The Blockchain Group Receives Shareholder Approval to Raise $11 Billion for Bitcoin Purchases
The Blockchain Group made a groundbreaking announcement on June 10 when they secured shareholder approval to raise over €10 billion ($11 billion) for additional Bitcoin (BTC) purchases. This decision, which was formalized following a proposal put forth just a day earlier, marks a significant step in the company’s Bitcoin Treasury Company strategy.
At an ordinary and extraordinary general meeting, investors representing 39% of voting rights showed overwhelming support for the resolutions, with approval rates exceeding 95%. This mandate grants the directors the authority to issue equity or other securities and access public or private markets as needed, without preferential subscription rights.
CEO Jean-Philippe Casadepax-Soulet expressed excitement about the mandate, stating that it will accelerate the company’s Bitcoin Treasury Company strategy by increasing the number of BTC per share on a fully diluted basis over time. Additionally, shareholders elected Alexandre Laizet to the board and appointed him as deputy chief executive, with a focus on Bitcoin strategy for a term extending through December 2030.
The approved authorization surpasses the previously announced €300 million at-the-market (ATM) facility in collaboration with asset manager TOBAM. This structure enables The Blockchain Group to sell new shares in discreet tranches at prevailing market prices, with TOBAM serving as the sole subscriber and potentially acquiring up to 39% of the company’s equity.
Market Context and Corporate Strategy
The shareholder vote comes at a time of relatively subdued volatility for Bitcoin, which is currently trading at $108,937.66, close to its all-time high. The increased corporate interest in hard asset reserves has coincided with the adoption of the Markets in Crypto-Assets (MiCA) regulation in Europe, which sets standards for custody and disclosure of digital assets.
Board members emphasized the flexibility provided by the authorization to respond swiftly to market opportunities. The approved instruments include ordinary shares, preferred shares, warrants, and convertible bonds, enabling the treasury team to align funding costs with market demand.
The Blockchain Group’s Balance Sheet and Future Plans
The company’s corporate treasury program kicked off in early June with the acquisition of 624 BTC, valued at approximately $69 million, bringing their total holdings to 1,471 BTC worth around $160 million. Management intends to use the proceeds from the expanded authorization for similar acquisitions, positioning the company as one of Europe’s most active public buyers of Bitcoin.
Unlike their North American counterparts, The Blockchain Group operates diversified subsidiaries in data intelligence, artificial intelligence consulting, and decentralized technology development. Executives view the treasury allocation as a supplementary use of excess capital rather than a complete shift to a single-asset business model.
In conclusion, The Blockchain Group’s shareholder approval to raise $11 billion for Bitcoin purchases signals a significant commitment to expanding their Bitcoin holdings and solidifying their position in the digital asset space. With a clear strategy in place and a focus on leveraging market opportunities, the company is poised for continued growth and success in the evolving landscape of digital assets.