Satsuma Technology Raises £163.6M to Take Bitcoin Position

UK-based decentralized AI and Bitcoin treasury firm, Satsuma Technology, has raised £163.6 million, worth $217.6 million, through a secured convertible note round.

The fundraising effort was led by ParaFi Capital and backed by several major crypto and institutional investors.

This event has become one of the largest of its kind in the UK.

This marks a significant development in the country’s digital asset sector, combining artificial intelligence (AI) with Bitcoin-based capital strategy.

Fundraising Exceeds Expectations, Attracts Strong Backing Satsuma’s secured convertible note round began on June 24 and ended on July 28. It brought in support from both global crypto funds and London-based institutional equity investors.

The investors include Pantera Capital, Digital Currency Group (DCG), Kraken, Arrington Capital, BTC Opportunity Fund, and Borderless Capital.

In total, the raise brought in £163.6 million, far surpassing the original goal of £100 million.

The loan notes will be converted into ordinary shares for £0.01 each.

However, this will only happen after shareholders approve the plan and the Financial Conduct Authority (FCA) approves the prospectus.

A general meeting will be scheduled soon in this regard.

Satsuma said that the most notable aspect of this round was that many investors chose to subscribe using Bitcoin .

In total, the company accepted 1,097.29 BTC, worth £96.9 million, instead of cash.

This marks the first-ever Bitcoin-based subscription of this kind in London.

Satsuma plans to use the funds to expand its operations, retain at least three months’ working capital in cash.

Also, it plans to strengthen its Bitcoin reserves through its Singapore subsidiary, Satsuma Pte.

Rising Interest in UK Bitcoin Treasuries While U.S.-based companies still lead in corporate Bitcoin holdings, the UK is catching up.

Satsuma previously bought 28.56 BTC in July after raising £5 million in seed funding in June.

While Satsuma plans to allocate up to two-thirds of its reserves to Bitcoin, it is not the leading Bitcoin holder.

That title goes to Smarter Web Company, which holds 2,050 BTC, worth $235 million .

The Aquis exchange-listed firm also raised $21 million in a Bitcoin-denominated bond round this week.

Other UK-based public firms like Phoenix Digital Assets, Coinsilium, and CoinShares also hold notable Bitcoin reserves.

Market Response and Stock Movement Last month, some investors raised concerns over UTXO Management’s support for both The Smarter Web Company and Satsuma.

Some viewed this as a conflict, believing UTXO should back only one Bitcoin treasury firm per region.

Despite the online debate, Satsuma’s fundraising success suggests investor confidence remains high.

Despite the fundraising success, Satsuma’s stock (SATS) dropped over 25% in early trading following the announcement.

The share price is currently around £3.70, reflecting a fall of more than 50% since the company introduced its Bitcoin treasury policy in June.

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