Innovative Bitcoin Integration by Satsuma Technology
Introduction to the New Bitcoin Player
In an exciting development for the world of institutional Bitcoin adoption, a fresh player has emerged from outside the familiar tech hubs. Satsuma Technology, formerly known as TAO Alpha and listed in London, has achieved a significant milestone with a groundbreaking funding round. The company successfully completed a substantial £163.6 million ($218 million) convertible note financing round, with an intriguing twist—nearly 60% was transacted in Bitcoin (BTC).
Satsuma’s Bitcoin-Powered Funding
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On July 28, Satsuma Technology marked a historic event as it became the first publicly listed company in London to secure a large-scale capital raise denominated in Bitcoin. Following this strategic move, Satsuma’s Bitcoin holdings increased to 1,126 BTC, valued at over $128 million at current market rates. These assets are managed by Satsuma Pte, a subsidiary registered in Singapore.
Data from BitcoinTreasuries.NET reveals that Satsuma is now the second-largest corporate Bitcoin holder in the UK, following The Smarter Web Company. The company’s BTC acquisitions were made at an average cost basis of $115,149. CEO Henry K. Elder emphasized that the funds will be directed towards expanding the company’s decentralized AI infrastructure and enhancing its digital asset reserves. Additionally, Satsuma is committed to transparency and will provide regular reports on its Bitcoin holdings.
Following in the Footsteps of MicroStrategy
Satsuma’s Bitcoin strategy draws parallels with that of MicroStrategy, a prominent US-based intelligence and software firm. Under the guidance of co-founder Michael Saylor, MicroStrategy transformed itself into a quasi-Bitcoin ETF, beginning its Bitcoin journey in 2020 with the acquisition of 21,454 BTC valued at $250 million. Since then, the company has amassed over 628,791 BTC, totaling $33.139 billion in investment.
Satsuma, while at an early stage in its Bitcoin endeavors, has taken a distinct approach by accepting Bitcoin directly during the funding phase, unlike MicroStrategy’s post-raise conversion strategy. Typically, MicroStrategy raises capital through bond offerings or stock sales before investing in Bitcoin. Satsuma, in contrast, accepted Bitcoin upfront. The recent funding round, led by ParaFi Capital, garnered support from major crypto entities such as Pantera Capital, Digital Currency Group (DCG), and Kraken.com. It also attracted participation from leading UK equity market players managing assets worth £300 billion collectively.
Implications for the Future of Bitcoin Adoption
Satsuma’s bold move aligns with evolving regulatory sentiments in the UK, which are gradually becoming more favorable toward digital assets. If successful, this strategy could pave the way for other publicly traded companies in Europe and beyond to incorporate Bitcoin into their financial strategies. Currently, publicly listed companies in the UK hold 3,658 BTC, while private firms possess 88 BTC.
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