Vinanz Ltd (LSE:BTC, OTCQB:VINZF) CEO Hewie Rattray talked with Proactive about the company’s recent successful fundraising round, in which it raised over £3.50 million—more than triple its original target. Rattray attributed the strong retail investor interest to Vinanz’s positioning as the best value player in the Bitcoin treasury space in the UK.
Rattray explained that most of the newly raised capital will be used to purchase Bitcoin directly at spot, minus associated fees. However, the company is also exploring strategic financial instruments, such as selling put options and bond issuance backed by Bitcoin, to diversify its exposure.
Looking ahead, Vinanz is focused on strengthening its Bitcoin treasury, with its mining operations remaining in the US and Canada as it prepares for a Nasdaq IPO in Q3. “I think it's important for us to have that kind of global presence there. And the US investors like that, especially the institutions,” Rattray said.
On risk management, Rattray emphasised a long-term perspective. “This is the accumulation game… I have a long-term view of Bitcoin or even a medium-term view 12 to 24 months that we’re going to go up substantially from here.”
Proactive: Joining me is Vinanz Ltd CEO Hewie Rattray. Great to speak with you and congratulations on your successful fundraising. You raised over £3.5 million, more than triple your target. What drove such strong investor demand, especially from retail investors?
Hewie Rattray: I think given the behavior of our peers in the space in the UK, I think we're starting to represent, what we're starting to look like the best value player on the market. I think when you look at the metrics in which Bitcoin treasury companies are judged by—so mNAV, premium to NAV, months or days to cover mNAV—we look like probably a place for the value investors in the space to go to.
Proactive: So how do you plan to deploy the new funds? Will it go mostly into direct Bitcoin purchases or also mining infrastructure?
Hewie Rattray: So for this fundraise right now I think we'll almost deploy the entire amount into Bitcoin at just at spot, right. With the exception of some fees and commissions associated with the raise. But having said that, you know, we are exploring different opportunities to gain notional exposure to Bitcoin that doesn't just consist of buying spot. So when I hear what I'm referring to, there are strategies like selling put options and earning money off the premiums.
If we think that Bitcoin won't go below a certain price for the duration of that option. You know, we're looking at bond issuance backed by the Bitcoin similar to what MicroStrategy do. I'm really interested to see some of the transactions that other companies on the UK markets have been doing—a really interesting one announced this morning.
And yeah, you know, we're quite interested in how to gain good exposure to Bitcoin without necessarily going 100% to buy at spot. And that's kind of the game here I think.
Proactive: Vinanz operates in the US and Canada mostly. Are there plans to expand geographically or scale your mining capacity further?
Hewie Rattray: I think the mining element of our business will stay in the US and Canada, particularly because we're going for the Nasdaq IPO in Q3 this year, and we'll be filing our F1 in the next couple of weeks. So I think it's important for us to have that kind of global presence there. And the US investors like that, especially the institutions.
At some point we will be expanding our fleet. But like I said earlier, the focus right now is building Bitcoin treasury, increasing our national exposure.
Proactive: You mentioned ambitions to become the UK's leading listed bitcoin company. What sets Vinanz apart from others in that space?
Hewie Rattray: So I think the standout thing with Vinanz is that we're listed on the LSE. And you know, that has the most rigorous application process and the most rigorous governance. We were a Bitcoin miner first. And then we've kind of slightly pivoted into treasury operations. We aren't disguising ourselves as a different kind of company.
We are very authentic. We've been in the Bitcoin space as a company for a couple of years—two and a half years. So when you ask what distinguishes us, I think we've been around a long time. And we're on the most premium market with the biggest amount of capital available to invest in us.
So when you talk about getting onto indexes, getting global investors and institutions, I think we're best placed to do that.
Proactive: With Bitcoin's recent volatility and long-term predictions ranging wildly, how do you approach risk management and treasury strategy?
Hewie Rattray: We're not too sensitive on price. This is the accumulation game. We've got to raise money, buy Bitcoin, and then do it all again next week and the week after. I have a long-term view of Bitcoin—or even a medium-term view, 12 to 24 months—that we're going to go up substantially from here.
And I don't want to try and time the market. I just want to aggressively buy as much as possible when we can.
Proactive: Well, I hope you'll continue to keep us posted on your progress. Thank you very much for speaking with us today.