Bitcoin Magazine
How One Executive Recruitment Firm Is Using M&A to Turn Earnings Into Bitcoin
Connecting Excellence Group (XCE) has entered into binding Heads of Terms for its initial recruitment acquisition, aiming at a specialized UK and U.S. recruitment firm that brought in £1.79 million in revenue and £431,000 in EBITDA over the past 12 months. Additionally, the target company holds 8.216 Bitcoin.
The transaction has not yet been finalized and remains contingent on additional due diligence, financing, and a definitive purchase agreement. [Read XCE’s full announcement.]
Beyond the initial announcement, the mechanics of the agreement offer a compelling look at how an operating business can integrate M&A into a wider Bitcoin strategy.
XCE (AQSE: XCE | OTCQB: XCELF) aims to buy profitable recruitment agencies, keep a large share of the profits they produce, and broaden the supply of internally generated capital available for expansion and Bitcoin acquisitions.
There is also a striking parallel between the buyer and the target. XCE’s current operating venture, Spencer Riley, increased its revenue by 20.6% over its most recent 12-month period, while the prospective acquisition target expanded its revenue by 21.5% over the same timeframe.
Rather than merely seeking scale, XCE is working to purchase growing, profitable enterprises and incorporate them into a public group that holds Bitcoin on its balance sheet.
Acquiring Earnings Power
XCE plans to disburse £575,000 in initial cash consideration upon completion. Roughly £425,000 will settle debts owed by the target companies to their vendors and flow back to the group, resulting in an estimated net cash expenditure of about £150,000 before accounting for transaction costs.
An additional cash payment of £60,000 is scheduled for 2028, with the bulk of the remaining consideration deferred and linked to EBITDA performance through fiscal year 2029. XCE anticipates keeping roughly 75% to 85% of the acquired firm’s total EBITDA throughout the earn-out phase.
Consider this against the metrics of the acquired firm: £1.79 million in trailing revenue, £1.27 million in gross profit, and £431,000 in EBITDA, accompanied by a year-over-year revenue growth rate of 21.5%.
The objective extends beyond simply purchasing more revenue. XCE is striving to secure added earnings power while safeguarding as much capital as possible.
Should the business maintain its post-completion performance, those earnings provide another stream of capital that can be redirected toward reinvestment, further acquisitions, and Bitcoin.
This is where M&A begins to function as an engine for the Bitcoin strategy.
Acquiring the Balance Sheet, Too
This operational model reaches beyond top-line revenue and earnings.
When an acquisition target possesses cash reserves, XCE can structure the deal to purchase those reserves from the seller and subsequently alter how that capital is stored once it is integrated into the group. Practically speaking, this might involve raising capital to acquire £1 million in pre-existing cash reserves and later converting those reserves into Bitcoin.
The outcome differs from simply raising £1 million and spending it directly on Bitcoin. In this scenario, XCE also acquires the underlying operating business attached to those reserves, gaining its revenue, earnings, and future cash-flow potential.
The current proposed transaction serves as a direct illustration of this principle, except the target company has already executed the conversion itself.
It holds 8.216 BTC.
Under the outlined terms, XCE would buy this Bitcoin at fair market value without paying any premium. The cash disbursed will match the equivalent value of the Bitcoin transferred onto XCE’s balance sheet.
Thus, the Bitcoin is not being obtained for free alongside the operating business; rather, XCE is trading cash for an equivalent amount of Bitcoin while simultaneously acquiring the underlying revenue stream.
If finalized, however, the deal will expand both facets of XCE simultaneously: bringing in another expanding, profitable operating entity alongside an additional 8.216 BTC on its balance sheet.
This dual acquisition is central to the overall model, allowing a single transaction to potentially boost revenue, EBITDA, and balance-sheet assets all at once.
A Decentralized Acquisition Compounder
How XCE plans to manage these companies post-acquisition represents another critical component of the strategy.
The firm targets profitable, owner-led specialist recruitment agencies, but it has no intention of folding them into a single, centralized corporate brand.
The acquired businesses will keep their individual names, management teams, and operational freedom while becoming part of a publicly traded parent group anchored by a Bitcoin treasury. This positions XCE’s model closer to a decentralized acquisition compounder.
Rather than forcing value creation primarily through integration and aggressive cost-cutting, the strategy relies on letting individual enterprises run autonomously while XCE provides lasting ownership, access to public markets, and centralized capital allocation.
XCE’s current operations offer insight into the growth profile it seeks to add. Spencer Riley brought in roughly £1.84 million in revenue for the 12 months leading up to June 30, marking a 20.6% increase from the previous year. The prospective acquisition target expanded at a comparable pace, with revenue climbing by 21.5%.
If XCE can maintain a pipeline of acquisitions with similar economic fundamentals, the group can compound by adding fresh earnings streams without dismantling the companies that generate them. Those earnings then feed into a unified capital allocation system where Bitcoin serves as one potential destination.
Building More Than One Source of Capital
XCE does not depend solely on operating income to expand its Bitcoin holdings. The company reported holding 72.94 BTC as of September 1, up from 9.27 BTC at the time of its December 2025 IPO, driven in part by capital markets activities.
Most recently, longtime backer Adam Back subscribed to new XCE shares by transferring 10 BTC to the enterprise, increasing its Bitcoin reserves by 15.9%.
M&A introduces an additional avenue for potential capital alongside these transactions: earnings and balance-sheet assets acquired directly alongside the operating businesses.
Taken together, the operational model follows this framework:
Acquire profitable businesses → retain their autonomy and earnings power → grow group cash generation → allocate capital across further acquisitions and Bitcoin → repeat.
External capital offers immediate purchasing power, as illustrated by the Adam Back transaction. Acquired reserves bolster balance-sheet capital, while profitable operating companies continue to throw off cash as long as they perform. XCE is attempting to harness all three elements.
The Operating Economics Come First
Bitcoin cannot salvage a poorly structured acquisition. XCE must still identify quality businesses at sensible valuations, safeguard their earning capacity, and deploy the resulting capital wisely. Even so, the strategy demonstrates how Bitcoin can be integrated into a traditional operating company without becoming detached from the underlying business fundamentals.
The decentralized structure is vital here. XCE does not require every acquired firm to operate as a “Bitcoin business.” The recruitment agencies continue serving their clients, maintaining their established brands, and producing earnings, while Bitcoin sits at the corporate group level as part of a broader capital allocation plan.
This establishes a fresh perspective on holding Bitcoin on a corporate balance sheet.
The firm can raise outside capital, acquire pre-existing reserves and alter how they are stored, and buy profitable businesses while keeping the cash they generate. Management can subsequently distribute capital among operations, future acquisitions, other corporate needs, and Bitcoin. That is how XCE leverages M&A to channel earnings into Bitcoin.
This is achieved not by automatically converting every pound of profit into BTC, but by assembling a decentralized network of profitable enterprises capable of producing steady earnings and making Bitcoin one designated home for the capital they create.
For business operators, this may pose the more compelling question: not simply how to secure extra capital to purchase Bitcoin, but how to construct an enterprise capable of generating more capital in the first place.
What is XCE’s acquisition strategy?
XCE acquires profitable, owner-managed recruitment businesses, allowing them to keep their brand and autonomy while feeding earnings into a group-level Bitcoin and growth strategy.
How much did the target business generate?
The UK and U.S. recruitment target generated £1.79 million in revenue and £431,000 in EBITDA over the trailing 12 months, along with 8.216 Bitcoin.
How does Bitcoin fit into XCE’s corporate structure?
Bitcoin is held at the parent group level as part of a capital allocation framework, while the underlying subsidiaries continue normal operations under their own brands.
