On March 26, they stepped up by buying 580 BTC. Then, on May 22, another 227 BTC went into their wallet. These steady buys show a growing appetite for Bitcoin as a core asset.
Most of the recent Bitcoin buy—544 BTC—was funded by a $63 million convertible bond issued to Fulgur Ventures. Based on reports, the bond allows Blockchain Group to convert debt into shares later, if investors choose.
The rest—80 BTC—came from an almost $10 million capital raise completed in late May. That cash was specifically earmarked for crypto acquisition. Using debt and fresh capital, the firm seems bent on scaling up its Bitcoin holdings quickly. It also shows they’d rather raise funds than tap into existing cash reserves.
According to the company, using trusted custodians is key to keeping the digital assets safe. With these partnerships in place, Blockchain Group doesn’t need to worry about managing private keys on its own. That lets them focus on buying more Bitcoin instead of dealing with technical security issues.
At current prices, the firm’s 1,437 BTC is worth a little over $150 million. As of May 31, the group reported an unrealized gain of nearly $48 million. That’s a healthy return on the earlier buys.
But Bitcoin’s price swings can be sharp. If BTC drops, those paper gains could vanish fast. Plus, issuing a $63 million convertible bond means possible share dilution if bondholders convert to equity.
Reports disclose that Blockchain Group plans to boost its “Bitcoin per share” figure through more targeted capital raises tied to crypto buys.
The big bet is that Bitcoin’s price will keep climbing, making these purchases worthwhile. Yet, if the market takes a downturn, investors could see both coin values and share prices slip.
Featured image from Unsplash, chart from TradingView
