French company Blockchain Group has announced a capital raise of $7.7 million aimed at implementing a Bitcoin-based treasury strategy.
Details on Capital Increase
Blockchain Group revealed that it raised €7.2 million (approximately $7.7 million) through an At-The-Market (ATM) capital raise program. New shares were sold at an average price of €4.49 each, with asset management firm TOBAM acting as its partner.
What is a Bitcoin Treasury Strategy?
A Bitcoin treasury strategy involves holding Bitcoin as a primary reserve asset in a company's balance sheet, alongside traditional assets. Reasons for adopting this strategy may include inflation hedging, long-term price appreciation potential, and diversification. However, it also carries risks such as price volatility.
Trends in Institutional Crypto Adoption
Blockchain Group joins a growing trend where companies increasingly consider holding cryptocurrencies in their reserves. Notably, MicroStrategy has significantly increased its BTC holdings. This suggests that the use of Bitcoin as a corporate asset is becoming more mainstream.
The $7.7 million capital raise and shift to a Bitcoin treasury strategy emphasizes the increasing interest among companies to integrate cryptocurrencies into corporate finance, despite the associated risks.
