Author: CryptoSlate

Translation: Deep Tide TechFlow

Deep Tide Reading: Satsuma Technology has become the first treasury company in Europe to potentially liquidate its Bitcoin holdings. This vote not only determines the fate of 668 BTC but also exposes the fatal flaws of the treasury company model—when the stock price trades at a long-term discount, the belief in holding coins can be crushed by liquidation pressure. For investors, this is an excellent sample to observe how long the "never sell" commitment can last in a bear market.

Satsuma Technology missed the final proxy voting deadline today; the proposal plans to sell all the Bitcoin held by the company and delist from the London Stock Exchange.

The next decision point will be the shareholders' meeting on July 20.

If both special resolutions are approved, the company will initiate the process to sell all Bitcoin, return net cash, and cancel its London Stock Exchange listing. As of June 30, the company holds 668.48 BTC.

Both special resolutions require at least 75% voting support and are mutually conditional—if either fails, the capital return and delisting will be blocked. The deadline applies to paper, online, and CREST proxy voting; eligible shareholders can still vote in person at the meeting on July 20.

The proposal was put forward by shareholders who hold more than 20% of Satsuma's issued share capital, and the board agreed to include it on the agenda without a formal application. Of the six-member board, four directors recommended rejecting the proposal, while two supported it.

Trading was suspended at 7:30 AM on July 1, due to unresolved voting preventing Satsuma's directors and auditors from timely assessing the company's prospects, which led to the inability to publish audited accounts before June 30. The company expects to complete the accounts by the end of the month and expressed hope to resume trading after receiving approval from the Financial Conduct Authority.

Satsuma's June 30 financial statement shows that its 668.48 BTC is valued at £29.44 million, with total net asset value of £33.23 million. The report indicates a price-to-net-asset ratio of 0.80 times, with no debt or other significant liabilities, and an average cost per BTC of £84,026, with an unrealized loss per coin of £39,984 at that time.

Based on the Bitcoin price of £48,372.69 on July 16 according to CryptoSlate, the value of the holdings as of June 30 is approximately £32.34 million. This is not a distribution estimate but clearly presents the choice: to retain a listed company trading below coin value or seek to liquidate after deducting costs.

A Bitcoin treasury company once said never to sell—bear markets quickly changed that commitment

If both votes are approved and obtain the remaining approvals, the company's indicative timeline requires selling all Bitcoin around August 3, and issuing one non-tradable Class B share for each ordinary share around August 4.

After deducting the £2 million operating cash reserve and transaction and termination costs, the cash from the sale will be distributed to Class B shareholders. The court confirmation hearing is expected to be held on September 8, delisting on September 14, and payments to be completed by September 28. All dates are conditionally executed.

An American Bitcoin treasury company sold all its BTC as debt and pressure from Nasdaq became unsustainable

If either vote fails, the proposal will neither trigger the sale of Bitcoin nor result in delisting. Satsuma stated that it will continue its treasury strategy, and the trading halt will depend on the publication of accounts and approval from the Financial Conduct Authority.

The same price, vastly different returns

Satsuma's update on July 3 separates former CLN1 and CLN2 convertible loan holders, as the proposed pro-rata allocation will yield returns that are completely different from original investments. In a scenario where Bitcoin is priced at $59,923, the returns for every £100 are as follows:

These figures are for illustrative purposes only and are not predictions. They deduct estimated transaction costs and the £2 million operating cash, assuming original CLN holders still hold their shares, and deducting approximately £3.2 million of exercise proceeds in the case of the CLN1 warrants.