London-listed The Smarter Web Company (LSE: SWC) disclosed on May 26 that it acquired 10 Bitcoin at an average price of £55,786 per coin, equivalent to roughly $74,904. The purchase totaled £557,865 and brings the company’s aggregate Bitcoin holdings to 2,869 BTC.
The firm’s cumulative investment in Bitcoin now stands at £232.48 million, with an average acquisition cost of £81,032 ($109,000) per BTC, highlighting that the latest purchase was executed well below its overall cost basis.
Bitcoin is a key component in the company’s capital allocation strategy.
The company’s management reported that it has a Bitcoin yield to date of 15,43%. This is a measure used to determine the changes in Bitcoin holdings compared to the number of fully diluted shares. The KPI shows that the company is more concerned with accumulating BTC than it is about short-term fluctuations in price.
The latest acquisition follows continued use of a credit facility arranged with Coinbase, under which the company has drawn £18 million to date. It represents a leverage of approximately 12.19%, highlighting the willingness of the company to leverage debt to expand its Bitcoin exposure.
Coinbase offers a facility that is secured on the BTC assets of the company and has an interest rate range between 6.75 % to 7.25 %. The loan is repaid by the company at its discretion, without any penalty. This allows flexibility to manage leverage according to market conditions.
Bitcoin as an asset of treasury
The Smarter Web CompanyIn the year 2000, a company that provides online marketing, web development, and design services began. accepting BTC Payments in 2022, and since then has integrated this asset into the broader corporate strategies. In addition to organic expansion, the company also pursues acquisitions in order to expand its clientele and generate recurring revenues.
The Smarter Web Company is now part of a rapidly growing group of companies adopting BTC centric treasury management models. This follows the strategies developed by Strive, Strategy and other publicly-traded firms.
Just today, Strive’s SATA preferred stock absorbed roughly 453 bitcoin — exceeding the entire daily mining supply — marking a record-setting surge in demand that underscores its rapid rise as a major BTC accumulation vehicle and a growing challenger to Strategy’s dominance in treasury growth.
In the past two weeks, Strategy MSTR shifted focus From buying bitcoin, to repurchasing its $1.5 billion convertible debt at a 8% discount. This reduced liabilities and conserved capital. The company also continued to grow its BTC holdings through the issuance of equity, increasing its total position to 843 738 BTC, as it actively rebalanced the balance sheet.
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Source: bitcoinmagazine.com
