French company raises $16.5 million for Bitcoin strategy! What's this all about?
Hello everyone! I'm John, your blockchain guide.
Recently, you may have seen more and more words like "Bitcoin" and "cryptocurrency" in the news and on the Internet. Some of you may be thinking, "It seems like there are a lot of technical terms and it's difficult..." or "It doesn't really have anything to do with me."
However, these new technologies and forms of money are actually beginning to influence our future economy and society little by little. That's why it's so interesting to know their basic movements.
Today, from among all that news, I'd like to pick up on the news that a French company has raised a large amount of funding in connection with Bitcoin, and as always, I'd like to explain it in a way that is easy to understand even for beginners!
French company makes big investment in Bitcoin!
The main focus of this news is a company called The Blockchain Group (ALTBG), which is headquartered in France.
This company has recently raised approximately 970 million euros (roughly equivalent to16 billion yenWe were able to raise a huge amount of money (about 100,000 yen! That's a really huge amount of money!).
What kind of company is it? ~A group of blockchain technology professionals~
As you might guess from the name "The Blockchain Group," this companyBlockchain technology (a new database technology that allows information to be recorded very securely on the Internet and shared by all participants. Once recorded, information is extremely difficult to tamper with, making it like a "digital notary public" system)Specifically, we develop new services that utilize blockchain technology and provide assistance (called consulting) when other companies introduce blockchain technology. In other words, we are a group of blockchain professionals.
What did you raise the money for? ~Bitcoin in the company's "safe"~
The large amount of money raised this time will be used for a purpose called "Bitcoin Treasury Strategy."
You may think, "Financial strategy seems difficult..." but to put it simply,The company plans to hold and manage Bitcoin as part of its cash and assets.That's what I mean.
Ordinary companies hold profits and capital from their business in bank deposits (money issued by the government, such as Japanese yen or dollars, called legal tender), stocks, real estate, or sometimes even gold. In the same way, more and more companies around the world are thinking, "From now on, let's hold Bitcoin as one of our assets!"
There are a number of possible reasons for this, including the expectation that Bitcoin's value may increase in the future, its potential as a new means of storing value independent of traditional financial systems, and its convenience as a means of international remittances.
How did you raise the money? ~Investment as a sign of hope~
This approximately 16 billion yen in funding is"Stock (also called equity. A method of giving part of a company's ownership to investors and receiving funding in return)","Convertible bonds (a special type of bond that is issued as a corporate bond at first to lend money to a company, but can later be converted into shares of the company if certain conditions are met. Corporate bonds are like IOUs issued by companies when they borrow money)."This is how the funds were raised from investors. This means that the investors had high expectations for the future of The Blockchain Group and the Bitcoin strategy they were trying to implement, and they gave their money because they wanted to support the company and contribute to its growth.
Who's supporting it? ~Even big names in the Bitcoin world!~
And there are some particularly noteworthy big names participating in this round of funding!
- Adam Back:This person is a very famous cryptographer and engineer who invented the technology called "Hashcash" in the 1990s, which is connected to the idea of "Proof of Work" (a computational race to prove the correctness of a transaction), one of the core technologies for the functioning of Bitcoin. He is such a pioneer in this field that he was even cited in a paper by Satoshi Nakamoto, who is considered the creator of Bitcoin."A Bitcoin legend"I am the type of person who can say this.
- TOBAM:It is an independent asset management company based in Paris, France. It is known for its investment strategies using mathematical approaches, and is a group of financial professionals who also manages cryptocurrency investment funds.
- Ludovic Chechin-Laurans:This person is also participating in this fundraising as a private investor.
The inclusion of such industry heavyweights and specialist institutions on the list is an indication of how much attention and expectations the Bitcoin strategy being pursued by The Blockchain Group is receiving from experts.
What does this mean? Does it concern us?
Some people may think, "Oh, a French company is into Bitcoin. But I still don't get it..." It's true that our lives may not change drastically right away, but there is actually a hidden meaning behind the accumulation of news like this.
- This may be evidence that Bitcoin is becoming accepted by society:In the past, many people had the image that "Bitcoin = something I don't really understand, it's a bit suspicious." However, the fact that an ordinary company, especially one that specializes in blockchain technology, is pursuing a strategy to hold Bitcoin as its important asset shows that Bitcoin is graduallyIt is becoming more widely recognized in society and is beginning to be seen as a trusted asset class.It might be a sign of that.
- Potential for new technologies to drive the economy:Blockchain technology and its representative application, Bitcoin, are said to have the potential to dramatically change the future of financial systems and business.Hopes for the futureThis is an indication of...
- Maybe it's a story from a faraway country?If this trend picks up steam around the world, it could have an impact on the services we use, the way we pay, and even the way we work in the future. For example, we could see the emergence of safer international remittance services with lower fees, and an increase in jobs that involve handling new types of digital assets.
- More financial options in the future?Currently, currency issued by countries (legal tender) such as the Japanese yen and the dollar is at the center of our lives, but as digital technology evolves, cryptocurrencies such as Bitcoin may become more familiar as a convenient option in certain situations.
Of course, crypto assets, including Bitcoin, are characterized by extremely large price fluctuations (the value can go up or down by a large amount). Therefore, if you are considering investing, it is very important to fully understand the risks and make a careful decision. However, knowing about these new global movements and technological trends will surely be useful in understanding the rapidly changing modern society. Isn't that exciting?
John's words
I personally found this news very interesting! In particular, it has a big impact that a leading figure like Adam Back, who has supported the Bitcoin industry since its early days, has appeared to provide concrete support for a company's Bitcoin strategy. I feel that this is evidence that Bitcoin and blockchain technology are not just a passing fad, but are steadily taking root as social infrastructure. Of course, it is still a developing technology and there are many challenges, but the challenges of these companies and investors may gradually shape the new economy of the future. I will continue to keep an eye on developments in this field!
This article is based on the following original articles and is summarized from the author's perspective:
France's The Blockchain Group Secures €9.7 Million More For
Its Bitcoin Treasury Strategy