Blockchain Group to Expand Bitcoin Reserve After €63.3M Bond Sale

Blockchain Group, headquartered in France, has issued €63.3 million in five-year convertible bonds via its Luxembourg subsidiary. The funds will be used to purchase Bitcoin and support general corporate purposes, including operational costs.

The bonds are split into two components: a €5 million new tranche of preferred convertibles at a conversion price of €3.809 — reflecting a 30% premium over the May 23 share price of €2.77 — and the conversion of €58.3 million in previously reserved bonds at €0.707 per share, including shares attributed to Adam Back valued at €0.544.

The instruments mature in five years and trigger automatic conversion to common shares if the price hits around €4.95 — a 130% uplift over the initial strike. Blockchain Group described the hybrid model as a built-in safeguard, aimed at buffering volatility and protecting investors from downside risk.

Check this out: France’s Blockchain Group Raises €8.65M to Boost BTC Reserves and Strengthen Subsidiaries

Prominent strategic investors, including Fulgur Ventures, UTXO Management, and Moonlight Capital, have subscribed to select tranches of the issuance. Of the total proceeds, 95% will be directed toward Bitcoin accumulation, while 5% will support the company’s operational activities.

BTC Reserve Boost

Blockchain Group’s about to scoop up 590 more BTC, pushing its total to ~1,437 coins — all secured with Swissquote Bank Europe. That puts it ahead of Canaan Mining and squarely in the top 20 club of public Bitcoin holders. Before the raise, the firm already held 847 BTC, bought in at an average of around $90K.

Of interest: European Blockchain Firm Targets $24B in Bitcoin Over Next Decade

Blockchain Group joining the BTC-buying crowd adds fuel to the bull run — and might just inspire more institutions to jump in. Meanwhile, Strategy (ex-MicroStrategy) made headlines yesterday with a $427.1M buy: 4,020 BTC snapped up even as Bitcoin hit fresh ATHs.

Strategy Beyond BTC

Blockchain Group views itself as both a digital asset investor and a technology provider, with ongoing initiatives in blockchain infrastructure, artificial intelligence, and decentralized ecosystems. Management has clarified that the recent debt financing to grow its crypto portfolio is only one component of a diversified strategy. Core business operations and innovation will remain central.

Analysts note that convertible instruments offer a compelling mix of predictable income and capital appreciation potential via conversion mechanisms. However, the success of such strategies will depend on the strength of the broader bull trend and future regulatory developments. With institutional interest on the rise, additional bond offerings and BTC acquisitions may become a recurring component of the company’s capital strategy.