Key Takeaways:
- Satsuma Technology raised $218M in an oversubscribed convertible note round backed by ParaFi, Kraken, Pantera, and others.
- Over $96M was contributed in Bitcoin, with 1,097 BTC accepted, signaling strong investor belief in Satsuma’s BTC treasury strategy.
- Stock dropped 25% on the London Stock Exchange post-announcement, though investor confidence in long-term value remains high.
UK’s Leading Bitcoin Treasury Firm Sees Strong Institutional Backing
London-based Satsuma Technology has completed a convertible note fundraising round worth £163.6 million ($217.6 million) which is the biggest for a bitcoin treasury firm listed in the UK. The round, led by ParaFi Capital, also saw participation from Pantera Capital, Kraken, DCG, and Arrington Capital, amongst other major institutional investors.
Instead of cash, more than 1,097 BTC (valued at about $96.9 million) was accepted and this was due to many investors opting to contribute in crypto. Satsuma decided that across a 24-hour subscription window, they would use a fixed daily BTC rate to determine bitcoin allocations—thus expressing their strong trust in their Bitcoin-native treasury strategy.
The convertible loan stocks will be exchanged for ordinary shares after gaining the approval of the shareholders and going through the regulatory review process. An application for authorization has already been lodged with the UK’s Financial Conduct Authority (FCA).
Decentralized AI and Bitcoin at the Core of Satsuma’s Vision
Satsuma, originally named Streaks AI and Tao Alpha, has successfully established itself as a player in the decentralized AI and crypto treasury management sectors. Apart from increasing BTC reserves, the company creates profit-making AI agents for Bittensor and invests in new AI subnets.
The London Stock Exchange witnessed a disappointing 25% drop in Satsuma’s stock price (SATS) following the capital-raising announcement. More than 50% of Satsuma’s stock value had been decimated since the June announcementq that a Bitcoin treasury policy would be adopted. The current trading price hovers around £3.70.
Reflecting on the oversubscribed round, CEO Henry K. Elder saw it as a “landmark validation” for Satsuma’s strategy where he stresses the efficacy of interfacing Bitcoin-native treasuries with decentralized AI.
Summary:
Satsuma’s $218 million raise marks a pivotal moment in the evolution of crypto-native treasuries in the UK. With over $96 million received in Bitcoin and major backing from top firms, the company is betting on decentralized finance and AI as key drivers of future corporate value. Investor confidence remains high in Satsuma’s long-term vision amidst stock market volatility.
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