A modest web design company which is building a Bitcoin treasury has spent almost £20m acquiring more BTC.
Founded in 2009, The Smarter Web Company is an agency based in Guildford which offers website design and development alongside marketing services for “affordable” prices.
It hit the headlines after floating on Aquis in April of this year with a valuation of £3.7m before quickly becoming the highest-valued stock on that exchange by some distance – and even broke a £1bn market cap at one point, briefly giving it unicorn status. Its market cap stands at £544.47m as of this morning.
Since 2023 the company has adopted a policy of accepting payment in Bitcoin as it “believes that Bitcoin forms a core part of the future of the global financial system”.
More pertinently, it is also “exploring opportunities through organic growth and corporate acquisitions is pioneering the adoption of a Bitcoin Treasury Policy into its strategy”.
It revealed in a notice posted to the London Stock Exchange this morning that it had purchased an additional 225 Bitcoin at an average price of $118,080 – amounting to £19.9m.
Its total Bitcoin holdings now stand at 2,050, with a total average purchase price of $108,556 per Bitcoin. It has spent £166m on the original crypto to date.
The company’s founder is former Hargreaves Lansdown head of digital Andrew Webley, who is well-versed in the world of cryptocurrency and, in particular, Bitcoin.
Crucially, the firm holds a subscription agreement with Shard Merchant Capital, which allows it to capitalise on its soaring share price via a ‘daily rebasing’ feature which means it can continuously access capital markets at prevailing market prices.
This dynamic funding mechanism adapts to changing market conditions and investor sentiment.
And The Smarter Web Company has capitalised, repeatedly raising tens of millions of pounds via accelerated bookbuilds – a process where a company raises capital quickly without any marketing push – and investing this into Bitcoin stock.
It even appointed a Bitcoin strategy consultant, Jesse Myers, earlier this year.
Glen Goodman, author of the book The Crypto Trader, told This Is Money that Webley had “identified a huge gap in the market for Bitcoin investment vehicles, caused by the FCA (Financial Conduct Authority) banning retail investors from putting Bitcoin investments in their Isas”.
In effect, by mimicking firms such as US giant MicroStrategy, The Smarter Web Company has become a Bitcoin investment fund.
The firm said it has achieved a year-to-date BTC yield of 49,198% on its treasury, with approximate net cash in treasury available to be deployed into Bitcoin now standing at £500,000.