Key facts
- Nigel Farage has invested £215,000 in the bitcoin treasury company Stack BTC.
- Stack BTC's asset value has fallen by 15.48% since its launch in March.
- The company's investments have decreased by £565,000.
- Kwasi Kwarteng is the executive chair of Stack BTC.
- Experts caution against investing in companies endorsed by public figures due to asset volatility.
A bitcoin treasury company that Nigel Farage has invested in and promoted, Stack BTC, has experienced a significant drop in its asset value. The company's investments have fallen by 15.48%, equating to a loss of £565,000 since its launch in March. Farage himself has invested £215,000 in the firm.
The Liberal Democrats have called for a ban on Members of Parliament promoting specific financial services and products, with a spokesperson stating that people should be cautious about investments associated with Farage. While a Reform UK spokesperson clarified that Farage does not hold a brand-ambassador role, he did appear in a promotional video earlier this year.
Stack BTC's largest shareholder is Paul Withers, who also owns the gold dealer Direct Bullion. It was recently disclosed that Withers' company paid Farage £270,000 for 12 hours of promotional work. Withers holds 20.72% of Stack BTC's shares, while Farage owns 5.61%. Kwasi Kwarteng, a former Conservative cabinet minister, serves as the executive chair and holds 3.55% of the company's shares.
Farage and his party have previously advocated for cryptocurrency deregulation, including proposals for a "bitcoin reserve fund" and accepting crypto for tax payments. Farage's recent engagement with crypto has drawn scrutiny, particularly following an undisclosed £5 million gift from crypto billionaire Christopher Harborne, which is currently under standards probe.
Financial experts have voiced concerns about the volatility of assets like bitcoin. Susannah Streeter of Wealth Club highlighted that companies solely holding bitcoin lack diversification to mitigate price swings. She cautioned that endorsements by public figures can lend a false sense of legitimacy to investments. Peter Schiff advised against investing in bitcoin treasury companies, suggesting politicians promote them to gain votes from bitcoin owners. Dan Coatsworth of AJ Bell noted that Stack BTC has changed its name multiple times and has yet to demonstrate success beyond ill-timed bitcoin investments.