Nigel Farage Bitcoin firm turns to the public to raise cash – at double the price
A Bitcoin business run by former Chancellor Kwasi Kwarteng which counts Nigel Farage as one of its biggest investors has turned to the public to raise cash.
Stack BTC, which is listed on London’s Aquis stock market, is seeking to raise as much as £250,000 from retail investors via the issue of fresh shares.
But members of the public are being asked to cough up as much as double the price that Farage paid for the shares just days ago.
Last week, the Reform leader paid £215,000 to acquire £4.3m Stack BTC shares at a price of 5p per share. But this week’s retail offer has an asking price of 10p per share.
The move will renew scrutiny of Farage’s financial involvement in the crypto industry, after the MP vowed to make Reform the most crypto-friendly political party in the UK.
Farage invests in Bitcoin business
The Reform leader has spent £215,000 to acquire a 6.3 per cent stake in the small-cap company which says it is “focused on building a portfolio of high-quality, cash-generative businesses alongside a Bitcoin treasury,” according to a stock market filing published on Monday.
Kwarteng, who joined the firm’s board in November, has since become executive chairman of the business and controls a 5.4 per cent stake worth £185,000 together with his wife Harriet.
In an interview with City PM, Kwarteng defended the investment decision by Farage, who has adopted a more crypto-friendly stance following a similar shift in position from US president Donald Trump.
“Politicians are under massive scrutiny which is quite right, Kwarteng said.
“Twenty or thirty years ago people used to invest all the time, they were just seen as individuals who just happened to be MPs.
“I get the scrutiny but I think just because it’s unusual it doesn’t mean it’s in any way wrong or bad.”
Kwarteng called upon financial regulators like the Financial Conduct Authority to “try and engage with” crypto companies to support the industry to thrive in the UK.
“I think this is a new financial technology that will take a bigger and bigger role in global financial architecture, and we can either get on the train and get ahead of developments or we can be laggards, but this isn’t going away,” he said.
Equity fundraising and Bitcoin purchases
Since last week, Farage has invested a further £60,650 into Stack BTC at 10p per share, bringing his average purchase price to 6p.
The company has also raised a further £1.6m via broker AlbR Capital Limited.
The retail offer is being raised via the Winterflood retail access platform, and requires a minimum commitment of £500 per eligible investor.
Stack BTC has so far used the proceeds of funds raise to make more Bitcoin purchases. Last week the company purchased five Bitcoin at £51,580 each, and then a further five at £52,758.
The company said it now owns 31 Bitcoin, worth around £1.7m based on Wednesday’s prices — significantly less than the company’s market cap of £6.6m.