Newly listed Smarter Web Company share price plummets amid Bitcoin fall
One of the London Stock Exchange’s newest members have suffered a staggering drop in its share price after becoming embroiled in the early morning Bitcoin plunge.
The Smarter Web company, which listed on London’s main market just three days ago, suffered a 22.5 per cent drop in early morning trading to 31.25 pence.
Since listing its share price has fallen 27.3 per cent, after debuting with a share price of 43 pence, potentially throwing the group’s ambition of entering the FTSE 250 at risk.
Andrew Webley, chief executive of Smarter Web Company, said on the group’s first day of trading that he was “truly confident” it could make it into the FTSE 250 by September, before eventually reaching the coveted FTSE 100.
The company launched in 2009, with its origins in web design, but has recently shifted towards holding bitcoin on its balance sheet.
Dubbed the Bitcoin treasury policy, company’s swap their cash reserves for Bitcoin, with the justification being that cash depreciates in value over time, while the digital asset appreciates.
Among businesses who made the move, many were listed on the AIM and Aquis market, a venue for the trading of equity and debt securities, in which the Smarter Web company used to be listed.
After listing on Aquis in April last year, the firm surged in value, rising to a market cap of over £1bn, before dropping back to a current market cap of just over £150m.
The firm spent more than £221m of investor capital buying Bitcoin, with its holdings purchased at an average price of just over $111,000 each and it now owning 2,674 bitcoin. Webley confirming he plans to keep buying the token.
Fed Chair and tech selloff
But Webley’s plans may be upended following Bitcoin plummeting to a 15 year low on Friday morning.
The asset’s price currently sits at $65,812 (£48,523), after climbing back slightly from $64,000 earlier this morning, the lowest level since October 2024.
The asset’s price has plummeted 24 per cent since the start of the year, dropping to levels “many thought impossible”, following months of surging Bitcoin prices amid Trump’s support from the sector.
During his first year back in office, Trump launched a cryptocurrency brand, with the bulk of profits going to his personal companies, and continued his involvement with World Liberty Financial, an investment vehicle for other crypto assets owned by the Trump family.
Elsewhere, he signed a law to support federal backing of cryptocurrency, dissolved a Department of Justice team focused on enforcing the asset’s regulations, and the Securities and Exchange Commission has dropped crypto-related enforcement work and regulations.
Analysts have credited the staggering drop to Trump’s decision to nominate Kevin Warsh as Fed Chair, as he is widely viewed as ‘hawkish’.
It is thought that Warsh will resist aggressive interest rate cuts, thereby preventing looser monetary policies that support investments in volatile assets such as crypto.
Bitcoin’s fortunes have also long been pinned to the broader tech sector, with the price tending to rise off the back of investor enthusiasm on AI.
The large selloff has accelerated the slide in the asset’s value, as some investors opted to sell Bitcoin to cover losses or to reduce exposure to volatile assets.