Executive Summary
The Story So Far
Why This Matters
Who Thinks What?
The Smarter Web Company, the UK’s largest corporate Bitcoin holder, is reportedly exploring the acquisition of struggling competitors to expand its Bitcoin treasury at a discount, according to CEO Andrew Webley. This strategic consideration comes as the company aims for a coveted spot in the FTSE 100 index, despite a recent significant decline in its stock price.
Strategic Acquisitions and Market Position
Smarter Web CEO Andrew Webley informed the Financial Times that he would “certainly consider” buying out competitors to acquire their Bitcoin holdings at a reduced price. The company currently holds 2,470 BTC, valued at nearly $275 million, making it the UK’s top corporate Bitcoin treasury and the 25th largest globally, according to BitcoinTreasuries.NET data.
Webley also articulated the company’s aspiration to join the FTSE 100, an index comprising the UK’s top 100 listed companies by market capitalization. He added that a name change for the firm is “inevitable” but emphasized the need for a proper and deliberate process.
Expert Caution on Discounted Acquisitions
While the prospect of discounted acquisitions may seem appealing, Alex Obchakevich, founder of Obchakevich Research, offered a cautious perspective. Speaking to Cointelegraph, Obchakevich stated that “buying the assets of bankrupt crypto companies often promises discounts, but the reality is actually much tougher than everyone thinks.”
He referenced the bankruptcies of major entities like crypto exchange FTX and crypto lender Celsius. Obchakevich explained that while initial discounts might appear to be 60% to 70%, the net discount typically drops to 20%–50% after accounting for liabilities, court-removed encumbrances, and taxes.
Stock Performance and Market Shifts
Webley’s comments follow a significant decline in Smarter Web’s stock price, which fell nearly 22% on a recent Friday, dropping from $2.01 at market open to $1.85 at the time of reporting. This decline occurred despite Bitcoin gaining more than 1% over the same 24-hour period.
Over the last month, Smarter Web’s price fell by approximately 35.5%, while Bitcoin itself experienced a loss of over 4% of its value. This correction in Smarter Web’s stock also coincides with a recent regulatory change in the UK.
In early August, the UK permitted retail investors to access crypto exchange-traded notes (cETNs), with the change taking effect from October 8. This development introduces an alternative investment avenue, as crypto treasury companies were previously the most accessible regulated vehicle for gaining exposure to digital assets in the UK.
Smarter Web’s pursuit of discounted Bitcoin acquisitions and FTSE 100 status underscores its ambitious growth strategy amid a dynamic market and evolving regulatory landscape in the UK. The company faces the dual challenge of navigating its stock performance and adapting to a more competitive investment environment following the introduction of cETNs.
