Connecting Excellence Group Makes First Bitcoin-Funded Acquisition

Connecting Excellence Group (AQSE:XCE), a Bitcoin-backed recruitment firm, has completed its first acquisition, marking a shift from planning to execution. The company has acquired James Gray Recruitment and James Gray Engineering, adding £1.79 million in revenue and £431,000 in EBITDA for the year ending June 2026. The deal is structured to minimize upfront cash outlay, with most of the payment deferred and tied to future EBITDA performance through 2029.

The acquisition is a test of XCE’s unique model, which aims to acquire profitable, owner-managed recruitment companies while leaving their brands and management intact. James Gray, specializing in construction and engineering recruitment, retains its founders in operational roles while gaining access to a listed platform. The deal includes 8.216 Bitcoin, valued at £531,223, bringing XCE’s total Bitcoin holdings to 81.157 BTC, worth about £5.25 million as of October 2.

XCE’s strategy targets a highly fragmented recruitment market, with an estimated 1,000 owner-managed businesses in Britain and around 10,000 worldwide. The company’s model combines recruitment cash flow, a Bitcoin treasury, and public market financing to fund acquisitions. However, the strategy carries risks, including the cyclical nature of recruitment and the volatility of Bitcoin.

To expand its financing capacity, XCE has secured a revolving facility of up to $1.5 million from BitGo, secured against part of its Bitcoin holdings. This provides firepower for future acquisitions but introduces balance-sheet risk due to the volatility of Bitcoin. The success of the model will depend on whether XCE can repeat this acquisition strategy across the fragmented market.