The regulatory landscape in the UK is currently somewhat challenging for a listed company that sees the opportunity in holding Bitcoin in treasury running alongside a core business, but that's exactly what Coinsillium are doing.

In fact, it's not disimilar to that of Strategy (formerly MicroStrategy), Micheal Saylor's renowned NASDAQ listed company that listed in August 2020 and has outprformed every stock in the S&P500 since, with a share price gain of some c.2,500%

As of May 2025, over 200 companies and institutions globally have adopted a Bitcoin treasury strategy, holding Bitcoin on their balance sheets as a reserve asset. This group includes public and private companies, ETFs, funds, and government entities. either independently or alongside a core business.

It's a growing trend and for good reason.  Bitcoin by design with its finite supply is 'designed' to increase in value, love it or hate it, It's becoming a recognised global store of wealth and an inflation hedge in a Geopolitical climate of FIAT currency debasement.  As of May 2025, the United States government has initiated steps to incorporate Bitcoin into its national reserves, essentially silo'ing Bitcoin - if that's not bullish!

Eagle-eyed investors may have spotted that AQUIS listed company, 'The Smarter Web Company' has 10 bagged in little over a month.  Why?  The company, is a web design agency at heart but its decision to store Bitcoin in Treasury, receive payment in Bitcoin and its recent purchase of Bitcoin has attracted attention of speculative investors that want exposure to Bitcoin via a listed company at an early stage.

Why not just buy Strategy ?

It's a good question and the answer is two-fold.  

1. Strategy is established and re-cycles money into Bitcoin via issue of debt/equity etc when it trades at a premium to its NAV (Net Asset Value).  They call it 'accretive dilution'.  It's a pretty simple model, find more money and buy more Bitcoin. Strategy's valuation has matured however and so you're not really early to the party as opposed to say new companies such as Coinsillium that will follow a similar but not exactly the same model and that leads us on to 'differentiation'
2. Differentiation:  Coinsillium's model is essentially, Yield, Stack, Convert. So rather than just issue debt/equity to buy more treasury Bitcoin (which by the way they can still do), the company will leverage its Web3 expertise incorporating Defi yield generation, to make it's crypto work, utilising Otomato's yield generation strategies, they call it, Bitcoin Treasury 2.0

So about Coinsillium...

Core Business

Before we take a look at Forza, the heart of Coinsillium's Bitcoin Treasury Strategy, there is a core business worth noting.  

Coinsillium are a Crypto Investor, Advisor and venture builder at the forefront of Web3 and AI convergence, what is that? 

Web3 if you dont know is essentially the next evolution of the Internet.  I'll not go into massive detail here but just know that it is decentralized, user-controlled, and built on blockchain technology with the aim of making the Internet more open and accessible. 

For example, say you are an artist or writer, you may sell your work and receive payment in tokens, tokens that may be stablecoins or can be converted back into stable coins etc.  Another example would be the Metaverse, immersive virtual spaces with digital economies.  It's hard to visualise now but it's coming! 

Along this theme, Coinsillium have an active portfolio of digital investments ranging from AI initiatives to DeFi (de-centralised finance applications). The portfolio is a product of either straight forwards equity investment by Coinsillium into projects like Yellow or via advisory services whereby Coinsillium receive 'success-case' rewards such as Bitcoin, Crypto or notably project tokens, the latter which can be very lucrative on wider adoption or success of the project, or a combination of both.

Yellow

Yellow is a project of significant note and one the company is very excited about as an early investor, investing US$200,000 in the project.

The Yellow Network (“Yellow”), is a Layer-3 decentralised clearing network for cryptocurrency trading infrastructure, in which the company holds a vested interest via a Simple Agreement for Future Tokens (SAFT).  In fact since the Coinsillium investment, Yellow announced a USD 10 million seed round led by Chris Larsen, Ripple Co-Founder, at a valuation exceeding USD 200 million — a significant uplift from Coinsilium’s entry point.

As reported just a week or so ago in this news release a significant return on that investment could be close given the Yellow token launch is projected to happen within the next two months.

The company basically have their foot, well in the door of the Industry working with big names and have a number of influential strategic advisors such as Kevin Follonier host of an influential podcast and the likes of James Van Stratten, a rising 'thought-leader' in Bitcoin and digital asset strategy, whilst also a respected senior analyst at CoinDesk. 

The core business alone, contributes significantly to the current company valuation but the 'icing on the cake' and where what I call 'speculation valuation' could really take hold, is in how the company will manage and grow its Bitcoin Treasury via Forza, so lets talk about that.

Forza  - Bitcon Treasury 

This is the main event of this blog and for good reason, it could well be the driving force for Coinsillium's valution going forwards, especially when you consider the likes of the Smarter Web Company has shot up to over £50M from c.£3m IPO, largely driven by its Bitcoin Treasury strategy, but I reckon Coinsillium trumps that with its yeild generation strategy and the future implications for Forza which could well become a spun-off entity in its own right when the UK regulatory landscape allows - and it surely will?

Forza is a Gibraltar- registered and wholly owned subsidiary of Coinsilium, and has been established to manage the Group’s cryptocurrency treasury and strategy.  The primary reason for locating in Gibraltar is the clarity of the regulatory landscape as opposed to the regulatory challenges and reporting here in the UK.  This means for example, that as a wholly owned subsidiary of Coinsillium, Forza can report back to the company on its performance independently, in turn allowing Coinsillium to report providing transparency to the UK market and investors.  It shouldnt have to be that way, but it is for now!

Yield, Convert, Stack

At the heart of Forza's strategy to build Bitcoin treasury is the process Yeild, Convert, Stack.

Essentially, the company will deploy stablecoins into curated DeFi protocols using Otomato's automated yield technology.  Otomato is a non-custodial Web3 automation platform that leverages AI-driven agents to optimize yield strategies across decentralized finance (DeFi) protocols.  Think of it like trading, moving the money to where the highest yeilds can be achieved. 

The yields can then be converted from stablecoins back into Bitcoin and held in treasury.  It's a recursive process and allows the company to balance Bitcoin holdings with yield opportunities to meet the over-arching goal of increasing its Bitcoin treasury holdings over the longer-term, like Strategy.

This is the 'Differentiator' we spoke about when discussing Strategy earlier, it's how you obtain the cash to build your Bitcoin and Coinsillium's approach allows the company to adjust it's Bitcoin holdings as opportunities present themselves but as previously explained the long-term strartegy is to build the Bitcoin holding.  

The company are also well aware of risk too and their strategy will be to manage the treasury in a risk adjusted manner, reducing exposure to Bitcoin price volatility.

Investment Thesis 

Before we discuss this, it would be prudent to acknowledge that investing in a small cap company carries risks and one that is heavily involved in crypto could be viewed as even higher risk, however, the company has a core business in what is is expected to be an exponential growth market, independent of its Crypto holdings.

Investors here in the UK cannot gain exposure to Crypto derivatives under FCA rules meaning you can really only buy spot Bitcoin/Crypto or Strategy.  Coinsillium changes this, with its clever set-up, you or I can invest in the company (which has a core business, and high potential one at that), whilst quietly enjoying the exposure to the Bitcoin in treasury which will continue to grow as they yield, convert, stack, not to mention gain exposure to other crypto projects along the way that you or I wouldn't necessarily understand but could generate significant yield and returns either by staking or token value appreciation.

Given what we are seeing with other Small Cap companies such as The Smarter Web Company and numerous others in the US, employing Strategy's Bitcoin treasury approach, Coinsillium could well follow suit especially as it has an interesting mechanism to generate Bitcoin others don't and provides UK investors with exposure to Bitcoin FX free through our own investment ISAS/trading accounts etc.

It's quite possible as the rest of the world follows the US and other countries in creating strategic Bitcoin reserves that the UK will follow suit and if that happens they'll have to change the regulatory landscape to make the likes of Coinsillium and its subsidiary Forza more accessable whereby Forza iteslf could be spun-out of Coinsillium and become its own beast.  That could be a significant pay-day for Coinsillium investors whether it be via a new shareholding in Forza or something like a one-off divi payment, who knows, but in any case, buying Coinsillium today provides you with exposure you cant really get elsewhere, you just need to be a crypto bull I guess!