The Blockchain Group Raises $72 million in Convertible Bonds to Bolster Bitcoin Treasury Strategy

The Blockchain Group, a Paris-based, Euronext-listed company, has announced the completion of a €63.3 million (approximately $72 million) convertible bond issuance through its Luxembourg subsidiary, aimed at advancing its Bitcoin Treasury Company strategy. According to the official announcement, 95% of the funds will be allocated to purchasing additional Bitcoin, with the remaining 5% covering operational costs. This move is set to increase the company’s Bitcoin holdings to approximately 1,437 BTC, as the company plans to acquire an additional 590 Bitcoins using the raised funds, reinforcing its position as Europe’s first publicly listed firm to adopt Bitcoin as a core treasury asset.

Strategic Expansion of Bitcoin Holdings

The Blockchain Group’s latest financial maneuver involves issuing convertible bonds to raise €63.3 million, with the primary goal of acquiring around 590 additional Bitcoins. This follows a previous acquisition on May 22, 2025, when the company purchased 227 BTC at an average price of €93,518 per Bitcoin, bringing its holdings to 847 BTC valued at approximately €79.2 million at the time. The new bond issuance, completed on May 26, 2025, is structured in two tranches: an initial €5 million round led by Moonlight and a subsequent larger tranche with €55.3 million from Fulgur Ventures to complete the total raise.

The company’s strategy aligns with a growing trend among corporations to hold Bitcoin as a reserve asset, a practice popularized by firms like Strategy in the United States. By allocating 95% of the bond proceeds to Bitcoin purchases, The Blockchain Group aims to capitalize on the cryptocurrency’s long-term value appreciation while diversifying its treasury. The remaining 5% will support operational expenses, ensuring the company’s infrastructure can sustain its Bitcoin-focused strategy.

As of press time on May 26, 2025, Bitcoin’s price hovers around $109,000, according to CoinMarketCap, reflecting a 59.1% increase over the past year. This price surge underscores the potential upside for The Blockchain Group’s treasury strategy, though it also highlights the volatility inherent in such investments. The company’s decision to deepen its Bitcoin reserves comes at a time when institutional adoption of cryptocurrencies is gaining traction, particularly in Europe, where regulatory frameworks are evolving to accommodate digital assets.

Context and Industry Implications

The Blockchain Group’s move builds on its earlier efforts to establish itself as a Bitcoin Treasury Company. The Blockchain Group’s Bitcoin acquisition strategy began in November 2024 with an initial purchase of 15 BTC. The company significantly ramped up its efforts in March 2025, acquiring 580 BTC on March 26 at an approximate market price of $87,340 per Bitcoin, bringing its reserves to 620 BTC. On May 22, 2025, it added another 227 BTC. As of the press time, The Blockchain Group’s Bitcoin investments have yielded an 18.50% profit, driven by both Bitcoin’s price appreciation and strategic acquisitions.

Unlike speculative ventures, The Blockchain Group’s approach appears grounded in a long-term vision of Bitcoin as a store of value. The company’s leadership has emphasized that this strategy is not about short-term trading but about building a robust financial reserve.

However, the strategy is not without risks. Bitcoin’s price volatility, regulatory uncertainties in Europe, and the complexities of managing a convertible bond issuance could pose challenges. The Blockchain Group has mitigated some of these risks by structuring the bonds through its Luxembourg subsidiary, a jurisdiction known for its favorable regulatory environment for crypto-related activities.

From a stock performance perspective, The Blockchain Group’s Bitcoin strategy has bolstered investor confidence in its long-term growth. According to Yahoo Finance, since the major Bitcoin acquisition began on March 26, the company’s stock price has surged from €0.4750 to €2.77 by May 26, reflecting a 483.15% increase. Following the bond issuance announcement after the market closed on May 26, the stock price rose an additional 6.48% in after-hours trading as of the time of reporting.

Looking Ahead

The Blockchain Group’s €63.3 million bond issuance marks a significant milestone in its Bitcoin Treasury strategy, positioning it as a pioneer among European public companies. By increasing its Bitcoin holdings to approximately 1,437 BTC, the company is betting on the cryptocurrency’s long-term growth while navigating the challenges of market volatility and regulatory scrutiny. As institutional interest in Bitcoin continues to rise, The Blockchain Group’s approach could serve as a model for other firms exploring similar strategies.