameworks for such moves.
Risk Considerations
Standard Chartered Bank warns that Bitcoin’s volatility could challenge companies if prices fall below $90,000, potentially triggering liquidations and reputational damage.
