Bitcoin News Today: Satsuma Technology raises £163.6M in Bitcoin-backed loan note offering

Satsuma Technology, a UK-based firm integrating decentralized AI with a Bitcoin treasury strategy, has successfully raised £163.6 million through a secured convertible loan note offering, which closed on July 28, 2025. The fundraising exceeded its initial target by 63.7%, reflecting robust investor interest in the company's strategic vision and its focus on building a Bitcoin-centric capital structure [2]. At current exchange rates, the gross proceeds amount to approximately $217.6 million [1].

One of the most notable aspects of the offering was the option for investors to contribute in Bitcoin. The firm received 1,097.29 BTC, valued at £96.875 million, making it the first instance of a Bitcoin-based subscription in London [4]. This approach underscores Satsuma’s commitment to embedding Bitcoin into its treasury and operational models, positioning it as a bridge between traditional finance and the decentralized economy [3].

The round was led by ParaFi Capital and supported by prominent institutional and crypto investors, including Pantera Capital, Digital Currency Group, Kraken, Arrington Capital, and the BTC Opportunity Fund [5]. This level of participation signals a broader shift in how institutional investors view Bitcoin, not just as a speculative asset but as a strategic component of corporate capital structures [2].

Satsuma plans to use the raised funds to expand its decentralized AI initiatives and bolster its Bitcoin reserves, with a particular emphasis on long-term value creation through exposure to Bitcoin’s liquidity and market dynamics [3]. The company also intends to maintain at least three months of working capital in cash and will channel additional reserves through its Singapore subsidiary, Satsuma Pte [4].

The convertible notes will be converted into ordinary shares at a price of £0.01 per share, subject to shareholder approval and regulatory clearance from the Financial Conduct Authority (FCA) [4]. Shareholders are expected to vote on the conversion in a scheduled general meeting.

Despite the strong fundraising performance, Satsuma’s stock (SATS) dropped more than 25% in early trading following the announcement. The share price has since fallen over 50% since the firm unveiled its Bitcoin treasury strategy in June [4]. This market response has sparked discussions around investor sentiment and perceptions of risk, particularly as Satsuma continues to allocate a significant portion of its reserves to Bitcoin.

The UK’s corporate Bitcoin landscape is evolving, with Satsuma joining a growing list of firms, such as Smarter Web Company and Aquis-listed Phoenix Digital Assets, in building substantial Bitcoin positions. While Smarter Web Company holds a larger Bitcoin reserve of 2,050 BTC, worth $235 million, Satsuma’s innovative fundraising approach highlights the increasing institutional adoption of digital assets [4].

The successful completion of the offering demonstrates the maturing acceptance of cryptocurrencies in traditional financing mechanisms, particularly within high-growth, technology-driven sectors. As more firms explore Bitcoin-backed capital structures, its role in corporate finance is expected to expand, reinforcing its position as a digital asset with institutional-grade utility [5].

Source:

[1] Bitcoin News Today: Satsuma Technology raises £163.6M ... (https://www.ainvest.com/news/bitcoin-news-today-satsuma-technology-raises-163-6m-bitcoin-backed-convertible-note-oversubscribed-63-7-2508/)

[2] Satsuma Technology Raises £163.6M to Take Bitcoin Position (https://thecoinrise.com/satsuma-technology-raises-163-6m-to-take-bitcoin-position/)

[3] Satsuma Tech PLC - Second CLN Raises Gross Proceeds ... (https://www.research-tree.com/newsfeed/Article/satsuma-tech-plc-second-cln-raises-gross-proceeds-of-163-6m-2948441)

[4] Satsuma Technology raises £163.6m in convertible loan ... (https://www.investing.com/news/company-news/satsuma-technology-raises-1636m-in-convertible-loan-note-offering-93CH-4171962)

[5] NLNico - X (https://x.com/btcNLNico/status/1952993847602032818)