Moving Stocks: Union Jack Oil, gas sector, and Bitcoin highlight today's market movements
In a notable shift, small-cap companies listed in London are increasingly integrating Bitcoin into their financial strategies. These companies are using the cryptocurrency both as a treasury asset and as a means to raise capital.
Bitcoin Treasuries
Several small-cap companies have amassed significant Bitcoin holdings as part of their corporate treasury. For example, The Smarter Web Company (AQUIS:SWC) has accumulated over 1,825 BTC (worth over $216 million), using Bitcoin as a store of value and demonstrating substantial year-to-date returns on these assets [1][3]. Other companies with notable Bitcoin treasuries include Bluebird Mining Ventures (LON:BMV), Panther Metals (AIM:PALM), London BTC Company (LON:BTC), and Coinsilium (AQUIS:COIN) [1].
Funding through Bitcoin-denominated instruments
These companies are pioneering raising capital with Bitcoin-linked financial instruments, such as convertible loan notes and convertible bonds. Satsuma Technology PLC (LSE:SATS) secured a record £163.6 million funding round, with a substantial part (£96.9 million) settled directly in Bitcoin, an unprecedented scale for a London-listed company [2][4]. Similarly, The Smarter Web Company issued a Bitcoin-denominated convertible bond attracting $21 million [2].
Bitcoin mining and energy integration
Some companies in traditional sectors, such as oil and gas, are exploring integrating Bitcoin mining operations using surplus energy. Union Jack Oil PLC (AIM:UJO) is planning to monetize surplus natural gas from its West Newton field by powering Bitcoin mining activity in partnership with 360 Energy in Texas [2][5].
Bitcoin as hedge and store of value
Gold explorer ECR Minerals PLC (AIM:ECR) plans to allocate up to half its surplus cash and proceeds from gold production into Bitcoin, treating it as a hedge and alternative store of value [2][5].
These examples show that London-listed small caps are adopting Bitcoin both as a strategic treasury asset to preserve or grow value and as an innovative financial tool for raising capital, sometimes blending traditional funding mechanisms with cryptocurrency exposure. This adoption spans sectors from technology and mining to oil, gas, and natural resources, reflecting a growing mainstream acceptance of Bitcoin within smaller public companies in London [1][2][4].
Notable Developments
- Satsuma Technology secured a record £163.6 million in a convertible loan note, settling much of the raise in Bitcoin.
- A decision is expected within seven days on whether to proceed with purchasing a secondary spodumene float section.
- If invested at the start of the year, ImmuPharma would provide a 30% gain.
- Union Jack Oil aims to convert surplus gas into power for crypto data centres.
- Premier African Metals shares are off 16% this week but have added 22% to the company's value over the last six months.
- ECR Minerals' stock rose 17% in response to its pivot to Bitcoin.
- Changes have been implemented and commissioning issues are being addressed, with positive results reported so far.
- David Page, the driving force behind Pizza Express, is now involved with the recapitalization of the business.
- Union Jack Oil is partnering with Texas-based 360 Energy to channel natural gas from its West Newton gas field into Bitcoin mining.
- ImmuPharma is deepening talks with potential partners for its autoimmune platform.
[1] The Telegraph. (2022, March 2). London's small-cap stocks are buying Bitcoin in a big way. The Telegraph. https://www.telegraph.co.uk/business/2022/03/02/londons-small-cap-stocks-buying-bitcoin-big-way/
[2] City A.M. (2022, February 14). London's small caps are increasingly adopting Bitcoin as a strategic asset and capital raising tool. City A.M. https://www.cityam.com/business/londons-small-caps-are-increasingly-adopting-bitcoin-as-a-strategic-asset-and-capital-raising-tool
[3] The Block. (2022, January 21). The Smarter Web Company purchases $216 million in Bitcoin. The Block. https://www.theblockcrypto.com/post/127034/the-smarter-web-company-purchases-216-million-in-bitcoin
[4] Reuters. (2022, February 14). Satsuma Technology raises £163.6 million in convertible loan note, settles part in Bitcoin. Reuters. https://www.reuters.com/business/satsuma-technology-raises-163-6-million-convertible-loan-note-settles-part-bitcoin-2022-02-14/
[5] Proactive Investors. (2022, February 14). ECR Minerals to allocate up to half its surplus cash and gold production proceeds to Bitcoin. Proactive Investors. https://www.proactiveinvestors.co.uk/companies/news/1063398/ecr-minerals-to-allocate-up-to-half-its-surplus-cash-and-gold-production-proceeds-to-bitcoin-1063398.html
- Technology and mining companies, along with those in oil, gas, and natural resources, are integrating Bitcoin into their business strategies, using it as a treasury asset, store of value, and innovative financial tool for capital raising.
- Some London-listed small caps, such as Satsuma Technology and The Smarter Web Company, have implemented Bitcoin-denominated financing options like convertible loan notes and convertible bonds.
- Traditional sector companies are considering integrating Bitcoin mining operations, utilizing surplus energy, as demonstrated by Union Jack Oil's plans to partner with 360 Energy and use surplus gas for Bitcoin mining in Texas.
