TL;DR
- The Smarter Web Company secures a $30 million credit facility backed by its own BTC holdings.
- The strategy aims to eliminate settlement risks and capitalize on immediate market volatility.
- Despite a 44% unrealized loss, the British firm continues to aggressively expand its digital balance sheet.
This Tuesday, it was revealed that the British firm The Smarter Web Company has secured a $30 million credit facility. The company’s goal with this maneuver is to buy Bitcoin with Coinbase credit immediately following its equity financing rounds.
This financial tool uses assets held in custody at Coinbase as collateral, allowing the firm to act with speed. By bypassing the waiting periods of traditional banking institutions, the company minimizes execution risk in a highly volatile market.
It is worth noting that the organization does not intend to maintain this credit as long-term debt within its structure. Instead, it will serve as a temporary liquidity bridge to be repaid once investor funds are officially settled.
Treasury Strategy and Expansion in the UK
Currently, the firm stands as the largest corporate Bitcoin holder in the United Kingdom, with over 2,689 BTC in its treasury. Although the average purchase price remains above current market value, the board of directors’ vision remains steadfast.
The move coincides with a cooling of net inflows into digital asset treasuries during February. While billions in inflows were recorded in December and January, the current trend shows increased caution from institutional investors.
In summary, Smarter Web reaffirms its commitment to integrating BTC as the core component of its financial reserve strategy. With this new credit line, the company positions itself to climb the ranks and aspires to eventually join the prestigious FTSE 100 index.
