What One Executive Recruitment Company is Doing To Convert Earnings to Bitcoin Through M&A

Connecting Excellence Group (XCE) has signed binding Heads of Terms for its first proposed recruitment acquisition, targeting a specialist UK and U.S. recruitment business that generated £1.79 million in revenue and £431,000 in EBITDA over the last 12 months. The target holds 8,216 Bitcoin.

Deal is not closed yet and still subject to due diligence and funding, as well as a final purchase agreement. [Read XCE’s full announcement.]

Beyond the headline, the structure of the deal offers an interesting look at how an operating company can use M&A as part of a broader Bitcoin strategy.

OTCQB: XCELF) wants to acquire profitable recruitment businesses, retain much of the earnings they generate, and expand the pool of internally generated capital available for growth and Bitcoin.| OTCQB: XCELF) wants to acquire profitable recruitment businesses, retain much of the earnings they generate, and expand the pool of internally generated capital available for growth and Bitcoin.

A notable symmetry exists between the buyer and the target. Spencer Riley, XCE’s current operating business, grew revenues by 20,6% during its most recent 12-month period. Acquisition target’s revenue grew by 21.5% during the same time period.

XCE does not just want to increase its scale. It’s trying to bring profitable, growing businesses into an listed group and include Bitcoin in its balance sheet.

To Earn More Power, You Need to Acquire It

XCE expects to pay £575,000 in initial cash consideration at completion. Approximately £425,000 would settle amounts owed to the target companies by the vendors and return to the group, resulting in an estimated net cash outflow of roughly £150,000 before transaction costs.

Another £60,000 cash payment is due in 2028, while much of the remaining consideration is deferred and tied to EBITDA performance through fiscal 2029. XCE is expecting to keep between 75% and 85% of EBITDA for the business acquired during the earning-out period.

Compare that with the business being acquired: £1.79 million in trailing revenue, £1.27 million in gross profit and £431,000 in EBITDA, with revenue growing 21.5% year over year.

The goal is not to simply buy more income. XCE is trying to buy additional revenue. Powerful earning While preserving as much of the capital as possible.

If your business performs well after the completion of its project, you can use those profits to invest, buy more assets, and even purchase Bitcoin.

That is where M&A starts to become part of the Bitcoin strategy.

You can also acquire the balance sheet

Models can go beyond financial results.

XCE has the ability to create a structure that allows it to purchase cash reserves from an acquirer and change the holding of that capital once the target is in the group. In practice, that could mean raising capital to acquire £1 million of existing cash reserves and subsequently converting that reserve to Bitcoin.

The result is different from simply raising £1 million and spending it on Bitcoin. XCE will also be acquiring all the operations around the Reserve: their revenue, profits and cash-generating potential.

This deal is a good example of the exact same concept, but the goal has already been converted.

The current amount of bitcoin is 8,216 BTC.

The proposed agreement would allow XCE to purchase Bitcoins at their market value, without any premium. In exchange for the cash, XCE would add Bitcoins of equal value to its balance sheet.

Bitcoin is not free when you buy the operation. XCE exchanges cash for Bitcoin equivalents while acquiring separately the underlying revenue stream.

If the deal is completed, it would allow XCE to expand on both ends: another profitable and growing operating business, plus another 8,216 BTC in its balance sheet.

The model is based on this combination. Acquisitions can increase revenue, EBITDA as well as balance-sheet assets.

A Decentralized Acquisition Compounder

Another important aspect of the strategy is how XCE will operate its businesses following the acquisition.

The company targets owner-managed recruitment specialists that are profitable. However, it has no intention of absorbing them into one centralized brand.

Acquisitions retain the existing brand, management team and independence of operation while becoming part of a publicly traded group that is backed up by Bitcoin. This model is closer to a Bitcoin-backed decentralized acquisition compounder.

XCE’s strategy is not based on integrating and cutting costs, but rather allows businesses to continue to operate autonomously while XCE offers permanent ownership, access the group listed and centralized allocation of capital.

XCE’s business model provides a context in which to understand the kind of growth that XCE is seeking. Spencer Riley generated approximately £1.84 million in revenue during the 12 months ended June 30, up 20.6% from the prior year. Revenues for the proposed target acquisition grew similarly, by 21.5%.

If XCE is able to continue acquiring companies with similar economics the group may be able to compound their earnings by adding more streams of income without destroying those businesses. These earnings are then fed into a capital allocation system that includes Bitcoin as a potential destination.

Building Capital from More than One Source

XCE doesn’t rely on its operating profits alone to increase the Bitcoin market share. The company’s Bitcoin position was 72.94 BTC on September 1. This compares to 9.27 BTC when it went public in December 2025. The capital markets have contributed to this growth.

Adam Back, a long-time investor, recently subscribed to new XCE Shares through the transfer 10 BTC, thereby increasing the Bitcoin holdings of the company by 15%.

M&A introduces another source of potential capital alongside those transactions: earnings and balance-sheet assets acquired with the operating businesses themselves.

The model is assembled as follows:

Acquire profitable businesses → retain their autonomy and earnings power → grow group cash generation → allocate capital across further acquisitions and Bitcoin → repeat.

Adam Back is a good example of how external capital can give immediate purchasing power. Reserves can be added to the balance sheet. As long as profitable operating businesses continue to generate capital, they can keep doing so. XCE is attempting a combination of all three.

First, the Operating Economy

Bitcoin will not turn a bad acquisition into a successful one. XCE must still acquire high-quality businesses at reasonable prices to preserve earnings and effectively allocate capital. The strategy proves that. how Bitcoin can fit inside a traditional operating company You can still be connected to the core business without being disconnected.

Here, the decentralized structure plays a key role. XCE doesn’t need to be a monopoly in every company it acquires. “Bitcoin business.” Recruitment companies are able to continue servicing their clients, operate under their current brands and generate earnings. Bitcoin is used at group level, as part of a broader capital-allocation strategy.

This creates an entirely new way of thinking about Bitcoin on a corporate balance sheet.

A company may raise external capital. It can buy existing reserves, and then change their holdings. You can buy profitable businesses, and keep the money they produce. The management can allocate capital to operations, acquisitions and other corporate requirements, as well as Bitcoin. That is how XCE is using M&A to turn earnings into Bitcoin.

It is not by converting all profits into BTC automatically, but rather by creating a group of decentralized businesses capable of producing higher earnings. Bitcoin can then be used to store the money they produce.

It is more important for operators to understand how they can build businesses that generate capital.

Disclaimer: The content of this page was created by the author. Bitcoin For Corporations It is intended solely for informational purposes. The author has expressed his own opinion, and it should not be regarded as investment advice. This article does not constitute an invitation or offer to buy, sell or subscribe any financial products or securities.