Imagine sitting down for a cup of tea, and someone tells you they just raised a quarter of a billion dollars. Now imagine they did it mostly with Bitcoin. That’s the story unfolding across the pond, where Satsuma Technology, a UK company with a foot in both decentralized AI and Bitcoin, just pulled off a rather impressive funding round.
- Satsuma Technology, a UK company, secured a substantial £163.6 million in funding, with a significant portion raised using Bitcoin. This marks a notable achievement in the intersection of decentralized AI and Bitcoin.
- The funding round saw participation from prominent crypto investment firms, including Pantera Capital and DCG, demonstrating strong investor confidence in Satsuma’s vision. The fundraising process was remarkably swift, concluding within a month.
- Satsuma plans to allocate a portion of the fresh capital to expand operations and invest in its Bitcoin treasury, held by its Singapore subsidiary, Satsuma Pte. This strategy underscores their commitment to Bitcoin as a core asset.
This isn’t your everyday venture capital deal. Satsuma, a firm listed in the UK, announced it secured a hefty £163.6 million, which translates to about $217.6 million. This money comes from a secured convertible note round, led by ParaFi Capital. It’s a significant sum, especially when you consider it blew past their initial £100 million target by a cool 63.7 percent.
The list of backers reads like a who’s who of the crypto investment scene. Pantera Capital, DCG, Kraken, Arrington Capital, BTC Opportunity Fund, and Borderless Capital all chipped in. A few institutional equity funds from London joined the party too. The fundraising began in late June and wrapped up by late July, a swift turnaround for such a large amount.
So, what exactly are these “convertible notes”? Think of them as a loan that can turn into company shares later. In Satsuma’s case, these notes will convert into ordinary shares at a fixed price of £0.01 each. This will happen once shareholders give their nod and a formal prospectus is published. The company plans a general meeting soon, and a draft prospectus is already with the Financial Conduct Authority.
Satsuma has clear plans for this fresh capital. A portion will go towards expanding operations. They also want to keep at least three months of working capital in cash, a sensible move for any business. The rest, and this is where it gets interesting, will be allocated to their Bitcoin treasury, held by their Singapore subsidiary, Satsuma Pte.
Now, for a bit of a head-scratcher. Despite this big funding news, Satsuma’s stock (ticker: SATS) took a tumble. It fell over 25 percent in early trading the day the news broke. The shares have actually lost more than half their value since June, when the firm first announced its Bitcoin treasury policy. Currently, a share sits around £3.70. It makes you wonder, doesn’t it, about market reactions?
Beyond the treasury, what does Satsuma Technology actually do? Well, it used to be known as Streaks AI, then Tao Alpha. Today, Satsuma builds infrastructure and AI agents for Bittensor, a decentralized AI network. They also put money into promising subnets within that ecosystem. It’s a blend of cutting-edge AI and the foundational strength of Bitcoin.
Bitcoin Settlement: A New Chapter
Here’s where Satsuma truly stands out. A good number of investors in this round chose to pay with Bitcoin itself. Satsuma accepted a staggering 1,097.29 BTC. That’s roughly £96,875,000 worth of Bitcoin, taken in place of cash. The company board gave its blessing to this Bitcoin settlement. It aligns perfectly with their treasury strategy, they said. The Bitcoin amount was set using a fixed daily rate over a 24-hour subscription window.
This wasn’t Satsuma’s first foray into Bitcoin acquisition. They had already bought 28.56 BTC for $3.4 million in mid-July. That purchase followed a £5 million ($6.6 million) seed round back in June. It shows a consistent belief in Bitcoin as a core asset.
Henry K. Elder, Satsuma Technology’s CEO, had some strong words about this milestone. He was previously a Principal at David Bailey’s UTXO Management. Elder called the moment a “landmark validation” of their core belief. He sees fusing a Bitcoin-native treasury with decentralized AI as a “paradigm shift” in how companies create value. It’s a bold statement, but the numbers back him up.
Elder noted that the oversubscribed target was a “profound vote of confidence.” He pointed out it’s the largest fundraise for a London company with a Bitcoin treasury by a significant margin. He also highlighted the fact that many investors chose to subscribe in Bitcoin. He called it the “first-ever bitcoin subscription in London.” This, he feels, speaks volumes about trust in their ability to innovate.
The CEO concluded by saying Satsuma is now “fully equipped, deeply motivated.” He is more convinced than ever that London is the ideal market to build a global leader in this new category. It’s a clear vision for a company planting its flag firmly in both the AI and Bitcoin camps.
The UK’s Growing Bitcoin Treasury Scene
When we talk about companies holding Bitcoin, US firms still dominate. Michael Saylor’s MicroStrategy comes to mind immediately. But the UK is quietly building its own roster of Bitcoin treasury companies. Satsuma Technology is already listed on the London Stock Exchange, the UK’s largest venue. They plan to put up to two-thirds of their reserves into Bitcoin.
However, Satsuma isn’t the only player. The Smarter Web Company, listed on Aquis, currently leads the UK public Bitcoin treasury race. They hold a substantial 2,050 BTC, valued at about $235 million. Aquis is a UK exchange for smaller, growing firms. It’s a lower-cost option compared to the LSE, though it’s smaller and less active.
The Smarter Web Company also made news recently. On the same day Satsuma announced its raise, The Smarter Web Company said it had raised another $21 million. This was also through a Bitcoin-denominated convertible bond. It seems the trend of using Bitcoin for corporate finance is gaining steam in London.
This growth isn’t without its drama, though. Last month, a bit of a stir happened in The Smarter Web Company’s investor community. There was concern on X (formerly Twitter) about UTXO’s support for Satsuma. Some critics saw this as “market cannibalism.” They felt it went against the community’s idea that UTXO would back only one Bitcoin treasury leader per market. It’s a small world, isn’t it, this crypto space?
Beyond these two, other UK public companies also hold Bitcoin. Phoenix Digital Assets has 247 BTC, worth around $28 million. Coinsilium holds 124 BTC, valued at about $14 million. And crypto asset manager CoinShares, based in Jersey, a British Crown Dependency, holds 236 BTC, which is about $27 million. The list is growing, showing a quiet but steady shift in corporate finance.
Satsuma’s bold move to accept Bitcoin directly from investors could set a new precedent. It signals a strong belief in the digital asset as a form of capital, not just a speculative holding. This could influence how other companies approach fundraising and treasury management in the years ahead.