Smarter Web Company shares jump after million-pound Bitcoin spree
Shares in Smarter Web Company jumped in early London trade after the company reported its latest Bitcoin spending spree.
The Aquis-listed business said it had acquired 104.28 Bitcoin at an average price of £77,751, bringing its total purchase to £8.1m.
The move is the latest as part of Smarter Web Company’s “10 Year Plan” under which it aims to acquire as much Bitcoin as possible using its reserve cash, a highly unusual move for a UK-listed business which mimics a similar policy successfully adopted by US firm Microstrategy.
The company now holds 346.63 Bitcoin with a combined market value of £27.2m. Its shares rose 8.8 per cent on Thursday morning, meaning the stock has now rocketed nearly five-fold since the start of the month.
That brings the Guildford-based firm’s market cap up to £880m, which would make it more valuable than many constituents of the FTSE 250.
Bitcoin is ‘Core part of the future’
The Smarter Web Company, which offers web design, web development and online marketing services, has now raised funds five times since its IPO in April, following another £30m raise last week. It is already comfortably the most valuable constituent of the Aquis exchange.
“The company believes that Bitcoin forms a core part of the future of the global financial system and as the company explores opportunities through organic growth and corporate acquisitions is pioneering the adoption of a Bitcoin Treasury Policy into its strategy,” Smarter Web Company said.
The company’s founder, ex Hargreaves Lansdown head of digital Andrew Webley, controls a 12.4 per cent stake in the business worth over £100m.
“By taking a pioneering approach to treasury management using digital assets, including Bitcoin, we believe we offer investors an excellent opportunity,” Webley said.
“In addition to organic growth, the company will progress an acquisition strategy targeting other businesses with a view to growing its number of clients and / or recurring revenue,” the firm said.