REG - Falconedge PLC - Bitcoin Purchase

Bluesky Digital AssetsAnnouncement

07/11/2025 08:15

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RNS Number : 5546G  Falconedge PLC  07 November 2025

7 November 2025

Falconedge plc

 ("Falconedge" or "the Company")

 

Bitcoin Purchase

 

Falconedge plc (Ticker: EDGE), provider of turnkey advisory solutions for
asset and fund managers with currently 5 retained clients, is pleased to
announce that it has bought 15.162582280 Bitcoin as part of its treasury
management for its underlying advisory business. The Company will utilise its
Bitcoin to earn low risk compounding yield through diversified financial
mechanisms.

·    Number of Bitcoin Purchased: 15.162582280 Bitcoin

·    Average Purchase Price: £ 79,109.22 per Bitcoin (Approx.
$103,553.97 per Bitcoin)

·    Amount Purchased: £1,199,500.00

 

For further information please contact:

Roy Kashi, Chief Executive
Officer                           +44 203 827 0279

AlbR Capital Limited (Aquis Corporate Adviser)

Guy Miller / Faisal Rajeh
                         +44 207 469 0930

 

The Directors of the Company accept responsibility for the contents of this
announcement.

 

About Falconedge

Falconedge provides advisory solutions for emerging and established asset
managers, empowering clients to scale their operations and navigate regulatory
complexities to support sustainable growth.

Falconedge offers AI powered marketing, media, and technology services,
specialising in brand and digital strategy, including:

•           Operational Optimisation: Boosting efficiency by
streamlining operations and             implementing best
practices

•           PR & Marketing: Crafting compelling narratives and
materials to communicate funds' value propositions

•           Digital Presence: Expanding reach and attracting
potential clients through professional networks, Falconedge serves a diverse
client base

•           Provision of ad hoc support to clients following
establishment of funds: Supporting clients after their launch of new funds and
connecting them with FIM who has expertise in both setup and regulatory
requirements

•           Compliance: Helping funds stay ahead of regulations
with expert legal and compliance guidance

•           Risk Management: Empowering funds' decision-making
with strategic risk management solutions2

•           CRM Systems: Assisting clients by connecting them with
customer relationship management (CRM) providers who can help enhance client
engagement with (CRM) solutions

•           IT Infrastructure support: Assisting clients by
connecting them with IT solution providers who can help strengthen fund
operations with seamless and secure IT solutions

•           Analysis: Leveraging the Company's insights to refine
strategies and drive sustained growth

Risk relating to Digital Assets

The Company's Digital Assets treasury management strategy exposes the Company
to various risks associated with Digital Assets. Digital Assets such as
Bitcoin are volatile and fluctuations in the price of such Digital Assets are
likely to influence the Company's financial results and the market price of
the Ordinary Shares. In addition to this, Bitcoin and other Digital Assets are
subject to significant legal, commercial, regulatory and technical uncertainty
which increases the inherent risk of material adverse effects on the Company's
strategy of storing capital effectively and preserving value.

The Company intends to hold treasury reserves and surplus cash in Bitcoin and
potentially other Digital Assets. Bitcoin is a type of cryptocurrency or
cryptoasset. Whilst the Board of Directors of the Company considers holding
Bitcoin to be in the best interests of the Company, the Board remains aware
that the financial regulator in the UK, the FCA, considers investment in
Bitcoin to be high risk. It is important to note that an investment in the
Company is not an investment in Bitcoin, either directly or by proxy. However,
the Directors consider Bitcoin to be an appropriate store of value and growth
for the Company's reserves and, accordingly, the Company is materially exposed
to Bitcoin. Such an approach is innovative, and the Directors wish to be clear
and transparent with prospective and actual investors in the Company on the
Company's position in this regard.

The Company is neither authorised nor regulated by the FCA and
cryptocurrencies (such as Bitcoin) are unregulated in the UK. As with most
other investments, the value of Bitcoin can go down as well as up, and
therefore the value of the Company's Bitcoin holdings can fluctuate. The
Company may not be able to realise its Bitcoin exposure for the same as it
paid in the first place or even for the value the Company ascribes to its
Bitcoin positions due to these market movements. And because Bitcoin is
unregulated, the Company is not protected by the UK's Financial Ombudsman
Service or the Financial Services Compensation Scheme.

 

            Operating company with Bitcoin treasury model

            Although the Company is a professional fund advisory
business, and the management of the Company believes it offers a
differentiated value proposition that combines its core advisory related
operations with Bitcoin treasury exposure, investors may nevertheless
erroneously view an investment in the Company primarily as a Bitcoin
investment vehicle. They may choose to invest in alternative Bitcoin products
for various reasons, including: (i) preference for "pure play" Bitcoin
exposure without operational business risks; (ii) different tax treatment or
regulatory structure; (iii) enhanced liquidity or trading characteristics;
(iv) lower fees or expense ratios; or (v) different levels of transparency
regarding Bitcoin holdings and net asset value calculations.

Unlike Bitcoin investment vehicles, the Company: (i) does not seek to track
the value of Bitcoin or provide daily transparency regarding its Bitcoin
holdings; (ii) is subject to the operational risks and capital allocation
decisions of a diversified consultancy business; (iii) may use Bitcoin
holdings for strategic purposes beyond pure investment returns; (iv) is
subject to different regulatory requirements as an English domiciled
consultancy company rather than an investment vehicle; and (v) may face
conflicts between optimising Bitcoin returns and pursuing the Company's core
business objectives. If the Company's combined business model is viewed
favourably relative to pure Bitcoin exposure, the securities of the Company
may trade at a premium. However, the market's sentiment relating to Bitcoin
from time to time, the Bitcoin's valuation from time to time as well as to the
Company's Bitcoin treasury strategy may increase the volatility of the
Company's share price and could result in the Company's securities
underperforming.

The Company's ability to expand its Bitcoin holdings relies heavily on raising
equity and/or debt financing. If funds are unavailable or needed for operating
costs or any interest costs instead, the Company may be unable to effectively
grow its Bitcoin treasury. If the Company's cash flow were to become
insufficient to pay any debt obligations, then this could lead to default and
forced sale of the Company's assets.

The Company anticipates that a significant portion of its assets will be
concentrated in its Bitcoin holdings at any given moment in time. The
concentration of assets in Bitcoin limits the Company's ability to mitigate
risk that could otherwise be achieved by holding a more diversified portfolio
of treasury assets.

In addition, the Company has sought legal and regulatory advice from a leading
English law firm as to its status under English financial regulation. As at
the date of this document, the advice received is that the Bitcoin related
activities of the Company should not require the Company to need to be
authorised by, regulated by or otherwise registered with the FCA in the UK.
Equally, the Company should not be considered an "alternative investment fund"
for such regulatory purposes. In seeking such advice, the senior management of
the Company has sought to act reasonably but understand that this is a largely
untested area of a potentially complex and politically sensitive area of law
and regulation in the UK. Accordingly, there can be no guarantee that the
relevant regulatory authorities will agree with such conclusions. Any such
development in this regard could adversely impact the Company.

            Security of the Company's data and Bitcoin

The Company is subject to a number of laws relating to privacy and data
protection, including the UK's Data Protection Act 1988 and the Privacy and
Electronic Communications (EC Directive) Regulations 2003 and the EU General
Data Protection Regulation (GDPR). Such laws govern the Company's ability to
collect, use and transfer personal information relating to its customers as
well as its employees Despite controls to protect the confidentiality and
integrity of customer information, the Company may breach restrictions or may
be subject to attack from computer programmes that attempt to penetrate its
network security and misappropriate confidential information.

Any perceived or actual failure to protect confidential data could harm the
Company's reputation and credibility, reduce its sales, reduce its ability to
attract and retain customers or result in litigation or other actions being
brought against it or the imposition of fines.

Bitcoin is controllable only by the possessor of both the unique public key
and private key(s) relating to the local or online digital wallet in which the
Bitcoin is held. While the Bitcoin blockchain ledger requires a public key
relating to a digital wallet to be published when used in a transaction,
private keys must be safeguarded and kept private in order to prevent a third
party from accessing the Bitcoin held in such wallet. To the extent the
private key(s) for a digital wallet are lost, destroyed, or otherwise
compromised and no backup of the private key(s) is accessible, neither the
Company nor its custodians will be able to access the Bitcoin held in the
related digital wallet. The Company cannot guarantee that its digital wallets,
nor the digital wallets of its custodians held on its behalf, will not be
compromised as a result of a cyberattack. The Bitcoin and blockchain ledger,
as well as other digital assets and blockchain technologies, have been, and
may in the future be, subject to security breaches, cyberattacks, or other
malicious activities.

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