The Blockchain Group Announces Capital Increase of Approximately €3 Million
The Blockchain Group, recognized as Europe’s pioneering Bitcoin Treasury Company, has revealed a significant capital increase plan, pricing shares at approximately €4.056 each, aimed at raising around €3 million. This initiative is part of an existing “ATM-type” capital increase agreement with TOBAM, which supports the company’s strategy of expanding its Bitcoin holdings over time.
Details of the Capital Increase Agreement
Utilizing the authority granted by its Board of Directors on June 11, 2025, which was approved during the General Meeting on June 10, 2025, the Chief Executive Officer executed the capital increase on July 7, 2025. The total amount raised is €2,997,177.20, through the issuance of 739,000 new ordinary shares at an average subscription price of around €4.056 per share. This capital increase amalgamated subscription requests from TOBAM received between June 30 and July 4, 2025. The subscription price was calculated based on the terms established in the ATM Agreement signed on June 6, 2025, which stipulates that the price for each request must be the higher of the closing price or the volume-weighted average price (VWAP) from the preceding trading day, with the number of shares requested not exceeding 21% of that trading volume. These shares will be available for trading on Euronext Growth in Paris.
Subscription Rights and Shareholder Impact
In light of the agreement, the Chief Executive Officer has chosen to waive the preferential subscription rights of existing shareholders in favor of the designated investors, detailed as follows: TOBAM BITCOIN Enhanced Fund will acquire 345,000 shares at an average price of €4.037, the TOBAM Bitcoin Treasury Opportunities Fund will receive 280,000 shares at €4.063, the TOBAM BTC Linked and Blockchain Equity Fund will obtain 39,000 shares at €4.087, and MDP Blockchain will acquire 75,000 shares at €4.095, culminating in a total of 739,000 shares at an average price of €4.056, amounting to €2,997,177.20.
Impact on Share Capital Distribution
The capital increase will alter the share capital distribution of the company as of July 8, 2025. On a fully diluted basis, the breakdown of shareholding will be as follows: Executives will hold 8.93% and 5.74% of the fully diluted shares, Fulgur Ventures will have no shares currently but will possess 45.46% on a fully diluted basis, Adam Back will hold 12.63% and 10.95%, TOBAM will have 4.35% and 3.32%, and public and institutional investors will command 74.09% and 31.46%. The total shares will be 134,661,845 and 320,990,295 respectively when fully diluted.
Potential for Additional Bitcoin Holdings
The recent operations may facilitate the acquisition of approximately 25 additional Bitcoin, potentially elevating the company’s overall Bitcoin holdings to 1,929 BTC.
Equity Impact of Capital Increase
The capital increase is expected to have a notable effect on equity per share. Prior to the increase, the company’s total equity stood at €48,355,071.38 with 134,661,845 shares, resulting in an equity per share of €0.36 on an undiluted basis and €0.60 on a fully diluted basis. Post-increase, the total equity is projected to rise to €51,352,248.58 with an adjusted share count of 135,400,845, leading to an equity per share of €0.38 on an undiluted basis and €0.61 on a fully diluted basis.
Risk Factors
The company highlights that various risk factors associated with its operations are outlined in its annual financial report for 2024, accessible on its website. The realization of these risks could adversely affect the company’s business operations, financial status, results, development trajectory, or overall outlook.
About The Blockchain Group
The Blockchain Group is a Bitcoin Treasury Company listed on Euronext Growth in Paris, specializing in Data Intelligence, Artificial Intelligence, and consulting and development in decentralized technologies.
Disclaimer
This announcement does not constitute an offer or solicitation to sell or purchase securities in any jurisdiction, and should not be considered an offer or solicitation in any region where such actions would be illegal without proper registration or certification under applicable local laws.
