In a pioneering move within the cryptocurrency domain, the Paris-based Blockchain Group has unveiled a major fundraising initiative to boost its Bitcoin assets significantly. Already holding Bitcoin worth $154 million, the organization plans to bolster its reserves by an additional 300 million Euros, approximately $340 million, aiming to construct Europe’s first private Bitcoin treasury. The company intends to utilize a gradual capital increase strategy via an At-The-Market (ATM) model, starting with 500,000 Euros and not surpassing 21% of daily trading volume. Financial advisory is being provided by TOBAM as the firm positions itself as a global competitor.
How Does the ATM Model Work?
The ATM model adopted by the Blockchain Group allows it to sell shares at existing market prices, thereby retaining liquidity without precipitating substantial drops from bulk sales. This method sets daily sales based on the greater of the previous day’s closing price or the volume-weighted average price, making up to 21% of the total trading volume for that day. Initial sales of 500,000 Euros will lay the groundwork for expanded operations as demand necessitates.
This strategic decision by Blockchain Group illustrates a brake from typical European methods, merging capital market instruments with innovative crypto-focused approaches. This aims to enhance flexibility in risk management while ensuring exchange price stability.
What Role Does TOBAM Play?
TOBAM is not only providing brokerage services but is integral to distributing funds effectively and crafting long-term return strategies. Deputy General Manager Alexandre Laizet mentioned on social media that this endeavor is essential for their “global expansion.”
Bitcoin remains paramount in the company’s growth objectives, as emphasized by Laizet. Chief Operating Officer Valentin Kosanovic further cemented this by stating their Bitcoin treasury efforts would have “121% focus,” underscoring a significant commitment to maximizing returns. This philosophy aims to attract and reassure institutional investors.
Recent updates bear witness to Europe’s agility, noting the Blockchain Group’s resolve to press forward with a 300 million Euro plans in Bitcoin investment, following Strategy’s announcement of a $1 billion acquisition, thereby keeping Europe competitive against larger U.S. market dynamics.
– Blockchain Group intends to become Europe’s first private Bitcoin treasury.
– The ATM model aids liquidity without significant market impact.
– TOBAM is pivotal in efficient financial strategy execution.
– The initiative positions Europe as a serious alternative to U.S. models.
While reports indicate a $47 million outflow from U.S. spot Bitcoin ETFs, Blockchain Group’s long-term focus remains unperturbed by short-term volatility, suggesting high potential to set new precedents in Europe’s Bitcoin treasury sphere.
