Blockchain Firm Issues $72M Convertible Bonds to Boost BTC Holdings

# The Blockchain Group Issues $72 Million Convertible Bonds to Fund Bitcoin Acquisition PARIS—Euronext-listed firm, The Blockchain Group, has unveiled plans to issue $72 million (€63.3 million) in convertible bonds aimed at acquiring Bitcoin (BTC), as reported by Cryptopolitan on May 26. This initiative underscores the company's strategy to prioritize BTC within its asset allocation framework. # Luxembourg Subsidiary to Handle Convertible Bond Issuance These convertible bonds will be managed by the group's Luxembourg subsidiary. Priced at €3.809 per share, this represents a 30% premium to the company's closing share price on May 23. An initial tranche worth €5 million ($5.99 million) has already been issued. The bonds have a five-year maturity with the option to convert into common equity based on market trends. If the share price reaches 130% of the conversion price, or €4.9517 ($5.64), The Blockchain Group plans to convert these bonds into equity. This strategy aims to hedge against potential declines in share prices and Bitcoin's inherent volatility. # €58.3 Million Bond Secured with Key Investors Alongside its BTC initiative, The Blockchain Group has successfully completed the issuance of €58.3 million ($66.36 million) in convertible bonds without preemptive subscription rights. Convertible at a rate of €0.707 ($0.80) per share, these were allocated to significant investors such as Fulgur Ventures and UTXO Management. Renowned blockchain figure Adam Back converted his holdings at a predefined rate of €0.544 ($0.62) per share. # Aiming for BTC Leadership The company aims to augment its Bitcoin reserves to 1,473 BTC, aiming to outpace firms like Canaan Mining. Presently, it possesses 847 BTC, which falls short of the top 20 corporate Bitcoin holders. # Strengthening Position in the Cryptocurrency Arena Beyond merely accumulating BTC, The Blockchain Group is solidifying its presence in the cryptocurrency domain. Leveraging artificial intelligence, blockchain infrastructure, and data services, it is focused on long-term growth. Historically, the company has acquired Bitcoin at an average cost of $92,230, with 27.9% of its market valuation tied to BTC. # Corporations Increasing Bitcoin Reserves Amid Surging Prices This move aligns with a broader corporate trend of bolstering Bitcoin reserves. Other significant players include MicroStrategy (MSTR), Semler Scientific, Core Scientific, and BitMEX. Following Bitcoin’s peak price of $112,000, corporate acquisitions have surged. Currently, 113 publicly traded companies hold a collective 3.37 million BTC, highlighting the growing competition with large ETFs. Moves by entities like Metaplanet further illustrate the push to enhance market leverage through substantial Bitcoin holdings.