Nigel Farage's Promoted Bitcoin Firm Loses 15% of Value: Finance Experts Warn Investors

A bitcoin company promoted by Nigel Farage has lost over 15% of its asset value, prompting finance experts to warn against investing in such firms. The Reform UK leader invested £215,000 in Stack BTC, a bitcoin treasury company that buys cryptocurrency on behalf of shareholders. Since its launch in March, the company's investments have fallen 15.48%, a loss of £565,000.

The Liberal Democrats have called for a ban on MPs promoting specific financial products, stating: "People should be cautious about buying shares in Farage. His stock is only heading one way." A Reform spokesperson said Farage does not have a brand-ambassador role but simply bought shares. However, Farage appeared in a promotional video spending £2 million of the company's money on bitcoin.

Key figures involved:

• Paul Withers, owner of Direct Bullion, is the largest shareholder with 20.72%.
• Farage holds 5.61%.
• Kwasi Kwarteng, former Conservative chancellor, is executive chair with 3.55%.

Farage and Reform UK have called for deregulation of cryptocurrency and proposed a "bitcoin reserve fund." His interest in crypto came under scrutiny after receiving a £5 million undisclosed gift from crypto billionaire Christopher Harborne, leading to a standards probe.

Expert warnings:

• Susannah Streeter (Wealth Club): "Such a steep fall shows how brutally volatile these assets remain... companies that simply stack up bitcoin holdings have no diversification cushion."
• Peter Schiff: "I like Nigel Farage, but I would advise against investing in any bitcoin treasury company."
• Dan Coatsworth (AJ Bell): "Stack BTC has changed its name multiple times... a red flag."

Lisa Smart MP (Lib Dem): "It's a disgrace that whilst the country grapples with the cost of living crisis, Nigel Farage is busy encouraging people to put money into highly risky crypto investments."

Stack BTC declined to comment.