Satsuma Technology Raises £168.9M and Holds Over 1,100 BTC in Treasury

Interim results: big funding, bigger Bitcoin, and an unusual reporting cadence

Satsuma Technology PLC (LSE: SATS) has dropped an extra set of unaudited interim results covering 1 June 2025 to 8 August 2025, alongside restated figures for the three months to 31 May 2025. The Board says the aim is more frequent disclosure to show balance sheet strength and treasury holdings. That makes sense when you’ve just raised a very large amount of money and are building around emerging assets like Bitcoin.

Headline takeaways: £168.9 million raised via Convertible Loan Notes, 1,148.647 BTC on the balance sheet worth about £99.6 million at 8 August, and £54.0 million in cash. Revenues are starting to tick up, but the period shows a sizeable accounting loss as the company scales.

Funding: £168.9 million of CLNs changes the game

Satsuma issued two non‑interest bearing Convertible Loan Notes (CLNs), both secured by a first‑ranking debenture and classified as fair value through profit or loss (FVTPL) under IFRS 9:

• CLN1: £5.0 million on 17 June 2025, convertible at £0.002 per share, maturing 30 December 2025 if not converted.
• CLN2: £163.949 million on 28 July 2025, convertible at £0.01 per share, also maturing 30 December 2025 if not converted.

If fully converted (subject to shareholder and regulatory approval by 30 September 2025), these notes could translate into around 2,500,000,000 new shares for CLN1 and 16,394,900,000 new shares for CLN2. For context, there were 527,800,200 shares in issue at 8 August 2025. The potential dilution is therefore very large, but the flip side is that the debt-like liability disappears on conversion and the balance sheet strengthens.

Note the cash timing effects: £58.885 million of CLN proceeds landed during the period, with a further £7.488 million showing as other receivables (subsequently received). Transaction costs linked to the CLNs went straight through the income statement, which weighs on reported profit but not on cash.

Bitcoin treasury: 1,148.647 BTC plus cash firepower

As at 8 August 2025, Satsuma held 1,148.647 BTC valued at £99,590,960, alongside £12,022 of AROK tokens. Cash and cash equivalents stood at £54,043,000. The company also incorporated a Singapore subsidiary to support treasury operations in a favourable jurisdiction.

Crypto is treated as an intangible asset under IAS 38. You can see the volatility in the numbers: there was a £1,237,000 revaluation loss on cryptocurrencies during the period. That’s the nature of the asset class, and it will flow through results quarter by quarter.

P&L snapshot: heavy non‑cash items drive a reported loss

Revenue for the period was £9,000, reflecting “higher utilisation of the subnet” and early commercial traction. Administrative expenses were £8,767,000 as the company invests in infrastructure, governance and growth. Add in a foreign exchange loss of £382,000 and the crypto revaluation, and the loss before tax came in at £10,377,000. Basic and diluted EPS was a loss of 2.23 pence.

Important nuance: a lot of the expense is non‑cash. The cash flow statement adds back £6,174,000 of fees settled through the CLN issue and £266,000 of services settled by warrants. Net cash used in operating activities was £1,391,000, which is much lighter than the accounting loss suggests.

Balance sheet mechanics: why equity is negative today

Total assets at 8 August 2025 were £164,002,000, including £101,760,000 of intangible assets (largely cryptocurrencies) and £625,000 invested in Roundhouse Digital. Current liabilities were £170,847,000, dominated by the CLNs recognised at fair value. That accounting treatment produces negative equity of £6,845,000 at the balance sheet date.

If the CLNs convert as planned, those liabilities move to equity and the negative equity position would be expected to reverse. Until then, investors should expect the FVTPL treatment to add volatility to reported equity.

Restatement: tidying up the IP accounting

Satsuma restated the previous interim period to recognise a reversal of impairment on intellectual property (IP), with the IP now carried at £2.157 million. Previously it had been shown as a revaluation. The company says the restated treatment aligns with its policy and IFRS, and the audited 2025 financial statements are unchanged. This is a sensible clean‑up and reads as an upgrade in governance.

Key numbers you should know

Funds raised via CLNs	£168,949,000
Cash and cash equivalents (8 Aug 2025)	£54,043,000
Bitcoin holdings	1,148.647 BTC (£99,590,960)
Revenue (period)	£9,000
Loss before tax (period)	£10,377,000
Crypto revaluation loss (period)	£1,237,000
Shares in issue (8 Aug 2025)	527,800,200
Warrants outstanding	66,052,333
Investment in Roundhouse Digital	£625,000

What’s positive, and what could bite

Positives

• Balance sheet strength: £54.0 million cash and a £99.6 million Bitcoin treasury give significant runway to build.
• Non‑interest bearing CLNs reduce cash burn versus typical debt funding.
• Operational momentum: management points to higher subnet utilisation and rising revenues, albeit from a low base.
• Governance steps forward: restatement of IP and a commitment to frequent disclosure are encouraging.

Watch‑outs

• Dilution risk: if the CLNs convert, the share count could increase by many multiples of the current 527.8 million shares.
• Approval and timing risk: conversion requires shareholder and regulatory approvals by 30 September 2025; the notes mature on 30 December 2025 if not converted.
• Accounting volatility: CLNs at FVTPL and crypto revaluations will make reported profits and equity swing around.
• Early revenue stage: period revenue of £9,000 means the investment case still hinges on future execution.
• Security: the CLNs are secured by a first‑ranking debenture, which is a consideration if conversion does not occur.

My take: high‑octane strategy with clear milestones ahead

This update shows Satsuma has the firepower to pursue its strategy at the junction of decentralised AI and Bitcoin treasury. The funding round signals strong institutional interest, and the company now controls a sizeable BTC position and liquidity to scale.

The trade‑off is straightforward: today’s numbers are shaped by accounting for CLNs and crypto, revenues are nascent, and potential dilution is substantial. The near‑term catalysts are crisp – conversion approvals by 30 September 2025, progress on subnet utilisation translating into revenue, and how actively the company deploys its treasury. If those pieces fall into place, the balance sheet optics improve markedly. If not, the secured nature and maturity of the notes become the focus.

For now, this is a high‑risk, high‑potential story that’s being told with more transparency than most in the space. Keep an eye on conversion, cash deployment, and the pace at which those AI agents start paying their own way.