Bitcoin News Today: Rectitude leverages SEPA to fuel Bitcoin treasury vision

Generated by AI AgentCoin World
Monday, Sep 8, 2025 8:27 am ET2min read
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Aime RobotAime Summary

- Rectitude Holdings secures $32.6M SEPA with Constantinople to fund Bitcoin treasury strategy, enabling share issuance for BTC purchases.

- Agreement offers 2.5% discount on share price and flexible capital access without mandatory drawdowns, aligning with market conditions.

- Company emphasizes Bitcoin as inflation hedge and long-term store of value, with no hedging plans or crypto diversification targets.

- CEO highlights strategic benefits of low-cost funding for shareholder value, amid broader trends of institutional Bitcoin adoption in Asia.

- Market data shows slowing treasury purchases but continued growth in new entrants, with Asia emerging as a key digital asset hub.

Rectitude Holdings Ltd. (Nasdaq: RECT), a Singapore-based safety equipment and industrial products provider, has entered into a $32.6 million Standby Equity Purchase Agreement (SEPA) with Constantinople Limited, a British Virgin Islands-based firm. The agreement, which allows the company to issue up to $32,625,000 in ordinary shares at its discretion, is part of Rectitude’s newly launched BitcoinBTC-- treasury strategyMSTR--. The proceeds from the equity offering will be primarily used to purchase Bitcoin, with the remainder allocated for general corporate purposes [3].

The SEPA includes a 2.5% discount on the lowest volume-weighted average price of Rectitude’s shares during a three-day period preceding each transaction. The company will determine the timing and number of shares to be issued, with no mandatory minimum drawdowns or penalties for unused commitments. This flexibility enables RectitudeRECT-- to optimize its capital-raising efforts while managing its Bitcoin purchases in line with market conditions [3].

Rectitude’s Bitcoin strategy is centered on long-term holding of the cryptocurrency as part of its broader treasury management approach. The company has not set a specific target for Bitcoin holdings but will continue to evaluate market conditions to determine the timing and scale of its purchases. In addition, Rectitude may sell Bitcoin for corporate purposes, tax planning, or to secure additional capital. The company does not currently intend to acquire other cryptocurrencies and has no hedging program in place for its Bitcoin holdings [3].

Jian Zhang, Chairman, CEO, and Executive Director of Rectitude, emphasized that the SEPA provides a low-cost, capital-efficient mechanism to support the company’s Bitcoin treasury strategy. By leveraging this flexible funding source, Rectitude aims to safeguard shareholder value and position itself for a digital future. The company views Bitcoin as a store of value and an inflation hedge, particularly in times of global economic uncertainty. Zhang highlighted the growing institutional acceptance of Bitcoin as a key factor in its strategic decision [3].

The announcement aligns with broader trends in the corporate Bitcoin adoption landscape. As of late 2025, companies collectively hold over 1 million Bitcoin, with firms like Metaplanet, Semler ScientificSMLR--, and Strategy leading the charge. However, recent on-chain data suggests that the pace of Bitcoin purchases by treasury companies has slowed. For example, Strategy’s average purchase size in August dropped to 1,200 BTC, a significant decline from its 2025 peak of 14,000 BTC. This trend, observed across both Strategy and other firms, indicates a shift toward smaller, more cautious transactions [6].

Despite these developments, new entrants continue to join the Bitcoin treasury sector. In July and August 2025, 28 new treasury companies were formed, collectively adding more than 140,000 BTC to their holdings. Asia, in particular, is emerging as a key region for digital asset treasuries, with initiatives such as Sora Ventures’ $1 billion fund aiming to support multiple regional firms. These developments suggest that the Bitcoin treasury model remains attractive to institutional investors seeking to diversify their portfolios and hedge against macroeconomic volatility [7].

Source:

[1] title1 (https://ir.rectitude.com.sg)

[2] title2 (https://www.nasdaq.com/market-activity/stocks/rect)

[3] title3 (https://www.globenewswire.com/news-release/2025/09/08/3146065/0/en/Rectitude-Holdings-Announces-32-6-Million-Standby-Equity-Purchase-Agreement-to-Launch-a-Bitcoin-Treasury-Strategy.html)

[4] title4 (https://www.coinbaseCOIN--.com/price/tron)

[5] title5 (https://srmentertainment.com/)

[6] title6 (https://cointelegraph.com/news/crypto-treasuries-bumpy-ride-premium-nav-narrow-nydig)

[7] title7 (https://www.coindesk.com/markets/2025/09/08/asia-morning-briefing-btc-treasury-demand-is-weakening-cryptoquant-cautions)

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