Bitcoin-backed shares trading by The Blockchain Group to be broadened through US Over-the-Counter (OTC) market listing
The Blockchain Group, a leading Bitcoin treasury company in Europe, has made history by becoming the first Bitcoin treasury company listed on both Euronext Growth Paris and the US OTC Markets Group's OTCQX Best Market (OTCQX). This move signifies a significant step forward in the growing acceptance of Bitcoin as a legitimate asset class in the corporate world.
With this listing, The Blockchain Group currently holds approximately 1.12% of its target 170,000 BTC by 2032. The company has recently boosted its Bitcoin holdings by 116 BTC, bringing its total to 1,904 BTC. The total cost of these acquisitions amounts to €172 million, with an average entry price of approximately €90,332 per BTC. This strategic move has resulted in an impressive year-to-date BTC yield of approximately 1,349%.
The OTCQX market provides a transparent and regulated environment for international companies to engage US investors. Existing shares currently traded on Euronext Growth Paris will be made available to US investors, with shares traded in US dollars and settled according to US market standards. Market makers will facilitate liquidity and compliance for the traded shares.
The decision to list on the OTCQX market was driven by The Blockchain Group's desire to follow financial reporting standards compatible with Euronext Growth. The OTCQX market's rigorous standards align with the company's commitment to transparency and regulatory compliance.
The emergence of Bitcoin treasuries among corporations offers several strategic benefits. Firstly, Bitcoin's low correlation with traditional assets makes it a valuable hedge against market volatility, enhancing financial flexibility and creating long-term value. By including Bitcoin in their treasuries, companies can diversify their portfolios, reducing dependence on traditional assets and increasing resilience against economic downturns.
Secondly, Bitcoin treasuries can contribute to institutional lending, enhancing financial liquidity and fostering strategic investments. Bitcoin's potential for long-term growth can provide companies with a strategic asset that appreciates over time, aligning with growth-oriented business strategies.
Thirdly, recent regulatory developments, such as the approval of spot Bitcoin ETFs, have legitimized Bitcoin as an asset class, encouraging institutional adoption and reducing regulatory uncertainty. As more companies adopt Bitcoin treasuries, it signals broader market acceptance, which can further legitimize Bitcoin's role in corporate finance.
Lastly, holding Bitcoin offers enhanced financial flexibility. Bitcoin can be used as collateral for loans or other financial instruments, providing companies with additional financial flexibility and options for leveraging their assets. By holding Bitcoin, companies can manage risks associated with traditional assets and inflation, as Bitcoin's scarcity and decentralized nature can provide a buffer against economic instability.
In conclusion, The Blockchain Group's listing on the US OTCID market marks a significant milestone in the growing acceptance of Bitcoin as a legitimate asset class in the corporate world. The strategic benefits of Bitcoin treasuries, including diversification, institutional lending, regulatory endorsement, and enhanced financial flexibility, contribute to the growing legitimacy of Bitcoin in institutional finance.
The Blockchain Group, with its 1,904 BTC holdings, aims to acquire a total of 170,000 BTC by 2032, investing €172 million so far with an average entry price of approximately €90,332 per BTC. The company's listing on the OTCQX market, a transparent and regulated environment for international companies, will make its shares available to US investors, traded in US dollars and settled according to US market standards, with market makers facilitating liquidity and compliance.
This strategic move by The Blockchain Group is driven by a desire to follow financial reporting standards compatible with Euronext Growth, reflecting the OTCQX market's rigorous standards and the company's commitment to transparency and regulatory compliance. Bitcoin's low correlation with traditional assets, potential for long-term growth, increasing legitimacy through regulatory endorsements, and use as collateral make it an attractive addition to corporate treasuries.
By including Bitcoin in their treasuries, corporations can diversify their portfolios, enhancing financial flexibility, and increasing resilience against economic downturns. The growing acceptance of Bitcoin as a legitimate asset class in the corporate world, as evidenced by listings like The Blockchain Group's on the OTCQX market, is a significant step forward in its recognition as a valuable asset in the corporate finance landscape.
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