Bitcoin treasury fever is spreading.
A growing number of companies, big and small, have begun to pile Bitcoin up on their balance sheets. The trend started with US software group Strategy, which has spent nearly five years stacking up over $64 billion worth of the top cryptocurrency.
The playbook has gone global and includes companies from Japan’s Metaplanet to Trump Media and GameStop in the US.
Now, a handful of London’s microcaps are jumping in.
A wave of UK-listed companies, many on London’s Aquis Exchange, have unveiled Bitcoin treasury strategies in recent months.
AI services group Tao Alpha plans to raise £100 million to expand its Bitcoin holdings, according to the Financial Times. The news sent its shares up over 1,200%, though much of that rally unwound just a week later.
Website design firm The Smarter Web Company saw its valuation balloon from just £4 million to over £1 billion within weeks of revealing its own Bitcoin pivot in April.
Even precious metals miners like Bluebird Mining are getting in on the act, raising £2 million in debt to begin building a Bitcoin reserve.
The company describes its strategy as “converting gold into digital gold” by funnelling revenue from its mining projects into Bitcoin. Shares are now trading nearly 400% higher than they were a month ago.
The risks
But analysts warn the strategy carries risks.
For companies like Strategy, the approach works as long as their share price trades above the value of the Bitcoin they hold, known as the “net asset value.”
That premium allows it to issue new shares and use the cash to buy more Bitcoin. But once the share price falls to match NAV, that engine stalls.
“Once you’re trading at net asset value, shareholder dilution is no longer strategic, it’s erosion,” warned Matthew Sigel, head of digital assets at VanEck.
Smaller, newer treasury companies face an even tougher road. Without a strong track record or market reputation, they may have to rely on riskier debt or face steeper terms when raising money.
If Bitcoin’s price drops or market confidence fades, those companies could be forced to sell their Bitcoin at a loss to stay afloat.
US-listed Semler Scientific has already run into trouble after its share prices tumbled this year, cutting off access to fresh capital and limiting its ability to grow its Bitcoin reserves.
