The Blockchain Group Expands Bitcoin Treasury with €17 Million Purchase, Achieves 1,173% BTC Yield

The Blockchain Group (EURONEXT: ALTBG), Europe's first publicly-traded Bitcoin Treasury company, has completed a significant expansion of its cryptocurrency holdings through a series of strategic acquisitions totaling 182 BTC for approximately €17 million. The Paris-listed company announced the milestone on June 18, 2025, marking another major step in its aggressive Bitcoin accumulation strategy that has delivered extraordinary returns since its inception.

Record-Breaking Performance Metrics

The company's Bitcoin Treasury strategy has generated remarkable results, with The Blockchain Group reporting a BTC Yield of 1,173.2% year-to-date (YTD) and 57.2% quarter-to-date (QTD). These performance indicators reflect the company's success in increasing its Bitcoin holdings per share through strategic financing and acquisition activities.

The impressive metrics translate to substantial gains: the company has achieved a BTC Gain of 469.3 BTC YTD and 354.8 BTC QTD, representing a BTC Euro Gain of €43.8 million YTD and €33.1 million QTD. These figures underscore the effectiveness of The Blockchain Group's approach to building Bitcoin reserves while managing share dilution.

Strategic Financing Operations

The recent acquisition spree was funded through a sophisticated series of convertible bond issuances and warrant conversions completed between May and June 2025. The company executed four major financing operations:

UTXO Management Subscription: A €3 million convertible bond issuance enabled the acquisition of 31 BTC for approximately €2.9 million, with bonds convertible at €0.7072 per share.

Moonlight Capital Investment: A €4.6 million convertible bond arrangement facilitated the purchase of 48 BTC for €4.4 million, with conversion at €3.809 per share, representing a 30% premium over the May 23, 2025, closing price.

Ludovic Chechin-Laurans Participation: A €2.4 million convertible bond issuance allowed for the acquisition of 25 BTC, maintaining the same conversion terms as the UTXO Management arrangement.

TOBAM Partnership: The largest single transaction involved a €6 million convertible bond subscription by TOBAM, enabling the purchase of 62 BTC for €5.8 million, with conversion at €6.24 per share.

Additionally, the company converted BSA 2025-01 warrants into 2,980,092 ordinary shares, raising €1.6 million to acquire 16 BTC for €1.5 million.

Current Holdings and Market Position

As of June 18, 2025, The Blockchain Group and its Luxembourg subsidiary hold a combined total of 1,653 BTC, representing an acquisition value of approximately €148.9 million based on an average purchase price of €90,081 per Bitcoin. This substantial treasury positions the company as a significant institutional Bitcoin holder in the European market.

The company's Bitcoin acquisition strategy has been methodical and consistent since its initial purchase in November 2024. The acquisition timeline shows steady accumulation:

• November 2024: Initial 15 BTC purchase at €63,729 per Bitcoin
• December 2024: Added 25 BTC at €90,511 per Bitcoin
• March 2025: Major acquisition of 580 BTC at €81,550 per Bitcoin
• May 2025: Purchased 227 BTC at €93,518 per Bitcoin
• June 2025: Added 624 BTC at €96,447 per Bitcoin
• Latest acquisition: 182 BTC at €93,264 per Bitcoin

Operational Infrastructure and Custody

The Blockchain Group has established a robust operational infrastructure to support its Bitcoin Treasury operations. The company utilizes professional custody solutions through partnerships with regulated financial institutions:

Banque Delubac & Cie, registered as a Digital Asset Service Provider (DASP) with the French financial regulator AMF, executes Bitcoin acquisitions funded through warrant exercises and provides secure custody via the Swiss company Taurus's technological platform.

Swissquote Bank Europe SA, a Virtual Asset Service Provider (VASP) registered with Luxembourg's financial regulator CSSF, handles Bitcoin acquisitions funded through the company's Luxembourg subsidiary's convertible bond issuances, also utilizing Taurus for secure custody.

This dual-custody approach provides geographic diversification and regulatory compliance across multiple European jurisdictions, demonstrating the company's commitment to institutional-grade Bitcoin treasury management.

Future Growth Potential

The Blockchain Group has indicated additional growth potential through outstanding commitments and authorized transactions. The company notes that announced operations, including legal adjustment measures related to OCA Tranche 1 subscriptions by TOBAM and Adam Back, plus capital increases under the "ATM-type" program with TOBAM, could enable the acquisition of approximately 70 additional BTC.

This potential expansion would bring the company's total Bitcoin holdings to 1,723 BTC, assuming theoretical Bitcoin valuations around €100,000 and allocation of 90-95% of raised funds toward Bitcoin acquisition.

Share Capital Impact and Dilution Management

The recent financing activities have impacted The Blockchain Group's share capital structure. As of June 18, 2025, the company has 126,728,969 issued common shares, with a fully diluted share count of 316,207,689 when including potential conversions of outstanding convertible bonds and granted free shares.

The current shareholder distribution shows Fulgur Ventures holding the largest potential stake at 46.14% on a fully diluted basis, followed by Adam Back at 10.81%, and public and institutional investors at 30.84%. This structure reflects the company's strategic partnerships while maintaining significant public market participation.

Understanding BTC Yield Methodology

The Blockchain Group's BTC Yield metric requires careful interpretation, as the company emphasizes it differs from traditional financial yield measures. BTC Yield reflects the percentage change in the ratio of total BTC holdings to fully diluted shares outstanding over a given period, essentially measuring the company's efficiency in accumulating Bitcoin relative to share dilution.

The BTC Gain metric represents the number of Bitcoins held at the beginning of a period multiplied by the BTC Yield for that period, while BTC Euro Gain converts this figure to euro terms using the acquisition cost per Bitcoin of the last purchase in the applicable period.

Importantly, these metrics do not account for debt, other liabilities, or traditional investment returns, and assume convertible debt instruments will convert to equity. The company stresses these are supplemental metrics for assessing Bitcoin accumulation efficiency rather than replacements for traditional financial analysis.

Industry Context and Market Implications

The Blockchain Group's aggressive Bitcoin accumulation strategy occurs amid broader institutional adoption of Bitcoin treasury strategies. Since Bitcoin reached new all-time highs in 2024 and early 2025, numerous corporations have accelerated their Bitcoin acquisition programs, creating sustained institutional demand for the cryptocurrency.

As Europe's first Bitcoin Treasury company, The Blockchain Group's approach provides a template for other European companies considering similar strategies. The company's success in raising capital specifically for Bitcoin acquisition through various debt and equity instruments demonstrates investor appetite for Bitcoin exposure through public market vehicles.

Risk Considerations and Market Dynamics

The company acknowledges significant risks associated with its Bitcoin-focused strategy, referencing detailed risk factors in its 2024 annual financial report. Bitcoin price volatility directly impacts the company's asset values, while regulatory changes could affect operations across multiple European jurisdictions.

The company's stock price depends on numerous factors beyond Bitcoin holdings and share count, potentially trading at premiums or discounts to the underlying Bitcoin value. Market conditions, regulatory developments, and the execution of the company's operational business segments all influence overall company valuation.

Conclusion

The Blockchain Group's latest Bitcoin acquisition reinforces its position as a pioneering European Bitcoin Treasury company, demonstrating the viability of Bitcoin accumulation strategies for publicly-traded entities. With 1,653 BTC worth approximately €149 million and extraordinary yield metrics, the company has established a significant presence in the institutional Bitcoin market.

The sophisticated financing approach, combining convertible bonds, warrants, and strategic partnerships, provides a framework for continued Bitcoin accumulation while managing dilution concerns. As Bitcoin adoption continues expanding among institutional investors, The Blockchain Group's experience offers valuable insights into implementing and scaling Bitcoin treasury operations in the European market.

The company's commitment to regulatory compliance, professional custody solutions, and transparent reporting standards positions it well for continued growth as the Bitcoin treasury trend evolves across traditional corporate finance landscapes.