Pantera Capital is leading a group of investors urging Satsuma Technology to liquidate its bitcoin holdings and return capital to shareholders after the company's share price collapsed more than 99% from its peak. The crypto investment firm, helmed by Dan Morehead, holds roughly 6% to 7% of Satsuma through its DAT Opportunity Fund, according to Bloomberg. Satsuma's remaining bitcoin position totals about 646 BTC, worth approximately $50 million at current prices.
The stock, which traded near 14 pounds in June 2025, recently fell to just 21 pence, leaving the company's market capitalization below the value of its bitcoin holdings. Satsuma confirmed it received shareholder requests for a return of capital, with Executive Chairman Ranald McGregor-Smith saying the company is reviewing options while balancing all investors' interests. The firm did not name specific shareholders.
Strategic Reversal: From AI-Driven Treasury to Forced Liquidation
Satsuma's troubles began to crystallize after it raised approximately £164 million ($221 million) in August 2025 via a convertible note backed by several digital asset firms, including Pantera Capital, ParaFi Capital, Kraken, and Digital Currency Group. The company branded itself as an AI-driven bitcoin treasury vehicle, joining a wave of firms allocating balance sheets to digital assets. However, market conditions shifted rapidly: Bitcoin climbed above $126,000 before falling to near $60,000 earlier this year, eroding the value of corporate treasury holdings tied to the asset. This drawdown exposed the risks of leveraged bitcoin strategies, especially for firms that raised capital near market highs.
Adding to the challenges, Satsuma experienced significant leadership turnover. A director exited in February, followed by the departure of CEO Henry Elder in March. These changes fueled investor concerns about governance and strategic direction. Tensions between Satsuma and its investors had been building since late 2024, when the company sold a large portion of its bitcoin holdings to repay noteholders who declined to convert debt into equity. That move drew criticism from some backers and led to calls for management changes.
Bitcoin Volatility as a Catalyst
The dramatic price swing in bitcoin — a peak above $126,000 followed by a plunge to $60,000 — directly impaired Satsuma's treasury value. The company's equity collapsed in tandem, creating a situation where its market cap fell below the value of its bitcoin stack. Now, investors are pushing for a clean exit: sell the remaining bitcoin and distribute proceeds to preserve what value remains. The proposal would mark the end of Satsuma's bitcoin treasury strategy less than a year after it began.
This case underscores the inherent risks of corporate bitcoin treasury strategies that rely on leverage or concentrated positions. Even with an AI narrative, the volatility of bitcoin itself can wipe out equity value when management missteps. Satsuma's story serves as a cautionary tale for companies considering similar moves.
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