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Mode raises £6 million from private placing

Mode raises £6 million from private placing

LSE-listed fintech Mode has raised £6 million in fresh capital on an oversubscribed placement of 10,909,091 new ordinary shares at a price of £0.55p each.

Established by Jonathan Rowland, co-founder and director of UK challenger Redwood Bank, Mode is one of the first companies with a consumer-facing bitcoin offering to list on the LSE Main Market. The Mode app enables users to buy, sell and hold sterling and euro, as well as bitcoin.

The company raised £7.5 million from its London listing in October of last year, and immediately allocated up to ten percent of its cash reserves to purchase bitcoin and adopt it as a treasury reserve asset. Mode has seen the valuation of its bitcoin reserve skyrocket in the intervening period.

The firm says the new cash will be used to power a push into Open Banking and develop a loyalty and rewards engine for its mobile customers base, including a bitcoin rewards option.

Mode adds that it will also extend its holdings in bitcoin to maintain its treasury position at 10% of total cash reserves.

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