UK-based bitcoin treasury firm Satsuma raises $218 million in oversubscribed convertible note round backed by ParaFi, Kraken and others
UK-listed bitcoin treasury company and decentralized AI firm Satsuma Technology announced Wednesday it has raised gross proceeds of £163.6 million ($217.6 million) from a secured convertible note round led by ParaFi Capital.Pantera Capital, DCG, Kraken, Arrington Capital, BTC Opportunity Fund, and Borderless Capital also participated, among others, including several institutional equity investment funds based in London, according to a statement. Initiated on June 24, the fundraising closed on July 28, 63.7% above the minimum £100 million target.The loan notes will convert into ordinary shares at £0.01 each, once shareholders approve the required resolutions and a prospectus is published. A general meeting will be called soon, and a draft prospectus has been submitted to the Financial Conduct Authority.Satsuma said it will use the funds to expand operations, retain at least three months' working capital in cash, and allocate the rest to its bitcoin treasury held by its Singapore subsidiary, Satsuma Pte.The company's stock (ticker: SATS) fell over 25% in early trading on Wednesday following the news, according to TradingView. Satsuma shares have now lost over 50% since the firm announced the adoption of a bitcoin treasury policy in June and are currently trading for £3.70.SATS/USD price chart. Image: .Previously known as Streaks AI, then Tao Alpha, Satsuma Technology also builds infrastructure and revenue-generating AI agents for Bittensor, a decentralized AI network, while investing in promising subnets across the ecosystem, according to its website.Bitcoin settlementA significant number of the investors chose to subscribe using bitcoin, the firm said, with Satsuma accepting 1,097.29 BTC in lieu of £96,875,000 in cash. The Satsuma board said it approved the bitcoin settlement to support its treasury strategy, using a fixed daily rate over a 24-hour subscription window to determine the BTC amount.Satsuma previously acquired 28.56 BTC for $3.4 million on July 13, following a £5 million ($6.6 million) seed round in June."This moment represents a landmark validation of our core belief: that fusing a Bitcoin-native treasury with decentralised AI is a paradigm shift in corporate value creation," Satsuma Technology CEO and former Principal at David Bailey's UTXO Management, Henry K. Elder, said. "To have our initial target so significantly oversubscribed is a profound vote of confidence, resulting in the largest fundraise for a London company with a bitcoin treasury by a significant margin.""The fact that many chose to subscribe in the first-ever bitcoin subscription in London speaks to their trust in our ability to innovate and execute," Elder added. "We are now fully equipped, deeply motivated, and more convinced than ever that London is the preeminent market from which to execute on our vision and build a global leader that will define this new category."UK bitcoin treasury firms on the riseU.S. firms, led by Michael Saylor's Strategy, continue to dominate corporate bitcoin acquisitions. However, the number of BTC treasury companies in the UK is also increasing.While Satsuma Technology is already listed on the UK's largest venue, the London Stock Exchange, and plans to allocate up to two-thirds of its reserves to bitcoin, Aquis-listed The Smarter Web Company currently leads the UK public bitcoin treasury race with 2,050 BTC worth $235 million, according to Bitcoin Treasuries data. Aquis is a UK exchange for small and mid-sized growth firms — a low-cost alternative to the LSE but far smaller and less liquid.The Smarter Web Company also announced on Wednesday it had raised another $21 million via a bitcoin-denominated convertible bond.Controversy erupted last month in the investor community of The Smarter Web Company, expressing concern on X over UTXO's support for Satsuma, citing "market cannibalism." Critics saw UTXO's involvement conflicting with the community's perception of its strategy of backing one bitcoin treasury leader per market.The next-largest UK public company bitcoin treasury is Phoenix Digital Assets with 247 BTC ($28 million), followed by Coinsilium with 124 BTC ($14 million). Crypto asset manager CoinShares, based in the British Crown Dependency of Jersey, also holds 236 BTC ($27 million).Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.