Smarter Web Company pulls in £41.2m to support expansion and M&A plans

The Smarter Web Company (AQSE:SWC) is proving there is investor appetite for the right story, even in these straightened times for small-caps.

In the space of less than two weeks, it has unlocked £70 million through equity fundraisers, and has access to a further £80 million or so via a deal with  Shard Merchant Capital.

The latest top-up to the bulging coffers of the Bitcoin treasury specialist came in the form of a £41.2 million placing and subscription, which was heavily oversubscribed. It had been aiming for £30 million initially.

This gives the business a fresh injection of capital to support its next phase of growth, investors were told.

Founded in 2009 by Andrew Webley, a former head of online at Hargreaves Lansdown, The Smarter Web Company was set up to offer web design, development, and digital marketing services to businesses of all sizes.

But what’s caught the market’s imagination is its pioneering of a Bitcoin treasury policy.

So, let’s back up a bit. While the name may be unfamiliar, the concept is fairly easy to grasp: a treasury pot of assets (in this case, cryptocurrency) that is bought and built, presumably with the aim of asset appreciation.

In the case of Bitcoin, this might not be a bad bet. Since April last year, the crypto’s value has increased by more than 75% to top out at around $111,000 last month, though it has since eased back to about $108,000.

The start of the run coincided with an event called a halving, which effectively puts a choke on the mining of new currency and, by extension, supply, creating a squeeze on the price.

Experts reckon the current bull run has legs, with estimates suggesting the price could hit $200,000 by the end of this year and a barely credible $1 million by 2030.

Bulls on the cryptocurrency include Cathie Wood, the widely followed American tech investor.

By adopting a Bitcoin treasury policy, SWC is hoping to emulate the success of crypto-native businesses.

Tesla, for example, owns 11,509 bitcoins worth around $1.2 billion. Strategy, formerly known as MicroStrategy, along with Marathon Digital, Riot Platforms, and CleanSpark, are among other big crypto holders.

Here in the UK, SWC is part of a growing cohort of companies focusing on BTC investment, including Vinanz Ltd (LSE:BTC, OTCQB:VINZF)) and Coinsilium Group Limited (AQSE:COIN, OTCQB:CINGF).

So far, the new gold rush has seen 18 companies, miners, former helium businesses, and shells, pivot to join the charge, presumably aiming to emulate SWC’s success.