Connecting Excellence Group Plc CEO Scott Ellam talked with Proactive about the company’s strategic expansion into Bitcoin-backed financial instruments and its long-term treasury ambitions. In the interview, Ellam introduced the XCE Bitcoin Bond, which he described as the first of its kind, highlighting its “true bitcoin denomination” feature and a refix mechanism designed to protect both shareholders and bondholders during market fluctuations.
He explained that the bond’s conversion price mirrors Bitcoin’s price, allowing for value preservation and flexibility even during market volatility. “We've designed them to be beneficial for the bondholders, the shareholders and the business going forward,” Ellam said.
Ellam also discussed the group’s treasury strategy, confirming that Connecting Excellence now holds 41.36 Bitcoin on its balance sheet, with a long-term goal of acquiring 1,000. The company intends to purchase Bitcoin with all available cash and on an ongoing basis, regardless of short-term price movements. Ellam cited a long-term compound annual growth expectation of 30% over the next decade.
He referenced broader institutional momentum, including BlackRock’s Bitcoin ETF and remarks from its CEO Larry Fink about potential nation-state adoption. Ellam suggested that such developments would significantly impact price trajectory and global adoption trends.
Proactive: Scott, happy New Year — and you started the new year running with two lots of news this morning, starting with your new Bitcoin-denominated convertible bond. The structure is being called a first of its kind. Tell us more?
Scott Ellam: Yeah, so our XCE Bitcoin Bond is first of its kind. The two elements that make it unique are, firstly, the Bitcoin differentiator, which allows the conversion price to track the Bitcoin price. This gives investors and bondholders true Bitcoin denomination in the bond.
Secondly, there's a refix at XCE’s option, which means that if market sentiment is low and our share price isn’t at the conversion price at maturity in 12 months, we can adjust it. That benefits shareholders and increases Bitcoin per share reflected in the conversion price.
We’ve designed it to benefit bondholders, shareholders, and the business going forward. Ultimately, what key investors want — and what we want — is for those bonds to be repaid back in shares, at a benefit to shareholders.
Proactive: Can you explain how the Bitcoin price differentiator actually protects Bitcoin's value per share when markets are volatile?
Scott Ellam: If Bitcoin’s price drops and our share price stays the same, the conversion price halves. That can be advantageous to bondholders and not harmful to shareholders. The business isn’t trapped in an environment where the bond can’t convert.
If the Bitcoin price doubles, the conversion price doubles. Then, for us to call the bond, our share price must exceed a 120% soft call mark. That means bondholders are only in a soft call situation when our share price has outperformed Bitcoin.
So, it’s true Bitcoin denomination. I believe it’s a scalable tool that will appeal to institutional investors, not just in the UK but globally, especially those already holding large amounts of Bitcoin.
Proactive: You've also followed up on December’s purchases with the acquisition of more Bitcoin. You now have 41.36 Bitcoin on the balance sheet. How do you decide when to buy more and when to pause?
Scott Ellam: We want to buy Bitcoin with all available cash, all the time. As soon as we can buy Bitcoin, we do.
We believe Bitcoin will see a 30% compound annual growth rate over the next ten years. Whether the price is up or down next week doesn’t matter.
We’ve been buying for four years, and we plan to continue for 40 years. We see it becoming a globally recognised reserve commodity, asset, and money.
You can already see corporate adoption — Larry Fink at BlackRock has said it’s the most successful ETF they’ve done. The infrastructure is in place. In 2025, I expect to see that reflected in 2026. So yes, we want to buy consistently, forever.
Proactive: And what do you think is going to support Bitcoin going into 2026?
Scott Ellam: To quote Larry Fink again — if nation states start buying the asset, don’t be surprised to see prices at 500,000 or 700,000.
That may not happen this year, but it’s why we’re building a treasury. We want to secure 1,000 Bitcoin on the balance sheet as soon as possible.
Our operating business will grow through talent attraction, share leverage, and welcoming other businesses into the group.
Long-term, we see strong performance. To manage short-term volatility, the key is consistent buying over time.
Other catalysts include the potential for a US strategic Bitcoin reserve. If the government goes ahead and starts buying in a budget-neutral way, other countries may follow. In that environment, who knows where Bitcoin’s price could go. But I only see it going up long term.
Proactive: Well, Scott, I hope you continue to keep us updated with your progress. Thank you very much for taking the time today.