Samara Asset Group To Raise €30m Bond, Targets 1,000 BTC By End Of 2024

Samara Asset Group, a German-listed digital asset firm, plans to issue a €30 million ($33 million) bond aimed at expanding its Bitcoin reserves and investing in disruptive technologies. According to an official statement on October 14, the bond issuance is being organized in collaboration with Pareto Securities, which will arrange a series of investor meetings. The proceeds from the bond will be used to strengthen Samara’s core holdings in Bitcoin, which serves as its primary treasury asset, and to fund investments in emerging tech-focused funds.

Samara was co-founded by Mike Novogratz, Christian Angermayer, and Apeiron Investment Group in 2018, and operates out of Malta. The firm is listed on several German exchanges, including Xetra, Börse Düsseldorf, Gettex, and Tradegate. The German-listed firm invests in emerging asset managers and builders in the blockchain space, for decentralizing and democratizing finance.

Samara has received strong positive sentiment after announcing its €30 million bond plan. The company’s stock price jumped by more than 15%, rising from €2.04 to a peak of €2.40, showing investor confidence in Samara’s strategy to expand its Bitcoin holdings and invest in blockchain and disruptive technologies.

Patrick Lowry, Samara’s CEO, has stated that the bond issuance will not only strengthen the company’s financial standing and enable them to expand their Bitcoin holdings while driving innovation through investments in emerging technologies. “The proceeds will allow Samara to further expand and solidify its already robust balance sheet as we diversify into new emerging technologies through new fund investments. With Bitcoin as our primary treasury reserve asset, we also enhance our liquidity position with bond proceeds.”

Lowry said that the firm has been holding Bitcoin for years and is now taking steps to expand its Bitcoin treasury. He also shared his ambitions to grow the company’s Bitcoin holdings to match those of Michael Saylor, CEO of MicroStrategy, a leading corporate Bitcoin holder. Microstrategy holds 252,220 BTC as of today, according to BitcoinTreasuries.

“Not sure it’s possible, but it’d be a dream to stack as much as Michael Saylor,” Lowry said in an X post.  The proceeds from €30 million bond will also be used to invest heavily in blockchain and decentralized finance (DeFi) technologies, the firm said. This strategic move aims to foster innovation within the financial sector, leveraging disruptive technologies to drive the future of digital finance.

One of the portfolio companies of Samara’s AG, NYDIG, has 49.2% YTD returns from bitcoin, more than any other asset, the firm said in an X post. This strong performance is one of the key reasons why Bitcoin is positioned as the core asset in Samara’s investment strategy.

The approval of Bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC) on January 10, 2024, has significantly boosted institutional interest in Bitcoin, fueling a surge in corporate acquisitions of the cryptocurrency. Institutions increasingly view Bitcoin as a reliable digital asset with clear regulatory backing, driving further adoption.

This month alone, several prominent players have added their Bitcoin reserves. Metaplanet, a leading investment firm in Japan, acquired over 215 BTC at an average price of $61,904 per Bitcoin. Moreover, Mike Novogratz, co-founder of Samara Asset Group and CEO of Galaxy Digital, added 500 BTC to Galaxy’s holdings since Oct. 7, according to blockchain data firm Arkham Intelligence.

Samara Asset Group is aligning itself with this broader institutional trend. The firm currently holds 421 BTC and aims to increase its holdings to 1,000 BTC by the end of the year.