Breaking news: Over the past year, The Blockchain Group (TBG) has demonstrated the most notable performance on the Euronext Growth regulated market, experiencing a surge of 3,823%! The stock of the former Leadmedia, previously a digital marketing player, recently reached a 14-year high.

While valued at 8 million euros upon its recovery in July 2024, The Blockchain Group now boasts a valuation of 600 million euros. However, its turnover for the last year barely touched 14 million euros, with a net loss of 1.3 million euros.

A Bitcoin-Fueled Strategy

“The surge of the course seems to us, moreover, disconnected from the value of the assets.”

Analysis: As emerging from receivership, this small digital service company has been accumulating Bitcoins (BTC), acquired in recent months. Drawing inspiration from the American Microstrategy, this strategy has seemingly paid off in the stock market. however, by tying its fate to the volatile cryptocurrency, the company faces considerable risk.

The stock’s rise appears disconnected from the underlying asset value. TBG’s market capitalization is more than double the combined value of its 1,653 bitcoins and the funds raised as the beginning of the year.

Furthermore, the potential for further expansion is significant: the general assembly on June 10 authorized the possibility of raising over 10 billion euros in additional capital.

Investment Advice

• Sell. [ALTBG] Objective: 2,50 €.
• Profile: speculative.
• Next meeting: Semi-annual results,date not communicated.