Nigel Farage Acquires Stake in Kwasi Kwarteng's Bitcoin Venture Stack BTC
Reform UK leader Nigel Farage has made a significant investment in a Bitcoin reserve business led by former chancellor Kwasi Kwarteng. The move underscores Farage's vision of positioning the United Kingdom as a global hub for the cryptocurrency industry.
Details of the Investment and Equity Fundraise
Mr Farage has invested £215,000 in Stack BTC, a London-based firm listed on the Aquis challenger stock exchange. This investment was part of a broader equity fundraise totalling £260,000, which also included participation from Blockchain.com.
Through his investment vehicle Thorn In The Side Ltd, Farage acquired 4.3 million shares at a price of 5p per share. This transaction grants him a 6.3% stake in the company.
Stack BTC's Business Model and Leadership
Stack operates by building a portfolio of companies and investing their surplus cash into Bitcoin, with the aim of accumulating a substantial Bitcoin treasury. The firm is chaired by Kwasi Kwarteng, who served as chancellor for 38 days in 2022 under former prime minister Liz Truss.
Mr Kwarteng is well known for his role in devising the mini-budget that led to the pound falling to a 37-year low, due to tax cuts funded by over £70 billion in increased borrowing. He previously served as Conservative MP for Spelthorne, Surrey, until 2024. Together with his wife Harriet, Kwarteng controls a 5.4% stake in Stack.
Political Advocacy and Strategic Alignment
In a statement regarding his investment, Nigel Farage emphasised his longstanding support for Bitcoin, stating, "I have long been one of the UK’s few political advocates for Bitcoin, recognising the role digital currencies will play in the future of business and finance." He added, "London and the UK has historically been the centre of world’s financial markets, and I believe that we can and should be a major global hub for the crypto industry."
Kwasi Kwarteng expressed enthusiasm about the new investors, saying, "We are absolutely delighted to have Nigel Farage and Blockchain.com become strategic investors in Stack. Nigel’s unwavering support for British business and belief that Bitcoin is set to rapidly expand its role in finance is perfectly aligned with the company’s ethos and business plans."
Broader Political and Regulatory Context
This investment aligns with Reform UK's political agenda, as the party pledged last year to cut taxes on cryptocurrencies and establish a Bitcoin reserve fund if elected. Such measures would potentially allow individuals to pay taxes using Bitcoin.
Concurrently, the Treasury has announced new legislation set to take effect in 2027, which will regulate cryptocurrencies like Bitcoin similarly to other financial products. This regulatory overhaul aims to address the growing popularity of cryptocurrencies as alternative investments and payment methods.
Despite these developments, the UK's financial regulator has issued warnings, labelling cryptocurrency investments as "high risk" and cautioning that investors could "lose all their money" due to the asset's volatility.
