Stack BTC Seeks $16M Gold Dealer Acquisition to Fund Bitcoin Purchases

Stack BTC, a publicly traded company focused on accumulating Bitcoin, has announced plans to acquire London-based precious metals dealer Direct Bullion for up to $16 million. The deal's centerpiece is a 'dual-engine' business model, where the gold dealership's cash flow is used to purchase more Bitcoin.

The acquisition structure involves three layers: £3 million in cash from Stack's existing reserves, approximately £4 million in newly issued shares priced at 6p each and locked up for four years, and an earn-out component worth up to £5 million contingent on Direct Bullion hitting specific EBITDA targets.

The earn-out accounts for nearly 42% of the deal's maximum value, providing some downside protection if the gold dealer's numbers soften after the acquisition closes. The related-party nature of the deal due to Paul Withers' control of both companies triggers additional regulatory approvals and due diligence requirements.