Investors in Farage-backed Bitcoin venture get burnt after stock slides
Brits who bought shares in a crypto venture backed by Nigel Farage have seen their investment tumble by more than a third in the space of just three months.
In March, Farage threw his weight behind Stack BTC, an Aquis-listed Bitcoin firm, investing hundreds of thousands of pounds to become one of the company’s largest shareholders.
Shortly afterwards, Stack BTC, which also counts ex-Chancellor Kwasi Kwarteng among its backers, launched a retail offer in which members of the public were able to buy shares in the firm at 10p each.
In the three months that followed, after briefly rising to as high as 16.6p per share, the stock has since cratered to 6.4p, a tumble of 61 per cent from the peak or a fall of 36 per cent compared to the offer price. By contrast, the price of Bitcoin has only fallen by around 7.5 per cent over the same period.
But one investor who has not ended up underwater since the retail offer is Farage himself, because he was offered the shares at 5p each just days earlier, leaving his stake up 28 per cent since March.
Farage’s crypto ties under the spotlight
The Reform UK leader’s investment into Stack came under intense scrutiny in March, with commentators questioning whether it was appropriate for sitting MPs to trade shares in the London Stock Market.
In an interview with CityAM, Kwarteng defended the move.
“Twenty or thirty years ago people used to invest all the time, they were just seen as individuals who just happened to be MPs,” he said.
“I get the scrutiny but I think just because it’s unusual it doesn’t mean it’s in any way wrong or bad.”
However, it has since emerged that Farage received a £5m personal gift from crypto billionaire Richard Harborne, triggering a parliamentary investigation over his decision not to disclose the transfer to the House of Commons.
Farage has defended the gift on the grounds that it was made prior to his election to Parliament, adding that the cash had been used to cover the costs of his security.
It has also since been revealed that Farage received benefits from convicted criminal and crypto gambler George Cottrell – which he also failed to declare – including staff, security and use of a townhouse near Buckingham Palace.
An investigation by the Sunday Times found Cottrell – who was charged by US authorities over 21 counts related to money laundering, fraud, blackmail and extortion and served an eight-month prison sentence – used Reform UK business cards despite having no formal role within the party.
Farage has contested the story and has said it was unnecessary to report the benefits because Cottrell was a “personal friend.” Lawyers for Cottrell have said he was an unpaid volunteer and was using business cards to help donors and other members of the public get in touch with the Reform leader.