- Blockchain Group plans $340M raise to boost Bitcoin reserve holdings.
- TOBAM to purchase shares directly, bypassing traditional intermediaries.
- New offering may solidify Blockchain Group’s role in crypto finance.
The Paris-based Blockchain Group has announced a bold new plan to raise $340 million. The company plans to add to its Bitcoin reserves with the help of this capital. This plan involves offering “ATM-type” shares, similar to the U.S. “At The Market” (ATM) model. The purpose behind the move is to encourage investors and raise the company’s status in the marketplace for cryptocurrencies.
Blockchain Group Partners with TOBAM for €300M Share Sale Plan
First, Blockchain Group is cooperating with asset manager TOBAM to complete this plan. TOBAM will sign up for the ordinary shares that the company is now issuing. Authorization will be given on a daily or weekly basis so TOBAM can file purchase orders after the market has ended.
Pricing of each share happens based on what happened in the market previously. In particular, the price will be calculated by choosing the highest amount between the closing price and the volume-weighted average price (VWAP). In addition, the company’s purchases will never be able to exceed 21% of the previous day’s trading volume.
Every week, TOBAM’s purchase requests will be gathered by Blockchain Group and dealt with as a single capital boost. The final cost for the shares is found by averaging the requests made during the week. When prices are too low, the company will use the minimum floor price that was set by its board earlier.
ATMs usually do things differently from this program. ATM programs typically rely on a financial intermediary to sell the shares, and most of the time does not hold onto them afterward. In this situation, TOBAM is not serving as a middleman in the financial market. As a result, TOBAM may keep or sell the shares in order to follow its planned strategy. Blockchain Group is not paying the firm, and it is not helping with the placement or underwriting of the company’s shares.
Moreover, the program does not require approval from France’s financial regulator, AMF. This means the process of implementing technology will be quicker and less complicated. The maximum amount of capital that can be increased under this program is €300 million. However, the company’s board can select a new or increased amount when necessary.
New Share Offering Could Cement Blockchain Group Crypto Role
It should also be mentioned that Blockchain Group is part of Euronext Growth Paris. The business is widely known as Europe’s first Bitcoin Treasury company. Alibaba has subsidiaries working on artificial intelligence, data intelligence, and blockchain technology as well.
Overall, the new share offering allows Blockchain Group to add more Bitcoins to its reserves. At the same time, it permits TOBAM to buy company shares outright, without being subject to lock-up restrictions. The success of the $340 million boost could strengthen Blockchain Group’s role in digital finance. Keeping in mind the need for change and new methods, the plan shows how companies are handling the introduction of crypto and blockchain investment strategies.
