The Blockchain Group (TBG), a Paris-based enterprise, recently announced the addition of 624 Bitcoins to their portfolio, worth approximately 60.2 million Euros. This new acquisition has increased TBG’s total Bitcoin 
$75,158 assets to 1,471 units. The organization reported an impressive 1,097% return on its Bitcoin portfolio since the start of the year. Listed on European stock exchanges, TBG continues to solidify its status as a “Bitcoin treasury,” reigniting expectations around cryptocurrency strategies among institutional investors.
TBG’s Bitcoin Treasury Strategy
The recent acquisition represents the latest in a succession of Bitcoin purchases announced by TBG during the first half of the year. It raised the cryptocurrency balance on their accounts to 1,471 Bitcoins. Management stated that their consistent cost-averaging policy, combined with rising prices, resulted in an impressive yield of 1,097%. Rémi Fortbac, the CEO, highlighted the Bitcoin treasury as a testament to the company’s long-term value creation vision for its shareholders. The portfolio’s performance is unparalleled among publicly-traded European companies.
The company’s treasury team secures the custody process using multi-signature wallets compliant with banking standards. Quarterly audit reports are published independently, and transactions are transparently announced in the Euronext regulatory bulletin. Analysts highlight that TBG’s preference for Bitcoin over cash strengthens its balance sheet ratios amid high inflation and negative real interest rates, enhancing its market credibility. Experts indicate this model as Europe’s first significant response to the United States’ strategy adopted by companies like MicroStrategy.
Source of Funds for Bitcoin Acquisition
To expand its Bitcoin treasury, TBG issued convertible bonds worth 63.3 million Euros last week, securing fresh capital. Crypto-focused funds, Moonlight Capital and Fulgur Ventures, acquired most of these bonds. The management revealed the funding facilitated the acquisition of 544 Bitcoins, with the remaining 80 Bitcoins financed through a 9.8 million Euro capital increase completed in May. The hybrid capital method limits shareholder dilution while attracting a pool of strategic investors focused on Bitcoin.
In the wake of the news, TBG shares surged by up to 4% in early trading hours, with trading volume tripling the monthly average. Market experts note the absence of “buying the dip” strategy by the company, emphasizing its long-term holding approach with Bitcoin prices around 105,000 dollars.
While some analysts caution that volatility could increase balance sheet risks, the trend of institutional investors escaping interest pressures by moving to alternative assets strengthens TBG’s position. France’s AMF regulatory body labeled TBG’s significant Bitcoin holding as “innovative yet manageable” provided that transparent reporting continues.
