Blockchain Group: free allocation of share subscription warrants

Yesterday, The Blockchain Group announced the free allocation of share subscription warrants (BSA) to its shareholders.

This concerns the issuance of the BSA 2025-01, allocated free of charge to all shareholders in proportion to the number of shares owned.

The purpose is to thank the current shareholders for their loyalty, and to allow the financing of the acceleration of the “Bitcoin Treasury Company” strategy launched by the company on November 5, 2024.

Blockchain Group: strategies and performance on the Stock Exchange

The Blockchain Group is a French company that starting from November 2024 became the first Bitcoin Treasury Company in Europe.

It has been listed on the stock exchange since 2011, when it had a different name and was involved in something completely different.

Its shares experienced a collapse between 2014 and 2019, dropping from 4.8€ to less than 0.07€.

Although in 2021 they managed to climb back above €2.4, during the following year they fell below €0.3, so much so that by October 2024 they were still at €0.1.

With the electoral victory of Trump, and with the new business strategy aimed at becoming a Bitcoin Treasury Company, within a few weeks the stock price of ALTBG returned above 0.3€, then reached a relative peak above 0.6€ in February.

Since from November the company has effectively changed both its name and its activity, it is not advisable to compare the stock market performances of its stock with those of past years, limiting oneself to recent performances. From the end of October until today, it has been marking an excellent +300%, even though the price is now below 0.5€.

The subscription warrants for shares

The company will issue 1 BSA for each existing share, at a price set at €0.544, which is a premium of 36% compared to the closing price on April 3, 2025.

Therefore, each existing share will entitle the holder to the allocation of 1 BSA, and 7 BSA will entitle the holder to subscribe to 1 new share at the price of €0.544, for a period of 1 year from the allocation date (April 11, 2025), with a minimum subscription amount of 14,000 BSA (2,000 new shares).

The whole represents a capital increase of a total maximum amount of €7,257,305.44.

The warrant will then be listed on Euronext Growth and valued on the market, so even shareholders with less than 14,000 BSA will have the opportunity to sell their warrants or purchase others.

The Bitcoin accumulation strategy of Blockchain Group

The company started purchasing BTC precisely on November 5, 2024.

Initially, he had bought only 15, but by December he had increased them to 40.

The bulk of the purchase, however, occurred in March, when it brought the BTC in cash to quota 620.

Currently, the Bitcoin they own have a value of about 40 million dollars, but having been purchased at an average price of $87,000, the investment is currently at a 9% loss.

If all the BSA 2025-01 were redeemed, the gross proceeds of the operation could exceed 7 million euros, and a portion of these funds will be used to purchase additional BTC.

The accumulation plan

The strategy of Blockchain Group is very similar to that of Strategy (formerly MicroStrategy).

In fact, it is a capital accumulation plan (PAC), also known as DCA (Dollar-Cost Averaging). In this case, since it is not executed in dollars but in euros, the term PAC is more correct.

The concept of DCA is based on the fact that, by investing at regular intervals over a certain period of time regardless of the price, instead of making a single investment, you ultimately purchase at an average price that could be lower than that of a single purchase. In other words, it reduces the risks of buying at high prices, and allows you to accumulate over time.

To tell the truth, the strategy of Blockchain Group, and that of Strategy, do not involve purchases at truly regular intervals, with the same amount of capital each time. In fact, although these are more or less regular purchases, the timing is not always exactly the same, and especially the amounts are not.

So it is a strategy very similar to a PAC (or a DCA), but technically slightly different. The goal, however, is the same: to increase the BTC in the portfolio over time, averaging the purchase price.