Falconedge Takes Off – A Vision for the Next Generation of Bitcoin Treasury Firms
“…We won’t sell our Bitcoin. The plan is to just keep holding it. It’s only going to go up in value. We’re going to grow the core business and just keep growing our Bitcoin balance sheet…”
When Roy Kashi talks about his career you understand the business he has created now is the one he wished was around when he started out a quarter of a century ago.
Twenty five years ago Kashi was involved in a ‘small’ startup hedge fund with approximately $10 million under management. It didn’t stay small for long growing to $6 billion, but the path to get there had its challenges and Kashi’s new co-founded business Falconedge provides solutions for the Kashis of today.
Falconedge helps clients with non-regulated activities which include the onerous but essential elements of compliance, structuring on advisory side, PR, marketing, capital introductions which essentially help emerging fund managers grow their businesses.
Within the first year of the company’s November IPO, Kashi is aiming for at least 20 funds to be onboarded, whilst simultaneously, if the right market opportunities present themselves, Falconedge hopes to raise capital to purchase more bitcoin.
Bitcoin and the holding of the cryptocurrency is the company’s key differentiator because Kashi views it as the best asset you can own on your balance sheet. JP Morgan and Blackrock are of the same opinion. “Instead of just sitting in cold storage we know how to generate a yield from our bitcoin,” says Kashi.
“We won’t sell it. The plan is to just keep holding it. It’s only going to go up in value. We’re going to grow the core business and just keep growing our Bitcoin balance sheet.”
And what if bitcoin falls? Kashi with his commodity trading background is familiar with cycles and isn’t phased. “If it falls, we’re comfortable with that as long as our core business is doing well and we’re self-sustaining and we have mechanisms where we can grow our Bitcoin exposure, we’re comfortable, we can buy it at cheaper prices. That’s a good thing.”
As Roy explains to Sarah Lowther in this video interview the core business without the bitcoin element has a high operating margin. The ambition? “That’s to be one of the largest hedge fund advisory businesses with a very strong Bitcoin balance sheet and being able to give back to shareholders via generating a yield on our coins that will allow us to have exponential growth, which I’m not sure any other treasury companies that I’ve seen at the moment are able to do.”
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Click here for the Falconedge IPO Investor Presentation
Follow the company on X – @FalconedgePlc
Watch Roy talk to Proactive’s Steve Darling
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The author was remunerated but does not hold shares in the company
