The Reform UK leader, Nigel Farage, has made an investment into Stack BTC Plc, a London-listed Bitcoin treasury company that has been expanding its strategy of purchasing Bitcoin and buying cash-generating businesses. The company is chaired by ex-UK chancellor Kwasi Kwarteng.
On Monday, Stack BTC Plc stated that it has completed a £260,000 ($347,000) equity fundraising round, which involved strategic investors, including Blockchain.com, a crypto-infrastructure company, and Reform UK Leader, Nigel Farage.
Farage’s investment was £215,000 ($286,000), via his investment vehicle, Thorn-In-The-Side Ltd. This would put Farage as the owner of 6.31% of the company when the new shares are admitted for trade.
In total, Stack BTC Plc issued 5.2 million new shares at £0.05 each. The new shares will begin trading on the Aquis Growth Market on March 12th.
Stack BTC Plc Expands Bitcoin Treasury Reserve Strategy
Stack BTC Plc stated the funds raised will support its goal of creating a Bitcoin treasury reserve. At the same, it will help with acquiring profitable operating businesses in the UK.
Recently, Stack BTC Plc revealed that it had acquired its first Bitcoin, purchasing 21 BTC at an average price of $71,594 per coin. The acquisition cost roughly $1.5 million.
Prior to this recent restructuring, Stack BTC Plc traded as a digital asset investment vehicle, now rebranded around a Bitcoin treasury strategy. Additionally, Stack BTC Plc is developing its Bitcoin treasury infrastructure and institutional-grade custody services in collaboration with Blockchain.com.
This further demonstrates the development of institutional structure behind corporate Bitcoin reserve strategies.
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Strong Investor Reaction Follows Announcement
The announcement caused a strong reaction from investors. As the data by TradingView shows, the chart indicates that prior to the announcement, STAK stock closed at 5.975 pence. But it rose intraday to nearly 9.20 pence, a gain of approximately 54%.
Source: TradingView
The rapid increase in the STAK price is indicative of increasing investor interest in companies adopting Bitcoin treasury models. As mentioned earlier, this model has become internationally recognized as more publicly-traded firms add digital assets to their corporate balance sheet.
Firms like Strategy (previously known as MicroStrategy) have led the way in implementing this model. This has prompted other firms looking to enter the cryptocurrency market to follow suit.
Nigel Farage Aligns Himself With the Digital Asset Sector
Nigel Farage has been increasingly supporting the digital asset sector. He stated in the acquisition announcement that the investment in Stack BTC Plc is a reflection of long-standing support for Bitcoin and financial innovation.
“I am one of the very few political advocates for Bitcoin in the UK,” Farage stated. Additionally, Farage believes that London should solidify itself as a global center for the crypto industry. Furthermore, the Reform UK party has also garnered support from the crypto community, accepting cryptocurrencies as part of their fundraising efforts.
Why This Is Important
Nigel Farage’s direct investment in a Bitcoin treasury company indicates an increase in momentum for crypto adoption within traditional financial markets.
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