Shares in Blue Star Capital PLC (AIM:BLU) dropped 9% after the company raised £1.15 million through a placing to fund a secured loan to SatoshiPay, its largest holding.
The AIM-quoted investor, which focuses on blockchain and payments, said at least £1 million will be used to support SatoshiPay’s digital asset treasury operations.
Blue Star will benefit from any capital appreciation on the crypto portfolio but will not directly hold crypto assets. The company also launched a broker option to raise up to a further £100,000 from existing shareholders.
It said the funds would accelerate SatoshiPay’s Vortex platform, which provides liquidity for decentralised finance protocols.
Blue Star noted it may allocate a portion of proceeds to support other holdings and working capital. Additional shares have been issued for a debt settlement and conversion.
The stock fell 2p to 21p, below the notional price of 22.2p that would account for the additional discounted shares.