Key Takeaways:
- €12.1M raised via convertible bonds, backed by Bitcoin pioneer Adam Back.
- Funds to bolster Bitcoin holdings and fuel AI/decentralized tech ventures.
- Bonds convert to shares at a 30% premium, reflecting investor confidence.
Blockchain Group Doubles Down on Bitcoin and AI Ambitions
The Blockchain Group (ticker ALTBG), Europe’s first publicly traded Bitcoin treasury company, has secured €12.1 million through a convertible bond issuance, with notable backing from Adam Back, CEO of Blockstream and Bitcoin’s early cypherpunk innovator. The move aims to amplify the firm’s Bitcoin reserves while scaling its subsidiaries in artificial intelligence (AI) and decentralized technology, signaling an intrepid venture on crypto’s intersection with enterprise innovation.
The official group X announcement follows:
How the Convertible Bond Works
A convertible bond allows investors like Back to lend money to the company with the option to convert the debt into equity (shares) later. Key terms:
- Conversion price: €0.707 per share, a 30% premium over the initial tranche.
- Use of proceeds: 70% allocated to Bitcoin acquisitions, 30% to AI and decentralized tech R&D.
This is a vote of confidence in Bitcoin’s role as a corporate asset, not just funding.
Why Adam Back’s Involvement Matters
Back, inventor of Bitcoin’s proof-of-work predecessor Hashcash, isn’t just an investor; he’s a symbol of crypto’s ideological roots. His participation bridges ALTBG’s corporate strategy with Bitcoin’s decentralized spirit. Analysts note the deal’s structure avoids dilution risks for existing shareholders, as conversion hinges on future share price performance.
Bitcoin Treasury: A Hedge Against Inflation
ALTBG currently holds 1,850 BTC (~€110M), per its 2024 annual report. The new funds could add more or less 200 BTC at current prices, mirroring strategies by MicroStrategy and Tesla. Unlike those firms, however, ALTBG pairs its Bitcoin bets with revenue-generating AI and blockchain consulting arms, which grew 22% YoY in 2024.
- The only thing better than Bitcoin is more Bitcoin⚡️
Deputy CEO, Director of Bitcoin Strategy @_ALTBG Europe’s First Bitcoin Treasury Company
Risks: Volatility and Execution
While Bitcoin’s 120% surge since 2023 boosts ALTBG’s balance sheet, critics highlight risks:
- BTC volatility: A 30% price drop could erode treasury value.
- AI competition: Rivals like NVIDIA and startups dominate AI infrastructure.
- Conversion overhang: Bondholders may sell shares post-conversion, pressuring stock prices.
Corporate Bitcoin Adoption Enters New Phase
ALTBG’s bond issuance reflects a maturing market where Bitcoin isn’t just a speculative asset; it’s a strategic reserve. The firm aims to balance innovation with financial prudence by coupling crypto holdings with AI ventures. Yet, as Back’s involvement shows, the approach isn’t just about profit; it’s about proving Bitcoin’s utility beyond digital gold.
Will ALTBG’s hybrid model inspire more firms to marry Bitcoin with tech R&D? For now, the €12.1M bet says “game on.”
