Smarter Web Optimizes Bitcoin Treasury via MORE Preferred Equity Structure
Andrew Webley details corporate debt repayment, credit facilities, and multi-tier capital allocation.
1Treasury Scaling on Public Markets
The Smarter Web Company has structured the UK's largest publicly traded corporate Bitcoin treasury. CEO Andrew Webley led the company from Hargreaves Lansdown to Aquis, ultimately reaching the London Stock Exchange Main Market. The balance sheet currently holds approximately 2,747 BTC, utilizing public equity mechanisms for institutional asset accumulation.
2Clearing Convertible Debt Burdens
SWC recently repaid its short convertible note to de-risk its capital structure and preserve pure growth exposure. Removing convertible overhangs eliminates dilution risks during market volatility, giving ordinary equity holders unencumbered exposure. This restructuring ensures the core equity functions purely as growth capital without near-term debt maturity pressure.
3Opportunistic Credit via Coinbase
The company integrated a Coinbase credit facility to execute tactical leverage when market valuations trade at cyclical lows. Borrowing capacity is deployed strictly when asset prices are cheap, maximizing purchasing power per borrowed unit. This credit line provides liquidity without forcing immediate dilution on existing London Stock Exchange shareholders.
4Introducing MORE Preferred Equity
To complement common stock, SWC launched MORE as an income-focused preferred equity instrument alongside standard equity. While ordinary shares capture long-term capital appreciation, MORE delivers structured yield for conservative income investors. This dual-class equity architecture allows the treasury to attract distinct capital pools without distorting common share dynamics.
5Managing Leverage Amplification Caps
Capital management frameworks at SWC incorporate explicit amplification caps, targeting a maximum threshold of around 35 percent. Implementing disciplined leverage boundaries protects the corporate treasury from catastrophic liquidation during sharp market drawdowns. Controlled leverage ratios balance asset accretion against the structural volatility inherent in corporate crypto holdings.
6Advantages Over Spot ETFs
Webley contrasts corporate treasury vehicles with traditional spot ETFs, emphasizing continuous growth in Bitcoin-per-share metrics. Corporate entities can dynamically issue accretive equity, optimize debt, and reinvest capital, unlike passive exchange-traded products. Furthermore, trading in British pounds eliminates foreign dividend withholding taxes often imposed on US-domiciled equity products.
7Downside Risks and Drawdowns
Corporate treasury structures inherently amplify underlying asset volatility, exposing equity holders to magnified market swings. Management execution risk remains elevated because flawed capital allocation during downturns can destroy value. During severe market drawdowns, access to external equity, credit facilities, or preferred debt is not guaranteed.
8Strategic Playbook for Treasuries
Smarter Web demonstrates how European public companies can construct multi-tiered balance sheets around digital reserve assets. By combining common equity, preferred dividend shares, and tactical credit, treasury companies provide specialized institutional liquidity. Sustained performance relies on disciplined accretion per share and cautious liquidity management through volatile cycles.