London Bitcoin Treasury Company Driven into a Corner, Shareholders Vote to Sell All 668 BTC and Delist
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London Bitcoin Treasury Company Driven into a Corner, Shareholders Vote to Sell All 668 BTC and Delist
For investors, this is an excellent sample to observe how long the "never sell" promise can hold up in a bear market.
Navigating Web3 tides with focused insightsAuthor: CryptoSlate
Compiled by: TechFlow
TechFlow Editor's Note: Satsuma Technology has become the first treasury company in Europe potentially liquidating its Bitcoin. This vote not only decides the fate of 668 BTC but also exposes the fatal flaw of the treasury company model—when stock prices trade at a discount for a long period, the conviction to hold coins will be crushed by the pressure to cash out. For investors, this is an excellent sample to observe how long the "Never Sell" promise can hold up in a bear market.
Satsuma Technology missed the final proxy voting deadline today; the proposal plans to sell all Bitcoin held by the company and delist from the London Stock Exchange.
The next decision point will be the shareholder meeting on July 20.
If both special resolutions are passed, the company will initiate the process to sell all Bitcoin, return net cash, and cancel its listing status on the London Stock Exchange. As of June 30, the company held 668.48 BTC.
Both special resolutions require at least 75% voting support and are conditional upon each other—if either fails, the capital return and delisting will be blocked. The deadline applies to paper, online, and CREST proxy votes; eligible shareholders can still vote in person at the meeting on July 20.
The proposal was submitted by shareholders holding over 20% of Satsuma's issued share capital; the Board of Directors agreed to include it in the agenda without a formal application. Of the six-person board, four directors recommend rejecting the proposal, and two directors support it.
Trading was suspended at 7:30 AM on July 1 because unresolved voting prevented Satsuma's directors and auditors from assessing the company's prospects in time, resulting in the inability to publish audited accounts before June 30. The company expects to complete the accounts by the end of the month and stated that trading is expected to resume upon approval from the Financial Conduct Authority.
Satsuma's June 30 statement of circumstances shows its 668.48 BTC were valued at 29.44 million GBP, with a total net asset value of 33.23 million GBP. The report shows a Price-to-Book Ratio of 0.80x, no debt or other significant liabilities, an average cost per BTC of 84,026 GBP, and an unrealized book loss of 39,984 GBP per coin at the time.
Calculating the June 30 holdings based on CryptoSlate's Bitcoin price of 48,372.69 GBP on July 16, the total value is approximately 32.34 million GBP. This is not a distribution estimate, but it clearly presents the choice: maintain a listed company trading below the value of its coin holdings, or seek liquidation after deducting costs.
Bitcoin Treasury Companies Once Said Never Sell—Bear Markets Make Promises Change Quickly
If both votes pass and receive remaining approvals, the company's indicative timetable requires selling all Bitcoin around August 3, and issuing one non-tradable Class B share for each ordinary share around August 4.
After deducting a 2 million GBP working capital reserve and transaction and termination costs, the cash proceeds from the sale will be distributed to Class B share holders. The court confirmation hearing is expected to be held on September 8, delisting on September 14, and payment completed by September 28. All dates are conditional.
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If either vote fails, the proposal will neither trigger the Bitcoin sale nor lead to delisting. Satsuma stated it will continue its treasury strategy, and the trading suspension will depend on the release of accounts and consent from the Financial Conduct Authority.
Same Price, Very Different Returns
Satsuma's July 3 update separates former CLN1 and CLN2 convertible loan holders because the proposed pro-rata distribution will generate very different rates of return relative to the original investment. In a scenario where Bitcoin price is 59,923 USD, the return per 100 GBP is as follows:
These figures are for example only, not predictions. They deduct estimated transaction costs and 2 million GBP working capital, assume original CLN holders still hold their shares, and deduct approximately 3.2 million GBP in exercise proceeds in the case of CLN1 warrants.
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