Cryptocurrencies $BTC are now embedded in many mainstream portfolios and regulators across multiple jurisdictions are finalizing oversight. In the US in particular, policymakers are signalling active support for sector development.
Against that backdrop, Kwasi Kwarteng, briefly the UK’s top finance minister in 2022, recently declared his interest in digital assets as executive chairman of Stack, a UK-based, Aquis-listed vehicle seeking to combine M&A activity with a Bitcoin treasury strategy. "Bitcoin is entering its institutional phase and this is a real opportunity," Kwarteng said. He has now been joined as an investor by Nigel Farage, leader of Reform UK.
Emphasis on cash
At the end of February, Stack announced a £2.1mn equity raise. The proceeds will fund acquisitions, seed its Bitcoin treasury and cover working capital. It was not a market-moving sum of money, but the company has drawn attention because its chairman became famous during the short-lived Liz Truss government – Kwarteng was only in post for 38 days. $ETH
A week or so later, Stack announced that Farage, who heads the UK's right-of-centre populist party, had added a further £260,000 investment.
Politics aside, the company is also interesting because of its business model. Speaking to Sandmark in an interview before the declaration of Farage's interest, CEO Jai Patel was clear that acquisition decisions will be driven by profitability. "Cash flow is more of a priority than specific sectors," he said.
There are obvious adjacencies. Patel acknowledged that attractive businesses exist within the $BTC ecosystem. Two recent joiners, who are both investors and C-level executives, come from property finance.
