Satsuma Technology has raised $218 million, with over half funded in Bitcoin, marking the UK’s first major institutional crypto treasury commitment.
Key Takeaways
- 1Satsuma Technology secured $217.6 million, including $125 million settled in Bitcoin, the largest crypto-linked raise by a UK-listed firm.
- 2Backed by major players like Pantera Capital, Kraken, and London-based institutions managing over £300 billion in assets.
- 3Investors will receive equity at $0.013 per share after shareholder and regulatory approval.
- 4The firm aims to combine Bitcoin treasury strategy with decentralized AI infrastructure, making it a unique player in the digital asset space.
What Happened?
Satsuma Technology, a London-listed company formerly known as Tao Alpha, completed an oversubscribed $218 million convertible note raise. Significantly, $125 million of that total was settled directly in Bitcoin, representing the first institutional-scale BTC subscription for a UK public firm. This bold move positions Satsuma as a pioneering force in merging digital assets with traditional corporate finance in the UK.
London’s largest Bitcoin treasury raise to date. Massively oversubscribed.
,Satsuma Technology Plc (SATS.L) (@Satsuma_UK) August 6, 2025
£163.66m secured ,fuelling decentralised finance AI infrastructure and long-term Bitcoin accumulation.
Listed on the Main Market (@LSEplc ). Built for institutions.
Read the full announcement:…
Bitcoin-Funded Raise Breaks New Ground
The raise concluded on July 28 and drew strong backing from both crypto-native and traditional institutional investors. According to Satsuma, the round exceeded its $129 million target by over 63%, with total commitments reaching £163.6 million ($217.6 million).
- 1,097.29 BTC, valued at approximately $125 million, was accepted instead of cash
- Participating firms include Pantera Capital, DCG, Kraken, Arrington Capital, Blockchain.com, and several top UK equity funds
- Notes will convert to equity at $0.013 per share, pending regulatory and shareholder approvals
This marks a significant milestone for the UK crypto ecosystem, making Satsuma the first company to receive such a large-scale BTC-based investment. The company is planning to convert its loan notes into ordinary shares priced at £0.01 each, subject to a formal prospectus with the UK Financial Conduct Authority and a general meeting.
Bitcoin as a Strategic Corporate Asset
Satsuma’s CEO, Henry K. Elder, described the raise as a “landmark validation” of the company’s thesis that blending a Bitcoin-native balance sheet with decentralized AI represents the next wave of corporate innovation. The company plans to split the proceeds between operational expansion, AI infrastructure development, and boosting its Bitcoin reserves.
Satsuma’s Bitcoin holdings now total 1,126 BTC, acquired at an average price of $115,149, according to BitcoinTreasuries.NET. Although this currently reflects a marginal unrealized loss, the firm is undeterred, following a long-term accumulation strategy similar to companies like Strategy (formerly MicroStrategy).
Investor Buzz, Market Reaction, and Industry Context
Despite the funding success, Satsuma’s stock fell sharply. As of August 6, shares were trading at 3.77 GBX, down 1.33 points or 26.15% for the day. The stock is down over 50% since the company announced its Bitcoin treasury strategy in June.
This volatility hasn’t stopped broader interest in crypto treasury strategies:
- UK competitor The Smarter Web Company raised $21 million via a Bitcoin-backed bond and now holds 2,050 BTC (~$235 million)
- Other UK Bitcoin holders include Phoenix Digital Assets (247 BTC) and Coinsilium (124 BTC)
The broader trend is clear: more firms are recognizing Bitcoin as a strategic asset, not just a speculative investment. Over $7.8 billion in crypto treasury commitments were announced globally last week, with Bitcoin and Ethereum as the leading choices.
CoinLaw’s Takeaway
I see this as a watershed moment for the UK crypto scene. Satsuma’s bold use of Bitcoin in a major institutional raise could open doors for more public companies to follow suit. Sure, the stock drop might spook some retail investors, but from where I sit, the long game looks strong. Institutional money backing Bitcoin in this way sends a loud signal. And with Satsuma building in decentralized AI too, they’re not just stacking sats, they’re building something much bigger.
