The Blockchain Group (ALTBG), a much higher potential than Strategy?

[Free Market Capitalist]

Today I want to tell you about a French company that has copied StrategyBTC's strategy, with Saylor's approval, and whose presentation you can see here:

Bringing the Saylor Strategy to Europe w/ TBG CEO Alexandre Laizet | Bitcoin for Corporations 2025

It officially transitioned into a Bitcoin treasury company on November 5, 2024 (lol), becoming the first publicly traded European company to adopt Bitcoin as its core treasury reserve asset.

It currently has just 620 bitcoins But for that reason it has much more growth potential than StrategyBTC. Let's look at their forecast:




If in 8 years they get the low end of what they forecast, 170K bitcoins, that means multiplying their holdings by 274. Strategy can't multiply their bitcoins by 274 because there is nowhere near that much bitcoin in existence.

Since adopting the strategy, they have become the most profitable company in Europe.



What I also like about the company is that it has at its core operational companies Trimane and iORGA, focused on data intelligence, AI, and decentralized technology development, similar to Strategy.

The stock is currently trading at about 2 mNAV per share*, but with a much higher appreciation potential. This week I am going to take a gamble and buy about 100 shares, which will be 100-odd euros. I think it is a much more informed gamble and with a much greater chance of succeeding than going to the casino or buying lottery.

I am opening a thread to follow up and for us to be able to comment.

*This would result from dividing the 620 bitcoins it holds by the 93 384 449 shares he held in December 2024. Since then it has increased shares a couple of times, so we can assume a 2 and a bit mNAV but I think it doesn't affect the calculation much if we take into account the future potential.

[Ambatman]

With their low marketcap and still been in their early phase the potential is massive
But I'm quite skeptical about their long run sustainability because of the financial report among others.

it has at its core operational companies Trimane and iORGA, focused on data intelligence, AI, and decentralized technology development

As can be seen below they experience a negative in operating income meaning most of their earnings is from Bitcoin

 

In my opinion too reliant on Bitcoin price which they average around $85K per Bitcoin unlike strategy.

Another is their cash reserve which when aligned with their average Bitcoin price and core business performance doesn't paint a good picture


Source https://stockanalysis.com/quote/epa/ALTBG/statistics/

Another which can be termed over thinking is that it's from EU.
A country whose stance about Bitcoin hasn't been positive, they could attack the company when they grow bigger
Well there's option for migrating though.
bad habit of mine in looking at negatives mostly before investing



Like you said, It's better taking a gamble on a Company's potential future than in a casino.

The Blockchain Group (ALTBG), a much higher potential than Strategy? Yeah ceteris paribus, because it's just starting and not quite known yet unlike MSTR.

[Free Market Capitalist]

Good analysis, Ambatman. Some nuances though.

But I'm quite skeptical about their long run sustainability because of the financial report among others.

It is good to be skeptical

As can be seen below they experience a negative in operating income meaning most of their earnings is from Bitcoin

 

That's wrong, since the change of management they have turned profitable.

THE BLOCKCHAIN GROUP company press release from 30/04/2025 - The Blockchain Group publishes its 2024 annual results and confirms its return to profitability

In my opinion too reliant on Bitcoin price which they average around $85K per Bitcoin unlike strategy.

The same risk Strategy had when they started buying bitcoin in 2020.

Another is their cash reserve which when aligned with their average Bitcoin price and core business performance doesn't paint a good picture

I see it the complete opposite way. That's what the very rich do, they have fiat debts but a lot of assets. The €62M they have in bitcoin is much higher than €2.6M net cash debt.

Another which can be termed over thinking is that it's from EU.
A country whose stance about Bitcoin hasn't been positive, they could attack the company when they grow bigger

That's the highest risk factor for me. But the ongoing EU regulations are mainly against privacy, and for the time being they will not have a problem with this as all their bitcoins, as well as their accounts, are public and audited.

[Ambatman]

That's wrong, since the change of management they have turned profitable.

THE BLOCKCHAIN GROUP company press release from 30/04/2025 - The Blockchain Group publishes its 2024 annual results and confirms its return to profitability

Alright. That means the data I had access to was outdated.
From the report the only negative variation was on revenue
Which I believe should be as a result of the restructuring in cutting out of non core activities.
And the net income was also helped by them been profit focused  and cutting cost.

The same risk Strategy had when they started buying bitcoin in 2020.

The risk is lower than I perceived now that I know their performance has improved.

That's what the very rich do, they have fiat debts but a lot of assets. The €62M they have in bitcoin is much higher than €2.6M net cash debt

. Oh I never had issue with the debt( I know how vital it is)  
Just the low cash in relation to their revenue performance.

But the ongoing EU regulations are mainly against privacy, and for the time being they will not have a problem with this as all their bitcoins, as well as their accounts, are public and audited.

Yeah you are right. Escaped me that they are currently operating well in accordance to EU laws.
The more chaotic, the more the reward after a win
If they are able to survive EU environment and stance towards Bitcoin
Then Staying number one in Europe Bitcoin treasury company is certain because more would sprang up.
It's like there's FOMO in the market.


I believe we might have done the expected correction that could hold us for a few years but I doubt they can survive a 40% fall
And depending on how they plan on buying. Their average Bitcoin Would continue increasing.


I find it more attractive than getting MSTR stocks though, I'm playing safe with Bitcoin
A little risk wouldn't hurt.

[Free Market Capitalist]

I believe we might have done the expected correction that could hold us for a few years but I doubt they can survive a 40% fall
And depending on how they plan on buying. Their average Bitcoin Would continue increasing.

You get what a lot of people get. ALTBG buys bitcoins mainly through ATM. No matter how much the price drops, they will “survive” just the same. They also use instruments such as convertible debt, strategically placed over time, which are usually converted into shares. They could be converted to cash in an unfavorable scenario, but for that the debt to equity ratio is taken care of and the conversion dates are strategically spread.

I find it more attractive than getting MSTR stocks though, I'm playing safe with Bitcoin
A little risk wouldn't hurt.

I would like to make it clear that this thread is not an investment recommendation. Even if I personally see it as a potentially interesting investment, I am going to put in only 100 or so euros, which is a tiny part of my portfolio.

[Free Market Capitalist]

So, I finally bought 100 shares at about €1.37 and it looks like a good start.



That's about 43% (unrealized) profitability in four days.

Obviously there will be ups and downs, i.e. volatility, but I think I am not the only one who has realized that these types of companies have a lot of upside potential.

[Free Market Capitalist]

The Blockchain Group confirms the acquisition of 227 BTC for ~€21.2 million, the holding of a total of 847 BTC, and a ‘BTC Yield’ of 861.0% YTD.

It is the most profitable stock this year with a 815% return so far:



Let's comparte to Metaplanet, of which there was much talk about lately, even quoted by Saylor, with "just" 128% return:



Finally, let's compare to MSTR:

[takuma sato]

This is similar to penny stock investing. The smallest companies have a higher % of returning more profit for the simple reason that their base is lower, and so the multiplicator is naturally higher than a bigger company. More money is needed in order to move the stock price. The question here is, if XXI, Metaplanet, and all these new companies can keep up as their stack grows.
My thesis is very simple: The one that holds the most BTC will eventually become a powerhouse and win, and Strategy is winning. There is no realistic chance they can catch Strategy. So these smaller companies will also do good, since they are building BTC while others are still sleeping, but eventually their BTC yield will slow down, and eventually the market will realize that Strategy holding 500k+ BTC is a big deal and it's not priced in. The question is when. So the low mNAV on Strategy makes it a more bullish bet, including the increasingly short interest on the stock. This is how you get these crazy moves eventually when shorts are trapped during a big leg up on BTC price.

[Free Market Capitalist]

They are not going to stop.

France’s Blockchain Group to buy 590 Bitcoin after bond sale

When I bought the 100 shares they had just 620 bitcoins, at a 2mNAV or so. Last week they upped the holdings to 847 and now they plan to buy 590 more which are almost as many as they had in total when I bought. And at a higher price. So my 2mNAV has already been profitable for me in bitcoin terms, as I will soon have more exposure than if I had bought 137 euros in bitcoin, and the stock price has also grown more.

My thesis is very simple: The one that holds the most BTC will eventually become a powerhouse and win, and Strategy is winning. There is no realistic chance they can catch Strategy. So these smaller companies will also do good, since they are building BTC while others are still sleeping, but eventually their BTC yield will slow down, and eventually the market will realize that Strategy holding 500k+ BTC is a big deal and it's not priced in.

That's why my biggest position is in MSTR while I just took a small bet with this company of 100-odd Euros. It can be quite profitable in percentage returns but I think MSTR will remain the number 1.

[Free Market Capitalist]

When I bought the 100 shares they had just 620 bitcoins, at a 2mNAV or so. Last week they upped the holdings to 847 and now they plan to buy 590 more which are almost as many as they had in total when I bought.

So, they finally bought 624 bitcoin.

Blockchain Group Buys 624 Bitcoin For $68.6M, Aiming To Join Top Institutional Holders

The stock is on fire.



I've put 1 year range for the graph so the tendency since they adopted the strategy last November can be clearly seen.

My €137 initial investment is worth €410 in less than a month. Let's see how high this can go. When I bought the shares it was because I though they can easily make 100X and maybe 1,000X. I didn't put more money because I know there is an intrinsic relation between profitability and risk but I think it is quite likely this company is going to be highly profitable.

[Ambatman]

When I bought the 100 shares they had just 620 bitcoins, at a 2mNAV or so. Last week they upped the holdings to 847 and now they plan to buy 590 more which are almost as many as they had in total when I bought.

So, they finally bought 624 bitcoin.

Blockchain Group Buys 624 Bitcoin For $68.6M, Aiming To Join Top Institutional Holders

The stock is on fire.

A beautiful call on your buy. Planned on doing same when you first posted it but it escaped me until it flew.

Their average cost per Bitcoin is $102,507 with a profit of 2%.
Their current Buy was on a time when Bitcoin was higher, if only they picked some when it fell below $101K.

They are taking a bold step. And as they Say Fortune sometimes favours The Bold.


Any treasury that holds even after a big correction are going to be one of the giants in the treasury industry
Because of commitment and trust.

[Free Market Capitalist]

Their average cost per Bitcoin is $102,507 with a profit of 2%.
Their current Buy was on a time when Bitcoin was higher, if only they picked some when it fell below $101K.

They are taking a bold step. And as they Say Fortune sometimes favours The Bold.


Any treasury that holds even after a big correction are going to be one of the giants in the treasury industry
Because of commitment and trust.

Well, that 2% is in any case unrealized gains. What would have to be seen is how such a stock might behave in the face of a bear market that leaves its bitcoin reserves at unrealized losses relative to the average purchase price. MSTR went through such a winter without flinching but these small companies you can never know, surely many shorts would try to take advantage. As I said before, the higher the potential return the higher the risk as well. But my maximum risk is €137 while I can potentially earn 100 times that amount or more.