Nigel Farage takes £215k stake in Kwasi Kwarteng’s Bitcoin business

Nigel Farage has bought a stake in a cryptocurrency company run by former chancellor Kwasi Kwarteng.

The Reform UK leader has invested £215,000 in Stack Bitcoin, a London-listed crypto company building a Bitcoin treasury.

Stack is chaired by Mr Kwarteng, who oversaw a mini-Budget that triggered market chaos during his 38 days as chancellor under prime minister Liz Truss.

Mr Farage has acquired a 6.3pc stake as part of a broader £260,000 fundraising round that values the company at around £3.4m.

Stack, which plans to acquire businesses and reinvest their earnings into Bitcoin, also secured funding from Blockchain.com, the Bitcoin wallet provider that registered as a crypto asset business with the Financial Conduct Authority earlier this year.

Stack said it will work closely with the new investor on developing its Bitcoin treasury strategy.

Mr Farage has been a vocal advocate of Britain’s crypto industry, arguing that outdated financial rules were holding back the economy.

Last year, Mr Farage branded Bank of England officials “dinosaur bureaucrats” who were stifling growth by curbing cryptocurrency ownership.

Reform has started accepting crypto donations and last year received £12m from Christopher Harborne, a British Bitcoin investor based in Thailand.

The party has vowed to turn Britain into a “crypto hub” by slashing capital gains tax on digital assets, accepting tax payments in cryptocurrencies and creating a sovereign Bitcoin reserve.

Mr Farage said: “I have long been one of the UK’s few political advocates for Bitcoin, recognising the role digital currencies will play in the future of business and finance.

“London and the UK have historically been the centre of the world’s financial markets, and I believe that we can and should be a major global hub for the crypto industry.”

Mr Kwarteng said he was “absolutely delighted” by the Reform UK leader’s investment.

He added: “Nigel’s unwavering support for British business and belief that Bitcoin is set to rapidly expand its role in finance is perfectly aligned with the company’s ethos and business plans.”

But Mr Farage’s investment, which was made through his company, Thorn in the Side, risks triggering further scrutiny from MPs who have called for a ban on political donations in cryptocurrencies amid fears of foreign interference in elections.

The Labour Party has urged the electoral watchdog to launch an investigation into Reform, saying the party has “serious questions to answer” over its crypto donations.

Stack, which is listed on London’s Aquis Exchange, holds 21 Bitcoin worth just over £1m.