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The Blockchain Group Unveils €300M Bitcoin Acquisition Strategy with TOBAM
The Blockchain Group, a Paris-listed firm, has implemented an ambitious strategy to bolster its Bitcoin acquisition through a newly devised capital programme. This initiative aims to enhance the company’s treasury with Bitcoin directly, employing a structure inspired by US at-the-market (ATM) transactions. The key components of this programme were recently announced in a press release.
Details of the Funding Agreement
In collaboration with French asset manager TOBAM, The Blockchain Group has established a standby agreement worth €300 million (approximately AU$525 million). This partnership allows the issuance of new shares on a continuous basis. TOBAM holds the unique advantage of requesting these new shares daily, priced at either the day’s closing price or the volume-weighted average price—whichever is more advantageous.
To maintain a balance in the market, the daily share issuance is capped at 21% of the total trading volume. While this funding arrangement is limited to a six-month term, both The Blockchain Group and TOBAM reserve the right to extend or terminate the agreement at any time.
Key Features of the Structure
A significant divergence from typical ATM arrangements prevalent in the US is that this £300 million deal does not require intermediaries to handle share sales. TOBAM will not receive compensation for facilitating the transaction and may retain the issued shares as a long-term investment, reflecting a strategic focus on sustained growth rather than immediate liquidity.
The Blockchain Group has committed to providing regular updates about the number of new shares issued, their respective pricing, and the volume of Bitcoin added to its treasury. This transparency includes disclosing Bitcoin-per-share figures based on a fully diluted calculation throughout the programme.
Adoption of a Saylor-esque Strategy in a European Context
While the underlying strategy mirrors the approach taken by prominent figures like Michael Saylor in the US, The Blockchain Group’s initiative reflects necessary adjustments to align with European regulatory demands and a capital model that prioritises shareholder interests.
In a related development, The Blockchain Group has recently acquired 1,045 Bitcoin for approximately US$110 million (AU$168 million). This acquisition has elevated its total holdings to 582,000 Bitcoin, acquired at an aggregate cost of US$40.7 billion (AU$62 billion), yielding an average price of US$70,086 (AU$107,500) per coin.
In summary, The Blockchain Group’s innovative approach, which combines elements of US funding strategies and a unique European emphasis on shareholder alignment, positions the firm to significantly enhance its Bitcoin reserves while maintaining transparency and regulatory compliance. The successful execution of this capital programme could serve as a model for future Bitcoin-related ventures in Europe, potentially influencing the dynamics of cryptocurrency acquisition strategies on the continent.
