Satsuma Technology PLC (LSE:SATS) has closed a heavily oversubscribed £163.6 million capital raise, issuing a second secured convertible loan note backed by a who's who of digital asset and institutional investors, and settling much of the transaction in Bitcoin.
The London-listed firm, which is building its business at the intersection of decentralised artificial intelligence and Bitcoin treasury strategy, originally targeted £100 million when the round opened in late June.
By the time the books closed on 28 July, demand had outstripped that goal by more than 60%.
The round was led by ParaFi Capital, with participation from notable names across the digital finance ecosystem, including Pantera Capital, Blockchain.com, Kraken, Arrington Capital and Digital Currency Group (DCG).
A number of large institutional equity funds based in London, with combined assets under management in excess of £300 billion, also participated.
The loan notes, which convert into equity at 1p per share, are contingent on shareholder approval and the publication of a prospectus.
A general meeting will be called shortly to approve the necessary resolutions. If converted in full, the raise would result in a significant issuance of new shares in Satsuma.
In a first for London markets, a large portion of the raise, £96.9 million, equivalent to 1,097.29 Bitcoin, was settled in cryptocurrency.
The Bitcoin proceeds are now held by the company’s Singapore-based subsidiary, Satsuma Pte.
The option to pay in Bitcoin was offered to meet growing investor demand and in line with the company’s strategy to operate a Bitcoin-native treasury.
CEO Henry K. Elder said the result was “a landmark validation” of Satsuma’s vision.
“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,” he said.
The funds will be used to grow Satsuma’s operations, including hiring developers and expanding infrastructure.
A portion of the proceeds will be kept in cash, covering at least three months of working capital, while the balance will be added to the company’s Bitcoin reserves, with a cap set to limit treasury exposure to prudent levels.
The notes are secured by a first-ranking charge over the assets of both Satsuma and its Singapore subsidiary, and will be released automatically upon conversion into shares.
A security trustee has been appointed to represent investors.
To increase transparency, Satsuma plans to publish unaudited interim financial statements for the period ending 6 August and will introduce monthly updates thereafter.
This marks a rare commitment to frequent disclosure for a public company operating in emerging asset classes.