Paris-based cryptocurrency firm The Blockchain Group plans to raise over $340 million worth of capital for its Bitcoin treasury, signaling continued institutional adoption of crypto in Europe.
The Blockchain Group, which claims to be Europe’s first Bitcoin (BTC) treasury company, plans to raise 300 million euros, or around $342 million, to fund more BTC purchases, according to a June 9 press release.
The $340 million round’s structure is inspired by the US practice of “At the Market” (ATM) offerings. Under this structure, shares are 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 added.
The announcement comes a week after the European cryptocurrency firm 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 June 6, Michael Saylor’s Strategy announced its 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 short-term 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 June 6, a second consecutive day of selling after $278 million worth of net outflows on June 5, according to Farside Investors.
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