Paris-based Blockchain collectiveness aims to acquire a 1% stake in Bitcoin
The Blockchain Group Transforms into a Bitcoin Treasury Company
In a significant move, European tech company The Blockchain Group (ALTBG) has announced a strategic pivot, transforming into a "Bitcoin treasury company." This shift, announced by Vice-CEO Alexandre Laizet in November 2024, marks a new era for the company.
The company's bitcoin-focused strategy has been meticulously planned. In a general assembly in February, The Blockchain Group resolved to raise 300 million euros, a portion of which was used to issue its first convertible bonds worth 48.6 million euros in early March. The company intends to utilize various financial instruments to maximize its BTC Yield, including private bonds and potential issuance of more shares.
The Blockchain Group's bitcoin-focused strategy has already shown promising results. Since the end of 2023, the company has seen an approximately 1% increase in assets on its balance sheet. Moreover, the company's BTC Yield has surged from 141.2% in Q4 2024 to 709.8% by the end of Q1 2025. Each share now backs 332 Satoshis.
The company's performance is measured using metrics such as "BTC Yield" and "BTC Gain." The former refers to the growth of Bitcoin per share for The Blockchain Group, while the latter expresses the same value adjusted for the Bitcoin price in euros.
The Blockchain Group's ambitious goal is to acquire around one percent of all bitcoins in existence over the next eight years, a capital requirement of up to 100 billion dollars. This ambitious plan positions The Blockchain Group to become Europe's largest Bitcoin treasury.
It's important to note that The Blockchain Group was initially a startup focused on blockchain technology and launched a platform for NFTs called Eniblock. However, the company is now shifting its focus to its Bitcoin strategy, although it continues to be involved in other business areas such as data collection and AI transformation, digital application development, and decentralized software development.
The company's stock price has been on a rollercoaster ride. After falling from 2 euros to a low of 10 cents, the announcement of its bitcoin-focused strategy has seen the stock recover and is now at 1.14 euros.
The Blockchain Group's bitcoin strategy has put it in direct competition with established players like MicroStrategy. The company's capital, enough to hold up to 260,000 bitcoins, is a testament to its commitment to this new direction.
The Blockchain Group has also collaborated with metaverse companies, integrated DeFi, migrated to Polygon, and used Hyperledger Fabric, Tezos, and other technologies. Its strategic pivot towards becoming a Bitcoin treasury company is a bold move that is reshaping the tech landscape.
