Pantera Capital Encourages Satsuma to Divest $50M in Bitcoin Holdings

Pantera Capital, a venture fund specializing in digital assets, is urging London-listed Satsuma Technology Plc to liquidate its remaining Bitcoin (BTC) holdings and distribute the proceeds to shareholders. This move signals a notable change in attitude towards a previously favored strategy. Pantera's DAT Opportunity Fund, which owns approximately 6.7% of Satsuma, is among the investors advocating for a complete divestment from the company’s Bitcoin position, which is valued at roughly $50 million, equating to about 646 BTC. Increased investor pressure has emerged as Satsuma's stock plummeted 98% from its peak of £14 last June. The company has acknowledged receiving requests for capital returns but has not identified the investors involved. Executive Chairman Ranald McGregor-Smith mentioned that the firm is evaluating options while balancing the interests of all shareholders. Previously, Satsuma raised £164 million through an oversubscribed convertible note in August 2025, supported by prominent crypto investors such as Kraken, Pantera Capital, Borderless Capital, and Digital Currency Group. In December, the firm sold 579 BTC, representing nearly half of its holdings, to generate approximately £40 million. Additionally, market dynamics have shifted significantly; Bitcoin surged past $126,000 last October before dropping to $60,000 by early February, as confidence in Bitcoin-centric treasury strategies waned. Satsuma has also experienced leadership transitions, including the departure of a director in February and CEO Henry Elder's resignation in March. These events unfold amidst ongoing warnings from market analysts regarding the risks of substantial BTC exposure for corporations. Investor Michael Burry cautioned earlier this year that a decline in BTC could lead to broader financial repercussions, particularly for companies with extensive Bitcoin treasuries. He stated that if Bitcoin falls below key technical levels, it could cause systemic stress, not only within the cryptocurrency sector but also in related financial markets. Burry further noted that an additional 10% decline could produce significant unrealized losses for major holders, including firms like Strategy, potentially impacting their access to capital markets and heightening bankruptcy risks. Zac Prince of Galaxy Digital has also raised concerns about the viability of BTC treasury models, indicating they rely on complicated financial structures and may struggle to maintain valuations without more robust business operations.