As of early 2025, entrepreneurs in Latvia can now establish a limited liability company (SIA) by contributing share capital in cryptocurrency - without the need for an independent appraiser to evaluate non-cash contributions. One of the first to take advantage of this groundbreaking regulation is SIA Sats Inc.

“Since my new venture is a Bitcoin-focused business, this felt like the perfect opportunity to be among the first to utilise the new framework,” says Jānis Sprenne, founder of Sats Inc. “I've been involved in Bitcoin for over a decade, so it’s encouraging to see legislation that I believe is innovative even on a global scale.”

The First Companies Are Being Registered

Asked how the process unfolded, Sprenne explains that he worked with a service provider who prepared and submitted all the required documents. Overall, the experience was smooth.

| “We submitted the paperwork and received a positive response,” he recalls.

The process is similar to contributing share capital in physical assets: the founder assigns a self-assessed value to the crypto contribution, transfers the equivalent amount into the company’s account, and it is recorded as share capital. From submission to approval, the entire process took around 10 days. Sprenne believes the review period may have been slightly longer than usual due to the novelty of the approach compared to contributing capital in euros.

The regulation enabling crypto-based share capital contributions came into effect at the start of the year. When asked why the first companies are only being formed now, Sprenne says it’s not surprising.

| “Bitcoin companies are still a niche sector. There aren’t that many operating in Latvia. And unless a founder already holds digital assets, they’ll need to purchase them-so it makes sense that we’re only now seeing the first registrations.”

Supporting Businesses with a Bitcoin Strategy

Sats Inc. specialises in Bitcoin infrastructure and strategic consulting services for businesses.

| “Although Bitcoin has been around for 16 years, most business use cases are still in their early stages. That’s where we come in - helping companies adopt a Bitcoin strategy and integrate it into their financial operations,” says Sprenne.

He believes this is particularly relevant for companies with long-term financial planning goals - especially those exposed to volatile cash flows or currency risk.

| “Bitcoin can help mitigate a number of these risks. Every company is different, so our first step is always to help them identify the most appropriate approach,” he adds.

Sprene encourages a long-term view when it comes to Bitcoin.

| “People often associate Bitcoin with short-term speculation, but its real strength lies in long-term performance. Over any five-year average, Bitcoin’s price has never declined.”

Custody, Access, and Risk Management

Many companies still lack proper systems for storing and accessing their digital assets.

| “One of the most common ways people lose crypto is by forgetting their wallet credentials,” Sprenne notes. “The larger the company, the more complex these systems become. That’s why we also help clients develop secure policies for custody and access.”

He explains that businesses need to understand how to account for crypto assets, how they impact the balance sheet, and how to set up robust internal controls.

In terms of customer readiness, he sees two distinct groups:

| “There are those already familiar with crypto, who are ready to act. But most business owners are still cautious - though that’s starting to change. Over the past decade, perceptions have shifted, and many are now prepared to engage seriously with this space.”

More Than Just a Consultancy

While Sats Inc. will begin with advisory services, its longer-term goal is broader.

| “We’re planning to develop a platform tailored to small and micro-enterprises, allowing them to educate themselves and manage crypto services independently,” Sprenne says.

Once the appropriate licences are secured, clients will be able to buy, sell, and store digital assets directly through the Sats Inc. platform.

| “That’s why we already position ourselves as a Bitcoin infrastructure company - not just a consultancy.”

Several of the sectors Sats Inc. plans to serve are heavily regulated. Sprenne emphasises that compliance is a top priority.

| “Once it becomes possible to obtain the necessary licences, we will pursue them. Regulation is a complex, costly, and relatively new area - but there’s significant support from institutions like the Bank of Latvia. That kind of state engagement shows real foresight. I genuinely value Latvia’s leadership in this space.”

A Shift in Banking Attitudes?

For years, crypto-related companies in Latvia have struggled - or outright failed - to open bank accounts. As a result, many have established operations in neighbouring countries such as Poland or Lithuania.

| “I’m hopeful that our commercial banks will become more open-minded. This is a massive opportunity. Latvian non-financial companies hold over €10 billion in bank accounts. In the coming years, a portion of that will certainly flow into crypto assets. The only question is - who’ll be the first to embrace it?”

Asked why banks have been hesitant, Sprenne believes it stems from outdated internal policies.

| “A decade ago, Bitcoin was linked to illicit activity. Banks responded with blanket restrictions that remain in place. But the landscape has evolved - crypto is now regulated in Europe. We need bold leaders in the banking sector who are willing to update their policies accordingly.”

He’s confident that now Latvia allows company capital to be paid in crypto, a more positive attitude from banks will follow.

Acting Where Governments Hesitate

Sprene says the idea for Sats Inc. had been forming for years.

| “Bitcoin has been a passion of mine for over a decade. But the turning point was hearing Donald Trump speak about adding Bitcoin to America’s strategic reserves. Other nations are considering similar moves. Here in our region, it’s not yet on the agenda - but I believe the risks of fiat currency depreciation are very real. Saving in euros means our money constantly loses value. That’s why I felt a responsibility to act on a private level.”

He points out that many Latvians are already fairly well-informed on the topic. According to the Latvian Blockchain Development Association and research firm Norstat, 11.4% of Latvians hold crypto assets.

| “There are plenty of services for individual crypto users - but almost nothing aimed at businesses. I saw the gap - and the opportunity - to provide real solutions.”

| “If a business has a million euros sitting in the bank, it’s quietly losing tens of thousands in purchasing power. That’s the risk we want to help them avoid.”

Looking to the Public Markets

Sprene has big ambitions for the future of Sats Inc.

| “In time, I’d like to see us become a publicly traded company. We might launch financial instruments, or even become an asset management firm. It all depends on how the regulatory side evolves.”

Staying Ahead of the Curve

This isn’t Sprenne’s first venture.

| “Whenever something new emerges, I like to be among the first to explore it. I enjoy innovation - learning, building, and applying ideas that create real value.”

| “Those who adopt Bitcoin early will be grateful later. Of course, it’s not without risks. That’s why balancing strategies are crucial. Some businesses will embrace more exposure, some less - but the biggest risk is ignoring that these financial shifts are already happening.”