- The Blockchain Group plans to raise $340M to increase its Bitcoin treasury holdings through an “At the Market” stock offering model.
- Institutional Bitcoin buying momentum continues, with companies like Strategy and The Blockchain Group signaling long-term confidence.
- Bitcoin ETFs face outflows, but strategic treasury accumulation reinforces the bullish long-term narrative for BTC.
Paris-based crypto firm, The Blockchain Group, announced that it intends to raise €300 million (approximately $342 million) in order to increase its Bitcoin treasury holdings. The raising begins to stand out as another step in the growing trends of institutional crypto adoption in Europe, while it further carves its identity as the region’s first dedicated Bitcoin treasury company.
In a press release issued Monday, the company revealed the capital raise will follow a U.S.-style “At the Market” (ATM) model. This method allows shares to be issued directly into the market at prevailing prices, providing the firm with flexibility to capitalize on favorable market conditions without setting a fixed offering price in advance.
Innovative ATM Structure for Capital Raise
The ATM structure will allow The Blockchain Group to raise capital in tranches with a pricing premium set at a higher price between the previous day’s closing price or the volume-weighted average price, and limited to a 21% trading volume of that day. This structure makes a later raising with little market superstructure.
The prior announcement follows the company buying another 624 BTC worth $68 million, making its total Bitcoin holding of 1,471 BTC with a value north of $154 million. With capital to be raised, The Blockchain Group is furthering its long-term growth in Bitcoins.
Confluence of Fires Sparks Bitcoin Narrative
The move consists of similar moves by other large entities focused on Bitcoin. Strategy, led by Michael Saylor, recently announced a nearly $1 billion stock offering to fund additional Bitcoin purchases. The company came to be known for being the biggest corporate Bitcoin holder with over $61 billion worth of BTC, owns 2.76% of the entire circulating supply.
Despite Bitcoin trading below its recent all-time high of $112,000, strategic treasury accumulation from institutions continues to provide bullish momentum. According to Nexo dispatch, such moves reflect growing long-term confidence, especially as BTC recently rebounded strongly from $103,000 support with no signs of forced selling or deleveraging.
While institutional buying through corporate treasuries is rising, U.S.-listed spot Bitcoin ETFs have shown signs of weakness. According to data from Farside Investors, these ETFs witnessed outflows totaling $47 million on Friday, following $278 million in outflows the previous day. This divergence underscores a shifting trend, where direct strategic Bitcoin purchases may be seen as more effective by some firms compared to ETF exposure.
As market volatility continues, The Blockchain Group’s $340 million initiative could serve as a blueprint for other European institutions aiming to strengthen their crypto positions through direct treasury holdings.
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