Connecting Excellence Group Plc (AQSE:XCE) CEO Scott Ellam earlier in the week joined Proactive to discuss the settlement of the company’s first Bitcoin-denominated bond and how it fits into a wider strategy to grow Bitcoin per share.
Issued at a premium and interest-free, the bond converts only if XCE shares outperform Bitcoin, offering downside protection for investors.
Ellam explains why the structure is designed to avoid dilution while adding Bitcoin to the balance sheet in all market conditions.
He also outlines how the bond complements the group’s operational recruitment business and longer-term capital markets plans.
Proactive:
Scott, very good to speak with you again. You’ve just settled your first Bitcoin bond, adding ten Bitcoin to the treasury. How does this fit into your strategy?
Scott Ellam:
It increases shareholders’ Bitcoin per share upon conversion, but this is just one part of our strategy and one part of our business. Our business model includes an operational executive recruitment company that has recently been making successful placements, including a US sales director with an AI intelligence firm, a UK managing director at an integrated services firm, and a US-based director with a global consulting firm.
Scott Ellam:
On the operational side, we are gearing up growth plans which, even if capital markets were closed to us, could generate a 25% Bitcoin per share yield based on the current scale of the business. On the capital markets side, with people such as Richard Byworth and Vijay Selvam, we want to design tools that allow us to increase Bitcoin per share through capital markets as well. This bond is one of those tools and we believe it is scalable and appealing to both UK and international investors.
Proactive:
The XCE Bitcoin bond is interest-free, converts to shares, and offers downside protection. Can you explain how it works in plain English?
Scott Ellam:
We sell the bond at a 30% premium to the share price, so bondholders are paying more than investors buying shares in the market. The bonds convert when our shares outperform Bitcoin by 20% in any environment. The conversion price tracks Bitcoin, meaning Bitcoin comes onto the balance sheet whether Bitcoin’s price goes up or down, provided our shares outperform it.
Scott Ellam:
By doing this, we increase Bitcoin per share for existing shareholders. I believe this is the world’s first truly Bitcoin-denominated bond. It appeals to Bitcoin-holding institutions because it offers downside protection with a free option to the upside, and it also appeals to pound-based investors seeking Bitcoin exposure.
Proactive:
Given Bitcoin’s volatility, how do you balance risk and reward?
Scott Ellam:
The business is geared towards increasing Bitcoin per share. Bitcoin is a fixed-supply asset with a fixed issuance schedule. Most Bitcoin already exists, and the remainder will be mined over the coming decades. One Bitcoin will always be one Bitcoin, whereas nobody can predict future supply of pounds or dollars.
Scott Ellam:
We are focused on the long term. As Bitcoin becomes more institutionally adopted, we expect volatility to dampen and value to increase when measured against fiat currencies.
Proactive:
Looking ahead, what can we expect from XCE as 2026 progresses?
Scott Ellam:
We want to make more placements in our operating business and continue growing revenues. On the capital markets side, we want to scale the Bitcoin-denominated bond programme through 2026 and continue increasing Bitcoin per share while building our investor base.pro