Rectitude Holdings (NASDAQ: RECT) announces a $32.6M facility to build a measured Bitcoin reserve.
Not financial advice. Disseminated on behalf of Rectitude Holdings Inc.
The quick read
Rectitude makes safety equipment, steady, real-world products that generate revenue. It also launched a clean-energy line (the AIMS system) last year and has been expanding it into new countries. Today, the company added a third pillar: a measured Bitcoin treasury strategy backed by a $32.6 million Standby Equity Purchase Agreement (SEPA) with two investors who were early to crypto and bring deep experience to the table.
This isn’t a pivot. It’s a way to diversify the balance sheet while the core businesses keep doing the heavy lifting.
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What changed today
Rectitude signed a SEPA think of it as a flexible funding line it can tap in small tranches when conditions make sense. The intent is to accumulate and hold a portion of Bitcoin over time, not in one big splash. The two counterparties behind the facility have long histories in digital assets; their role is to provide capital support and market know-how as Rectitude implements a treasury program.
Who’s behind the facility
This capital is backed by operators. Tian Jia, a Tsinghua-trained computer scientist in distributed systems, helped architect Baidu/Alibaba search handling 100M+ daily page views, then built across search, recommendations, AI, and fintech. An early Bitcoiner (mining since 2011), he’s now CEO of Hong Kong Byzantium and previously served as Chief Scientist at the Bit Foundation.
Chen Zhiqiang built large-scale ad and recommendation systems at NetEase, Tencent, Google, 360, and Alibaba. He co-founded Tron (widely used for stablecoin flows) and later ran Bitmain’s Antpool, one of the world’s largest bitcoin-mining operations. Together they bring deep distributed-systems chops and hard crypto-market experience to Rectitude’s treasury program.
Why hold Bitcoin at all?
A company’s treasury is like its savings account. Most of it sits in cash and short-term instruments. Rectitude is adding a modest Bitcoin allocation to:
Diversify beyond traditional assets,
Hedge against long-term inflation/currency debasement, and
Gain exposure to the growth of digital assets as they move further into the mainstream.
Put simply: it’s a modern treasury tool, not a new business line.
What stays the same (and why that matters)
Safety equipment remains the engine. That’s the day-to-day business. Revenues for FY2025 increased 5.91% to $32.57 million, Gross profit margins at 33.7% and $3.39M in EBITA FY2025. Check out their full FY2025 financial results Here
AIMS clean-energy is scaling. Announced in late 2024, AIMS has begun generating additional significant revenue and expanding to new countries in Southeast Asia.
Bitcoin is a complement. The treasury program sits alongside these operations and is designed to support long-term shareholder value, not replace the company’s core focus.
Why this approach makes sense
Some companies went “all-in” on crypto. Rectitude isn’t doing that. It’s layering a measured exposure on top of a real, cash-generative business and a growing clean-energy offering. Bringing in specialist investors, using a flexible facility, and clearly separating treasury from operations is a more conservative way to participate in the asset class.
What to watch next
In the near term, watch how management defines its allocation policy, target range, pacing, and what portion of mined or purchased BTC will be held long term. Track SEPA usage (how often and at what size), custody and controls (where BTC is held, security, audit), and clear disclosure of BTC holdings and related accounting. Just as important: ongoing operating updates on the core safety-equipment business and AIMS clean-energy deployments.
Bottom line
Rectitude is aiming for a three-legged stool: steady safety products, expanding clean energy, and a modernized treasury that includes Bitcoin. If executed carefully, the company could strengthen its balance sheet while it grows the core and do it without betting the farm on crypto.
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Disclosure & Disclaimer
This newsletter is for informational and educational purposes only and does not constitute investment advice, an offer, or a solicitation to buy or sell any security. Investing involves risk, including the possible loss of principal. Digital assets can be highly volatile and may not be suitable for all investors. Statements in this piece are based on information provided by the company and other publicly available materials at the time of writing and may change without notice. Always conduct your own due diligence and review the company’s filings with the U.S. Securities and Exchange Commission before making investment decisions.