Adam Back-backed The Blockchain Group acquires 580 Bitcoin, its largest-ever BTC buy

Key Takeaways

The Blockchain Group acquired 580 Bitcoin, increasing its holdings to 620 Bitcoin.
The acquisition was funded by a convertible bond, with Swissquote Bank executing the purchase.

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The Blockchain Group, a pioneering Bitcoin Treasury Company in Europe, backed by Adam Back, announced Wednesday it had acquired 580 Bitcoin, valued at approximately $50 million at current market prices.

The company’s latest Bitcoin acquisition is its biggest since it began accumulating Bitcoin.

The Blockchain Group launched its Bitcoin Treasury strategy on November 5, 2024, becoming the first European company to adopt a Bitcoin treasury strategy.

The company made its first purchase last November, with 15 Bitcoin, followed by 25 Bitcoin in December, leading to today’s purchase of 580 Bitcoin.

The purchase brings its total holdings to 620 BTC, worth around $54 million. The company funded its latest purchase using proceeds from a convertible bond issue announced on March 6.

The company introduced three new key performance indicators: “BTC Yield,” “BTC Gain,” and “BTC € Gain” to track its Bitcoin Treasury Company strategy. Since the beginning of the year, the group has achieved a BTC Yield of 709.8% and a BTC Gain of 283.9 BTC.

Strategy-inspired Bitcoin playbook

Founded in 2008, The Blockchain Group specializes in data intelligence, AI, and decentralized technology development and consulting services.

Pivoting to Bitcoin, the company aims to maximize the number of Bitcoin per share over time by accumulating Bitcoin through excess cash flow and capital raises—a strategy inspired by Strategy, the world’s largest Bitcoin treasury firm.

In an interview with La Place, Alexandre Laizet, Deputy CEO and Director of Bitcoin Strategy at The Blockchain Group, said Bitcoin offers a unique opportunity to engage in mergers and acquisitions (M&A) every two to three months, acquiring an asset that delivers approximately 60% annualized growth over four years without the execution risks associated with traditional M&A.

The goal, according to Laizet, is to enhance long-term shareholder value through any capital-raising activity.

“The essence of our strategy is simple: accumulate Bitcoin, never sell it, and hold it indefinitely,” he asserted.

Commenting on institutional Bitcoin adoption, he predicted that it would take between 10 and 15 years for widespread acceptance.

“The next phase is to establish all the necessary links between traditional finance and the emerging Bitcoin-driven financial ecosystem,” Laizet added. “This includes integrating Bitcoin into corporate treasuries as a store of value and facilitating transactions through stablecoins and blockchain-based money market funds.”