TL;DR:
- Smarter Web Company maintains a position of 2,674 BTC despite an unrealized loss of approximately $98 million.
- CEO Andrew Webley reaffirms his aggressive accumulation strategy to lower the firm’s average entry cost.
- The company is preparing its move to the London Stock Exchange (LSE) main market to attract new institutional capital.
The institutional landscape in the United Kingdom faces a major challenge following the recent crypto market correction. Despite this scenario, the leading UK corporate Bitcoin holder has ratified its firm intention to expand its current reserves, turning its back on the volatility that has affected the value of its assets over the last 90 days.
Smarter Web Company CEO, Andrew Webley, assured that the firm will not alter its long-term investment thesis. While Bitcoin’s price has indeed retreated to $74,500, the company’s conviction remains intact, focusing on the digital currency’s intrinsic value over temporary fluctuations.
It is worth noting that the company holds a treasury of 2,674 BTC, acquired for approximately $276 million. However, because its average purchase price stands at $111,232, the firm faces a 33% drawdown, representing considerable pressure on its financial statements.
Growth Strategy and Migration to the London Stock Exchange
To address this situation, they plan to transfer their listing to the London Stock Exchange (LSE) main market this Tuesday. This strategic move aims to “unlock more funding from large investors,” allowing the company to acquire more BTC and optimize its average acquisition price.
On the other hand, the adoption of the “Bitcoin treasury” model is currently undergoing a severe stress test globally. While Smarter Web Company is doubling down, other entities such as Trump Media and Technology Group have reported millions in losses from similar accumulation strategies during the current cycle.
In summary, the migration to the LSE represents a critical step for the survival and expansion of Webley’s business model. Although the firm’s shares have suffered drastic falls, management is confident that increasing Bitcoin-per-share will consolidate its leading position in the British market.
