Connecting Excellence Group signs first acquisition deal to convert recruitment earnings into Bitcoin

Connecting Excellence Group (XCE) signs binding Heads of Terms for its first recruitment acquisition, targeting a UK and U.S. business with £1.79 million in revenue and 8.216 Bitcoin. XCE employs a decentralized acquisition compounder model, allowing acquired brands to operate independently while retaining 75% to 85% of their EBITDA. This strategy expands XCE's operating earnings and grows its corporate Bitcoin treasury, which reached 72.94 BTC as of September 1, 2026.

XCE first recruitment acquisition

• ▪The proposed acquisition target of Connecting Excellence Group grew its revenue by 21.5% over the latest 12-month period, generating £1.27 million in gross profit.
• ▪Connecting Excellence Group signed binding Heads of Terms to acquire 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.
• ▪Connecting Excellence Group's proposed acquisition target holds 8.216 Bitcoin, which Connecting Excellence Group plans to purchase at market value with no premium upon completion of the deal.
• ▪Connecting Excellence Group's existing operating business, Spencer Riley, generated approximately £1.84 million in revenue during the 12 months ended June 30, representing a 20.6% year-over-year growth.

Bitcoin treasury acquisition strategy

• ▪Connecting Excellence Group aims to acquire profitable businesses with cash reserves, raise capital to acquire those reserves, and subsequently convert them into Bitcoin on its balance sheet.
• ▪Connecting Excellence Group's acquisition strategy is designed to expand both its operating business footprint and its corporate Bitcoin holdings simultaneously by exchanging cash for equivalent Bitcoin assets.

Decentralized acquisition compounder model

• ▪Connecting Excellence Group operates as a decentralized acquisition compounder, allowing acquired specialist recruitment businesses to retain their existing brands, management teams, and operating independence.
• ▪Connecting Excellence Group's decentralized model focuses on letting acquired businesses operate autonomously while providing permanent ownership, public listing access, and centralized capital allocation.

Deferred consideration structure

• ▪Connecting Excellence Group's proposed acquisition structure includes a £60,000 cash payment in 2028, with the remaining consideration deferred and tied to EBITDA performance through fiscal 2029.
• ▪Connecting Excellence Group expects to pay an initial cash consideration of £575,000 at completion, with £425,000 returning to the group to settle outstanding vendor debts.

Earnings retention mechanics

• ▪Connecting Excellence Group expects to retain approximately 75% to 85% of the acquired business's cumulative EBITDA during the earn-out period to fund growth and Bitcoin purchases.
• ▪Connecting Excellence Group's capital allocation framework involves retaining operating earnings from its decentralized businesses to reinvest in further acquisitions and corporate Bitcoin holdings.

XCE Bitcoin holdings growth

• ▪Longtime investor Adam Back subscribed for new Connecting Excellence Group shares by transferring 10 Bitcoin to the company, increasing its total Bitcoin holdings by 15.9%.
• ▪Connecting Excellence Group reported holding 72.94 Bitcoin as of September 1, 2026, representing an increase from the 9.27 Bitcoin held at its December 2025 initial public offering.

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