Nigel Farage, the Reform UK leader facing a standards probe over an undeclared £5m gift from a crypto billionaire, is the second largest shareholder in Stack BTC, a bitcoin treasury company he has advertised. The company lost more than 15% of its asset value since its launch in March, prompting finance experts to warn investors against such firms.
Stack BTC's Performance and Farage's Investment
Farage has invested £215,000 in Stack BTC, which buys cryptocurrency on behalf of shareholders and aims to purchase other companies with the increased value from holding bitcoin. However, the company's investments fell 15.48% since March, amounting to a loss of £565,000. The Liberal Democrats have called for a ban on MPs promoting specific financial services, stating, “People should be cautious about buying shares in Farage. His stock is only heading one way.”
Farage's Role and Promotional Activities
A Reform spokesperson clarified that Farage does not have a brand-ambassador role at Stack BTC but simply bought shares. Nonetheless, Farage appeared in a promotional video earlier this year where he spent £2m of the company's money on bitcoin. The largest shareholder is Paul Withers, who also owns Direct Bullion, which paid Farage £270,000 for 12 hours of promotional work. Withers holds 20.72% of Stack BTC shares, followed by Farage at 5.61%, giving both voting rights. Former Conservative chancellor Kwasi Kwarteng serves as executive chair, owning 3.55%.
Regulatory Scrutiny and Expert Warnings
Farage and Reform UK have called for cryptocurrency deregulation, proposing a bitcoin reserve fund and allowing HMRC to accept crypto for taxes. Farage's crypto interests have drawn scrutiny after he received an undisclosed £5m gift from crypto billionaire Christopher Harborne, leading to a standards probe. Susannah Streeter, chief investment strategist at Wealth Club, warned: “Such a steep fall in value shows just how brutally volatile these assets remain and companies that simply stack up bitcoin holdings have no diversification cushion.” She cautioned against investments endorsed by public figures, noting it can give a “veneer of legitimacy the underlying asset doesn’t deserve.”
Further Expert Opinions
Peter Schiff, the US stockbroker who predicted the 2008 crash, said: “I like Nigel Farage, but I would advise against investing in any bitcoin treasury company,” adding that politicians promote these firms to court bitcoin owners. Dan Coatsworth, head of markets at AJ Bell, highlighted red flags: “Stack BTC has changed its name multiple times… So far, Stack BTC has nothing to show but a series of ill-timed bitcoin investments.” Lisa Smart MP, Lib Dem Cabinet Office spokesperson, condemned Farage for encouraging risky crypto investments during a cost of living crisis, urging a ban on MPs promoting financial products. Stack BTC declined to comment.
