UK-listed decentralized AI and bitcoin treasury firm, Satsuma Technology, has announced the successful closing of a major fundraising round, securing £163.6 million ($217.6 million) through secured convertible notes.
The funding round, which significantly exceeded its £100 million minimum target by 63.7%, was led by ParaFi Capital.
Also, there was participation from prominent crypto investors such as Pantera Capital, DCG, Kraken, Arrington Capital, Borderless Capital, and several institutional funds based in London.
The convertible loan notes will convert into ordinary shares at £0.01 per share upon shareholder approval and regulatory clearance, with a draft prospectus already submitted to the UK Financial Conduct Authority.
The company stated that proceeds will be used to grow its operations, maintain working capital reserves, and significantly expand its bitcoin treasury.
Satsuma Shares Drop 21% Despite Oversubscribed Fundraise
Despite the funding success, Satsuma’s stock (SATS.L) dropped by 21.57% on Wednesday, falling from £4.70 to £3.70, and continuing a broader downtrend of more than 50% since the firm first announced its bitcoin treasury strategy in June.
Investors appear cautious or divided on the company’s aggressive shift toward a crypto-heavy treasury model.
According to data from TradingView, the steep fall in share price came shortly after the funding announcement, suggesting market concerns around dilution or uncertainty about the long-term sustainability of Satsuma’s strategy in combining decentralized AI and a bitcoin-centric treasury.
The company was formerly known as Streaks AI and later Tao Alpha, and has repositioned itself as a leader in AI agent infrastructure, operating within the Bittensor decentralized AI network.
Bitcoin-Powered Fundraising Marks a Historic First in London
A notable feature of the raise was the acceptance of 1,097.29 BTC, equivalent to approximately £96.8 million, from a significant portion of investors who chose to participate using bitcoin.
Satsuma calculated the BTC value using a fixed daily rate over a 24-hour subscription window.
The marks the first-ever bitcoin-denominated funding round for a London-listed company, representing a milestone in corporate fundraising practices.
Satsuma had previously acquired 28.56 BTC for $3.4 million on July 13, following a $6.6 million seed round in June.
CEO Henry K. Elder, formerly of UTXO Management, described the raise as a “landmark validation” of the company’s belief in fusing a bitcoin-native treasury with decentralized AI, calling it a “paradigm shift in corporate value creation.”
Also Read: US Strategic Bitcoin Reserve Will Involve Buying $BTC, Not Just Seized Assets, Says Jan3 CEO
UK Bitcoin Treasury Market Heats Up Amid Growing Institutional Support
Satsuma’s high-profile funding round places it firmly within the growing circle of UK-based companies building bitcoin treasuries.
While the US continues to dominate this space, spearheaded by Michael Saylor’s MicroStrategy, the UK is seeing momentum build.
The Smarter Web Company, listed on the Aquis Exchange, currently leads the UK bitcoin treasury race with 2,050 BTC (approx. $235 million).
It too announced a bitcoin-denominated bond raise of $21 million on the same day as Satsuma’s news.
However, the rise of multiple BTC treasuries in the UK has sparked some controversy, with The Smarter Web’s investor community expressing discontent over UTXO’s support for both firms.
They argue it may dilute market leadership and cause “cannibalism” between portfolios competing for the same narrative dominance.
Also Read: Billionaire Grant Cardone’s Real Estate Firm Buys 100 More Bitcoin Amid Dip, Now Holds 1100 BTC
The Road Ahead: Challenges and Leadership in a Volatile Sector
Under Satsuma, the horizon presents that all-too-familiar challenge of having to reassure public market investors and concurrently execute its gargantuan roadmap that attempts to straddle between AI infrastructure and crypto-based asset strategies.
With the funds now secured and regulatory approval pending, the company intends to build on its operational strength.
They also aim to continue developing AI agents for Bittensor subnets and maintain an operating cash balance for at least three months.
Despite a significant drop in share price, the oversubscribed raise and institutional participation signal strong insider confidence.
Whether Satsuma can weather market volatility and prove that a hybrid model of AI + Bitcoin treasury can generate long-term shareholder value remains a central question as the firm advances its mission from London’s global financial stage.