Bitcoin News Today:

Rectitude Holdings Ltd. (NASDAQ: RECT) has announced the initiation of a Bitcoin treasury strategy, committing to a Standby Equity Purchase Agreement (SEPA) with Constantinople Limited and other investors. The agreement allows the company the option to issue up to $32.625 million in ordinary shares to the investors, with the proceeds primarily earmarked for the purchase of Bitcoin and general corporate purposes. The SEPA, executed with Tian Jia and former Tron co-founder Chen Zhiqiang as lead investors, provides Rectitude with the flexibility to issue shares at a 2.5% discount to the lowest volume-weighted average price during a three-day period following an advance notice. The company emphasized its discretion in determining the timing and quantity of share issuance, with no mandatory minimum drawdowns or penalties for unused commitments.

Rectitude Holdings, founded in 1997 and primarily engaged in the provision of safety equipment across Singapore and Southeast Asia, sees Bitcoin as a store of value and a hedge against inflation. The company’s strategy involves acquiring and long-term holding of Bitcoin, potentially through a mix of operational cash flows and capital-raising activities. It does not intend to acquire other cryptocurrencies and does not currently employ hedging strategies for its Bitcoin holdings, though such measures may be considered in the future. The decision reflects Rectitude’s alignment with the broader trend of corporate entities adopting Bitcoin as part of their treasury management strategies. The company’s CEO, Jian Zhang, underscored that this move is intended to safeguard shareholder value and position the firm for the digital economy, while also allowing for flexibility in future capital allocation.

The recent move by Rectitude Holdings aligns with broader trends in the corporate adoption of Bitcoin. According to on-chain data from CryptoQuant, Bitcoin treasury holdings across institutions have reached 840,000 BTC this year, with firms such as Strategy, Marathon Digital, and Metaplanet playing prominent roles. However, the average purchase size of Bitcoin by these treasury companies has decreased by 86% compared to early 2025, suggesting caution and liquidity constraints among some participants. Despite this, the number of new Bitcoin treasury companies has grown significantly, with 28 new entrants forming in July and August alone, collectively adding over 140,000 BTC to their holdings. This growth indicates a maturing market and expanding institutional interest, although it raises questions about the sustainability of price momentum without large-scale purchases.

Meanwhile, Asia is becoming a focal point for digital asset treasury developments. Sora Ventures, a Taiwan-based firm, has launched a $1 billion fund to support regional treasury initiatives, signaling a shift in the geographic balance of corporate Bitcoin adoption. Additionally, BlackRock’s recent acquisition of 290 million BTC has highlighted the increasing involvement of institutional investors in the cryptocurrency space. These developments reinforce the notion that Bitcoin is increasingly being viewed as a legitimate component of corporate financial strategy, with firms leveraging its perceived stability and scarcity in uncertain economic climates.

As corporate Bitcoin holdings now exceed 1 million BTC, companies are increasingly integrating the cryptocurrency into their balance sheets for both strategic and financial purposes. Rectitude’s initiative reflects not only its belief in Bitcoin as a digital store of value but also its intent to manage capital efficiently in a rapidly evolving market. The firm’s approach—leveraging the SEPA to provide a low-cost and flexible capital-raising mechanism—highlights the growing sophistication of corporate treasury strategies in the crypto space. By retaining control over its capital allocation decisions, Rectitude aims to balance long-term value preservation with the ability to respond to market dynamics, a strategy that is gaining traction among firms across various industries.

Source: [1] Rectitude Holdings Announces $32.6 Million Standby Equity Purchase Agreement to Launch a Bitcoin Treasury Strategy (https://markets.businessinsider.com/news/stocks/rectitude-holdings-announces-32-6-million-standby-equity-purchase-agreement-to-launch-a-bitcoin-treasury-strategy-1035123465) [2] Asia Morning Briefing: BTC Treasury Demand Is Weakening (https://www.coindesk.com/markets/2025/09/08/asia-morning-briefing-btc-treasury-demand-is-weakening-cryptoquant-cautions) [3] Over 1 Million In Bitcoin Locked In Treasuries As Corporate Demand Grows (https://www.mitrade.com/insights/news/live-news/article-3-1102381-20250908)