The Smarter Web Company, a UK-based digital services firm, has made headlines after raising $56 million just days after spending over $20 million on Bitcoin. The company’s strategic shift into Bitcoin comes amid a broader trend of UK firms increasing their crypto holdings, even in the absence of clear regulatory guidelines.
$56 Million Raised Through Accelerated Bookbuild
The Smarter Web Company announced it had raised £36.27 million ($49.8 million) via an accelerated bookbuild, a quick method used by companies to raise funds from institutional investors without a marketing campaign. The company also raised another £4.97 million ($6.82 million) through a direct subscription offer.
The combined total of £41.24 million ($56.62 million) was raised at an offer price of £2.90 ($3.98) per share. The newly issued shares are expected to go live on July 1.
This significant capital injection comes at a time when the company is aggressively building its Bitcoin reserves, signaling a long-term treasury strategy centred around the world’s leading cryptocurrency.
Bitcoin Holdings Jump to Over 543 BTC
Just two days before the capital raise, the company disclosed that it had bought an additional 196.8 BTC for over $20 million, at an average price of $103,290 per Bitcoin.
As of Tuesday, The Smarter Web Company holds 543.52 BTC, valued at approximately $58.19 million based on market prices. The company began June with only 83.24 BTC, meaning it has increased its Bitcoin holdings by a massive 460.28 BTC in under a month.
The Bitcoin purchases were made in five separate transactions in June alone. This comes after the company launched its formal Bitcoin treasury strategy in April, although it has been accepting Bitcoin as a form of payment since 2023.
Shares Slide Despite Crypto Push
Despite its bullish move into Bitcoin and a successful funding round, The Smarter Web Company’s stock (TSWCF) which trades on the US OTCQB market saw a 15% drop, closing at $3.56 on Thursday, with an intraday low of $3.19. It slid further by 1.8% in after-hours trading, ending the session at $3.49.
However, the bigger picture still looks positive for investors, the stock remains up 274% year-to-date, showing strong overall performance despite short-term dips. The current volatility may be a result of market uncertainty over the company’s aggressive Bitcoin acquisitions.
UK Firms Increasingly Turn to Bitcoin
The Smarter Web Company isn’t alone in its move toward Bitcoin. Other UK firms have also been adding the cryptocurrency to their balance sheets.
On Tuesday, Vinanz, a company listed on the London Stock Exchange, revealed it bought 37.72 BTC, bringing its total Bitcoin stash to 58.68 BTC. Similarly, in April, Abraxas Capital, a London-based investment firm, made headlines for purchasing over $250 million worth of Bitcoin.
These moves show a growing trend among UK-based firms to hold Bitcoin as part of their corporate treasury, despite the country’s lack of clear digital asset regulations. The adoption suggests increasing confidence in Bitcoin’s long-term value proposition.
The Smarter Web Company’s $56 million raise, so soon after a major Bitcoin purchase reflects the growing intersection between traditional business operations and digital assets. While the company’s stock has seen a slight dip, the bold move into Bitcoin signals confidence in crypto as a future-facing asset.
As more UK companies explore Bitcoin treasury strategies, this trend may push the conversation on crypto regulations to the forefront in the UK. Whether The Smarter Web Company’s bet pays off remains to be seen, but one thing is clear, crypto is no longer just a side project for UK businesses; it’s becoming part of their core financial strategy.
