London-listed The Smarter Web Company (LSE: SWC) has made headlines with its recent strategic move into Bitcoin, announcing on May 26 the acquisition of 10 Bitcoin at an average price of £55,786 per coin, amounting to a total investment of £557,865. This latest purchase increases the company’s total Bitcoin holdings to 2,869 BTC, and its overall investment in the cryptocurrency now stands at £232.48 million. The average acquisition cost per Bitcoin for the firm is reported at £81,032 ($109,000), indicating that this latest acquisition was executed significantly below its historical cost basis.
The company has adopted Bitcoin as a key component of its capital allocation framework, positioning the cryptocurrency as a treasury reserve asset. Management has noted a quarter-to-date Bitcoin yield of 15.43%, a crucial metric that tracks the change in Bitcoin holdings relative to its diluted share count. This focus on yield underscores the company’s preference for long-term BTC accumulation rather than reacting to short-term market fluctuations.
The recent acquisition was facilitated by an ongoing credit facility arranged with Coinbase, from which The Smarter Web Company has drawn £18 million to date. This leverage represents an approximate ratio of 12.19%, highlighting the firm’s strategy to utilize debt financing to augment its Bitcoin holdings. The facility is secured against the company’s existing Bitcoin assets and features a variable interest rate between 6.75% and 7.25%. Importantly, the loan offers the flexibility of repayment at the company’s discretion without incurring penalties, allowing for nimble management of leverage in response to evolving market conditions.
Since beginning to accept Bitcoin payments in 2022, The Smarter Web Company has integrated this cryptocurrency into its broader corporate strategy. In addition to focusing on organic growth, the company is actively pursuing acquisition opportunities to broaden its client base and develop recurring revenue streams. This strategic pivot places The Smarter Web Company alongside a growing list of publicly traded companies adopting Bitcoin-centric treasury models.
Today’s news coincides with significant developments in the crypto investment landscape, particularly with Strive’s SATA preferred stock absorbing approximately 453 Bitcoin, surpassing the entire daily mining supply. This remarkable demand surge reflects Strive’s emerging status as a significant Bitcoin accumulation vehicle, challenging the traditional dominance seen with firms such as Strategy.
In contrast, Strategy (MSTR) has recently adjusted its focus from acquiring more Bitcoin to repurchasing $1.5 billion of its convertible debt at an 8% discount. This strategy aims to reduce liabilities while conserving capital, even as the company continues to grow its Bitcoin holdings through equity issuance, which has brought its total to 843,738 BTC.
