The Blockchain Group Starts 300M-Euro ATM Share Sale to Expand Bitcoin Holdings
The Blockchain Group (ALTBG), Europe’s self-proclaimed first Bitcoin Treasury Company, has announced a significant share issuance program. This program, valued at up to €300 million (approximately $342.5 million), aims to further ALTBG’s strategic objective of increasing its bitcoin holdings per share. The capital raise is structured as an “at the market” (ATM) offering, a mechanism that allows for flexibility in share issuance based on daily market conditions.
This ATM program is uniquely backed by TOBAM, a prominent French asset manager with a long-standing investment in both Bitcoin (BTC) and ALTBG itself. TOBAM’s involvement is noteworthy because they are acting directly, purchasing shares on behalf of their clients, rather than acting as an intermediary broker, as is typical in similar U.S. ATM programs. This direct participation gives TOBAM considerable influence over the capital raise.
The share issuance process is designed to protect ALTBG’s shareholders. TOBAM will purchase new shares at the higher of the previous day’s closing price or its volume-weighted average price, ensuring a fair valuation. Daily purchase volume is capped at 21% of the day’s trading activity, mitigating potential market volatility. The proceeds from this share issuance will be exclusively used to acquire more Bitcoin, directly contributing to the company’s stated goal of increasing its Bitcoin holdings per share.
ALTBG’s recent Bitcoin acquisition strategy has already seen the company accumulate 1,471 BTC at an average price of $102,507, as of June 3rd. This significant investment highlights their commitment to a Bitcoin-centric approach. TOBAM’s participation could significantly increase their stake in ALTBG, potentially rising from 3% to over 39% if the program is fully executed at current market prices. A forthcoming shareholder vote on June 10th could even expand the program to €500 million, further amplifying its impact. The market has reacted positively to this news, with ALTBG shares experiencing a 20% increase, reaching €4.9 per share. The company currently boasts a market capitalization of €543 million. This capital raise represents a bold move by ALTBG, demonstrating a strong belief in the long-term value of Bitcoin and signifying a significant development in the European cryptocurrency market.
