Blockchain Group Plans to Raise $340 Million to Expand Bitcoin Holdings
The post Blockchain Group Plans to Raise $340 Million to Expand Bitcoin Holdings appeared on BitcoinEthereumNews.com.
Blockchain Group plans $340M raise to boost Bitcoin reserve holdings. TOBAM to purchase shares directly, bypassing traditional intermediaries. New offering may solidify Blockchain Group’s role in crypto finance. The Paris-based Blockchain Group has announced a bold new plan to raise $340 million. The company plans to add to its Bitcoin reserves with the help of this capital. This plan involves offering “ATM-type” shares, similar to the U.S. “At The Market” (ATM) model. The purpose behind the move is to encourage investors and raise the company’s status in the marketplace for cryptocurrencies. Blockchain Group Partners with TOBAM for €300M Share Sale Plan First, Blockchain Group is cooperating with asset manager TOBAM to complete this plan. TOBAM will sign up for the ordinary shares that the company is now issuing. Authorization will be given on a daily or weekly basis so TOBAM can file purchase orders after the market has ended. Pricing of each share happens based on what happened in the market previously. In particular, the price will be calculated by choosing the highest amount between the closing price and the volume-weighted average price (VWAP). In addition, the company’s purchases will never be able to exceed 21% of the previous day’s trading volume. Every week, TOBAM’s purchase requests will be gathered by Blockchain Group and dealt with as a single capital boost. The final cost for the shares is found by averaging the requests made during the week. When prices are too low, the company will use the minimum floor price that was set by its board earlier. ATMs usually do things differently from this program. ATM programs typically rely on a financial intermediary to sell the shares, and most of the time does not hold onto them afterward. In this situation, TOBAM is not serving as a middleman in the…
