Paris-based cryptocurrency company The Blockchain Group plans to raise over $340 million for its Bitcoin treasury, signaling continued institutional adoption of crypto in Europe.
The Blockchain Group, which claims to be Europe’s first Bitcoin
BTC$109,395 treasury company, plans to raise 300 million euros ($342 million) to fund more BTC purchases, according to a Monday news release.
The $340 million round’s structure is inspired by the US practice of “At the Market” (ATM) offerings. Shares will be sold at market conditions initiated by the company’s counterparty, subject to a pre-agreed volume.
The raise will be carried out in tranches, with pricing based on the “higher of the previous day’s closing price or the volume-weighted average price,” capped at 21% of that day’s trading volume, the announcement said.
The announcement comes a week after the company acquired $68 million worth of Bitcoin, pushing its total holdings to 1,471 Bitcoin, or over $154 million, Cointelegraph reported on June 3.
Other institutional Bitcoin holders are also launching fundraising efforts to stack more BTC.
On Friday, Michael Saylor’s Strategy announced plans to raise nearly $1 billion through a stock offering to fund its future Bitcoin purchases, quadrupling the firm’s previously announced $250 million raise.
Strategy is the world’s largest corporate Bitcoin holder, with over $61 billion worth of Bitcoin on its books, representing 2.76% of the entire BTC supply, Bitbo data shows.
Bitcoin momentum driven by “strategic treasury” moves
Bitcoin has entered a period of price consolidation after breaching the $112,000 all-time high on May 22.
Despite the drawback, institutional adoption and strategic treasury moves continue to “anchor the bullish long-term narrative,” Nexo dispatch editor Stella Zlatareva told Cointelegraph, adding:
“Strategic buys, treasury allocations and infrastructure investment paint a picture of long-term confidence — regardless of short-term price action.”
Bitcoin’s strong rebound from the $103,000 support signals resilience, with “no signs of mass deleveraging or forced selling,” Zlatareva added.
Despite positive sentiment around treasury-based accumulation, US-listed spot Bitcoin exchange-traded funds have struggled to maintain inflows.
The ETFs saw over $47 million worth of outflows on Friday, a second consecutive day of selling after $278 million worth of net outflows on Thursday, according to Farside Investors.
Source: https://cointelegraph.com
