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.