Adam Back-supported Bitcoin Treasury firm, Blockchain Group, wants to raise $340 million through ‘ATM-type’ shares as a way to raise capital with the intention of boosting its BTC holdings.
In a recent press release, the Paris-based company declared that it will be partnering with asset manager TOBAM to raise capital to boost its Bitcoin (BTC) Treasury. By allowing TOBAM to subscribe to ordinary shares issued by Blockchain Group, the firm hopes to raise a total revenue of $340 million which they will use to boost its BTC holdings.
“The Program allows TOBAM, on a daily basis, to subscribe to ordinary shares of the Company by submitting a subscription request after market close. Each request is subject to pricing and volume limits based on the market conditions,” wrote Blockchain Group.
At press time, BTC has gone up by nearly 2% and is currently trading at $107,126. In the past week, BTC has gone up nearly 2.5%. If Blockchain Group does manage to raise $340 million, then it stands a chance to add more than 3171.46 BTC to its Bitcoin Treasury. The Blockchain Group currently owns a total of 1,471 BTC ($157.5 million), including 624 BTC acquired in a recent purchase and 847 BTC held previously.
The program follows a structure called “At The Market” pricing, which is similar to the a model usually affiliated with U.S. companies. Instead of releasing all the shares into the market, Blockchain Group intends to sell shares directly at market prices, in tranches, and only under certain limits.
This means that TOBAM can subscribe to ordinary shares belonging to Blockchain Group on a daily basis, allowing them to submit a request after the market closes.
According to the press release, the company plans to sell the share price at a limit that’s either higher than the stock market closing price or at the volume weighted average price of the trading day before TOBAM’s request.
Based on the company’s shareholder general meeting results, the firm has agreed to issue a maximum nominal amount of €500 million ($570 million) in nominal value. Although, the increase will only take place if it is authorized by the Blockchain Group’s board.
Blockchain Group has adopted a Bitcoin accumulation strategy since November 2024, becoming the first European company to start a Bitcoin Treasury.
Since Bitcoin reached a new all-time high in May, many Bitcoin-focused corporations have been accelerating their Bitcoin acquisition strategy. Most recently, Metaplanet vowed to raise its Bitcoin Treasury to hold 210,000 BTC by 2027.
