Overview of the Purchase#
The Smarter Web Company PLC has made headlines by purchasing 27 bitcoin for £1.5 million, with each bitcoin costing an average of £56,799. This acquisition brings the company's total bitcoin holdings to 2,805, which were acquired at an average price of £81,544 each, amounting to a total investment of approximately £228.7 million.
Bitcoin Yield and Credit Facility#
The company reported a notable bitcoin yield of 13.98% for the quarter to date. Additionally, following this latest purchase, Smarter Web Company has drawn £15 million from its credit facility with Coinbase. This loan is secured by the company's bitcoin assets and has a variable interest rate ranging from 6.75% to 7.25%. The leverage ratio, which indicates how much debt the company is using relative to its equity, stands at about 10.15%. Importantly, the company can repay this loan at its discretion without incurring extra charges.
Share Placement Details#
In conjunction with the bitcoin purchase, Smarter Web Company has also announced the placement of 310,000 ordinary shares under a previously disclosed subscription agreement. This placement has generated gross proceeds of £117,900, with shares priced at approximately £0.38 each. The company will retain about 98.25% of these proceeds, while there are still 52,067,540 ordinary shares left to be placed under the agreement.
The 10 Year Plan#
The recent bitcoin acquisitions are part of Smarter Web Company's long-term strategy, referred to as "The 10 Year Plan." This plan emphasizes a consistent treasury policy focused on accumulating bitcoin as a key asset for the company's future growth.