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Bitcoin has won. Global consensus is that $BTC is digital capital. The four-year cycle is dead. Price is now driven by capital flows. Bank and digital credit will determine Bitcoin’s growth trajectory. The biggest risk is bad ideas driving iatrogenic protocol changes.
Michael Saylor retweeted
CardoneCapital acquires another
16 BTC at $80,000
Michael Saylor retweeted
Bitcoin is Digital Capital, and I believe that the future global financial system will increasingly be built on top of the Bitcoin network. That is a big statement, but I think we are beginning to see the early stages of what could become one of the most significant transformations in the history of finance.
I am certainly not alone in that belief. Over recent years, we have seen a significant change in how some of the world's largest financial institutions approach Bitcoin. Companies such as Fidelity, JPMorgan, BlackRock and TD are increasingly engaging with Bitcoin, whether through research, investment products or the development of financial services. All four of these established global names released updates relating to Bitcoin this week. TD, through its TD Cowen research division, has been doing some excellent work in this space, producing detailed research into Bitcoin treasury companies and the emerging Digital Credit market. TD Cowen has also been providing research coverage of Smarter Web for some time, and I think the depth of analysis being undertaken by institutions of this calibre is particularly encouraging. These are organisations with enormous influence across global capital markets, and I think their growing involvement is another indication of how far Bitcoin has developed.
Before turning to some of the highlights from this week, I wanted to spend a little time explaining how I see the Bitcoin financial ecosystem developing and why I believe it is so relevant to the future of Smarter Web. You may have heard the phrases Digital Capital, Digital Equity, Digital Credit and Digital Money, concepts that Michael Saylor, Executive Chairman of Strategy, has spent considerable time explaining. I think they provide an excellent framework for understanding how an entirely new financial system could develop around Bitcoin, with different layers designed to serve different purposes and different types of investors.
The starting point is Bitcoin itself. I believe Bitcoin is the best form of capital ever created. It is Digital Capital. Bitcoin has a number of properties that make it fundamentally different from traditional forms of capital. Its supply is limited to 21 million coins, its issuance is programmed to reduce approximately every four years, and it operates on a decentralised global network that is not controlled by any single government, company or individual. It can be transferred around the world, divided into extremely small units and independently verified. I believe these characteristics, combined with increasing adoption and absolute scarcity, give Bitcoin the potential to become an increasingly important store of value and foundation for the global financial system.
The next layer is Digital Equity. Companies such as Strategy and Smarter Web have chosen to build substantial Bitcoin treasuries. In our case, this is SWC, our Ordinary Shares. Digital Equity is different from simply owning Bitcoin because a company can use capital markets, financing and disciplined capital allocation to increase the Bitcoin value attributable to each share over time, whilst as growing an operating business. If management executes well, this creates the potential for Digital Equity to outperform Bitcoin itself. It also introduces additional risks, including amplification, where movements in the Bitcoin price can have a greater percentage impact on the underlying value attributable to Ordinary Shareholders. This works in both directions, and Digital Equity is not a proxy for Bitcoin and can be considerably more volatile than Bitcoin.
This brings us to Digital Credit, something that has become particularly relevant to Smarter Web following the recent launch of MORE Preferred Shares on the Main Market of the London Stock Exchange. Digital Credit is designed for a different type of investor, one who may be more interested in regular income and lower price volatility than the potential capital appreciation associated with Digital Equity. In our case, MORE has a cumulative variable-rate preferential dividend, currently set at 12% per annum (based on a £100 reference price) and payable weekly. It is supported by the same business and Bitcoin treasury as SWC but has different rights and a more senior position within our capital structure. The objective is to provide investors with an attractive income whilst giving Smarter Web access to another source of capital that can support our continued growth. Of course, lower volatility is an objective rather than a guarantee, and investors need to understand the different risks associated with each equity.
It was interesting to see TD Cowen launch its new Digital Credit Weekly research framework this week. The report looks at how different Bitcoin-backed credit instruments can be compared, including their dividend yields, position within a company's capital structure, Bitcoin asset coverage and ability to support ongoing payment obligations. Importantly, MORE is included alongside Digital Credit securities issued by Strategy and Strive, bringing Smarter Web into a comparative framework covering some of the leading companies developing this market. TD Cowen introduces two measures, BTC Rating and BTC Fixed Charge Coverage, designed to help investors better understand the Bitcoin backing these instruments and the obligations associated with them. I think this is an important development because, as Digital Credit becomes more established, investors will increasingly need consistent ways to evaluate and compare the different opportunities available. It is encouraging to see this level of independent institutional research emerging around the sector and particularly pleasing to see MORE included at such an early stage in its development.
The next concept is Digital Money, and this is where I think the potential scale of the opportunity becomes particularly interesting. Digital Money takes the concept of Digital Credit a stage further, combining income-generating Digital Credit instruments with cash or highly liquid cash equivalents to create products designed to maintain a relatively stable value whilst also generating income. The objective is to combine some of the characteristics people expect from money, including stability, liquidity and ease of transfer, with the potential to earn a return. These products could eventually exist as digital tokens, funds or accounts, allowing value to move more efficiently through the financial system. Importantly, Digital Money would not necessarily involve spending Bitcoin itself. Instead, it could use financial instruments ultimately supported by Bitcoin-backed capital structures to create something designed for everyday financial use. There are significant considerations around regulation, liquidity and risk management, and maintaining a stable value is not guaranteed, but I believe the opportunity could be enormous.
There are other concepts within this developing ecosystem, including Digital Yield, which generally involves seeking higher returns through additional financial structuring and risk. However, I think the main areas I have described demonstrate how different financial structures can be built around Bitcoin to meet different objectives. Bitcoin provides the underlying Digital Capital. Digital Equity gives investors exposure to companies seeking to accumulate and compound Bitcoin value. Digital Credit provides income-focused investment structures and an additional source of capital for those companies. Digital Money could then combine that income-generating capability with the stability and liquidity required for much wider use across the financial system.
What I find particularly exciting is that Smarter Web is already participating in the development of this ecosystem. We have built the UK's largest public company Bitcoin treasury, established SWC as our Digital Equity and recently launched MORE as our Digital Credit. We are still at a very early stage, particularly in the UK, but I believe the opportunity to continue developing these different forms of capital is significant. My ambition is to build a company that can grow, continue accumulating Bitcoin, grow the net Bitcoin value attributable to each fully diluted Ordinary Share and access different pools of capital in a way that strengthens the business over the long term. MORE is an important part of that strategy, and I believe we have only just begun to explore what it could become.
When I think about how this might develop, I often compare it with the internet and, more recently, artificial intelligence. Today, very few people would question the importance of the internet to the global economy, and we are increasingly seeing how AI is changing the way we live and work. Both technologies have created enormous opportunities, but there were periods when their long-term significance was not widely understood. I believe we could be living through a similar period with Bitcoin, as it develops from something many people still regard simply as an investment asset, or others see as a medium of exchange, into a foundation upon which an increasingly sophisticated financial system can be built.
Of course, none of this is guaranteed, and everyone has different financial circumstances, investment objectives and attitudes towards risk. I do not claim to know exactly how quickly this will develop or what the financial system will look like, with certainty, in ten or twenty years. However, I believe the direction of travel is becoming increasingly clear, and that Bitcoin has the potential to become considerably more important to the global financial system than it is today. In my view, it is worth taking the time to understand what is happening and considering what it could mean for your own future. Because if Bitcoin does become the foundation of a new global financial system, the implications will be extraordinary, and I think there is a very good chance that it will catch on.
For clarity, Smarter Web is an operating business with a Bitcoin treasury, not a regulated financial services firm. However, through SWC and MORE, we now have two distinct equities that I believe position us within this emerging financial ecosystem. Some of the concepts I have discussed, particularly around Digital Money, will require the involvement of regulated financial institutions and the development of products that comply with the different regulatory frameworks around the world. Our focus is on building a stronger operating business, growing our Bitcoin treasury and developing a capital structure that I believe can play an increasingly important role as this ecosystem evolves.
Turning to the week itself, on Monday Alex and Will launched some changes to the web design packages offered by our operating businesses. I have written many times about the importance of having operating businesses alongside our Bitcoin treasury, and this is another example of the work taking place across that side of Smarter Web. If you own a business or are responsible for online marketing, I encourage you to look at the web design services we offer. I think you might be surprised by the pricing, particularly when you consider the quality of the service and the peace of mind that comes from working with an established team. Our operating businesses serve more than 500 client websites, and I am keen to see us continue growing that number.
On Tuesday, we published our first weekly MORE dividend announcement, confirming the dividend and the important dates for shareholders. The dividend for the week ending Friday 23 October is £0.2301 per Preferred Share, based on the current annual Preferred Dividend Rate of 12%. The ex-dividend date is Thursday 22 October, the record date is Friday 23 October and the payment date is Monday 9 November. We intend to make this a regular Tuesday announcement so that MORE investors have clear visibility of the dates that matter to them. I think consistent communication is particularly important when introducing a new type of equity to the UK market, and we want to make it as straightforward as possible for investors to understand how MORE works.
Towards the end of Tuesday, I also recorded an X Spaces with Gary and the UK BTC Spotlight team. I really enjoyed the conversation. I have been fortunate enough to appear on quite a few podcasts and Spaces over the past 18 months, but relatively few have been hosted by UK-based Bitcoin communities. I always enjoy the opportunity to speak with people who are helping to grow awareness and understanding of Bitcoin in the UK. There is an enormous amount of education still to be done, particularly around Bitcoin treasury companies and the development of Digital Credit, and I think these conversations play an important role in reaching a wider audience.
On Wednesday, Tim Kotzman hosted the first Digital Credit Digital Conference, which I was pleased to speak at. It was another great opportunity to talk about MORE, why we have developed it and why I believe Digital Credit could become such an important part of the future of Smarter Web. There is a great deal of work to do in helping investors understand how preferred equity fits alongside traditional ordinary equity and Bitcoin treasury strategies. Building awareness, educating investors and demonstrating consistent execution will all be important if we are to develop MORE into the significant source of capital I believe it has the potential to become.
On Thursday, we published our latest ATM update, covering activity across both our Ordinary Shares and Preferred Shares facilities. We raised approximately £592,679 in gross proceeds. Our Ordinary Share price has not demonstrated as much strength as I would have liked, and that naturally affects the opportunities available to us through the ATM. However, I think our ATM partner has done a good job balancing the opportunity to raise some capital at what we consider a reasonable mNAV against the importance of not issuing too much equity at a valuation that is lower than I would ideally like. We want to maintain the flexibility to acquire more Bitcoin, but we also need to remain disciplined about the price at which we issue Ordinary Shares. Raising capital is not the objective in itself. Raising and allocating capital in a way that increases value for existing shareholders is what matters.
We also saw a small number of MORE Preferred Shares sold through the Preferred Shares ATM Facility at £100 per share. This is obviously a very small amount of activity at this stage, but I am pleased to see the facility beginning to operate. As is normal with a newly listed equity, it can take time for a market to develop, for liquidity to improve and for investors to become comfortable with the structure. My hope is that MORE will establish itself as an equity that trades around its £100 reference amount, although that is certainly not something we can guarantee. We need to continue developing awareness, attracting investors and demonstrating that we can manage the structure responsibly. I remain incredibly excited about what MORE could become, but I also recognise that building a successful market takes time.
Friday saw the third announcement of the week with a Bitcoin purchase for 20 Bitcoin taking to our treasury to 2,850 Bitcoin in total. This is an increase in our holdings of 3.75% in the last two weeks and a Bitcoin Yield of 2.41% quarter-to-date. We believe there is significant opportunity ahead this quarter to continue growing our Bitcoin treasury in an accretive and disciplined manner.
Finally, please do not forget that we will be hosting the UK Bitcoin Treasuries Conference again in May 2027. I thought this year's event was a great success, bringing together people from across the Bitcoin treasury industry, capital markets and the wider Bitcoin community. We want next year's event to be even better, and I am looking forward to welcoming everyone back. You can find details on our website, along with photos and videos from this year's conference. Early bird ticket prices increase at the end of October, so if you are interested in joining us next year, I would encourage you to visit our website and secure your ticket before the price increases.
As always, thank you to our shareholders and everyone who continues to support Smarter Web. We have made significant progress in developing our capital structure over recent months, but I believe there is an enormous amount more we can achieve. Our focus remains on strengthening our operating businesses, growing our Bitcoin treasury and building a company that can continue creating value for shareholders over the long term. There is plenty of work ahead of us, and I am looking forward to it.
LSE: #SWC #MORE | OTCQB: $TSWCF | FRA: $3M8
MORE, our new Preferred Shares, began trading on the Main Market of the London Stock Exchange on Wednesday this week. That marked the conclusion of an incredibly involved project which has occupied a significant amount of our time over recent months, but more importantly, I believe it marks the beginning of an exciting new chapter for Smarter Web.
I have written extensively over recent weeks about capital structure, the importance of accessing different pools of capital and why I believe MORE could become such an important part of our long-term strategy. Now that MORE is trading, I wanted to take the opportunity to explain a little more about what I believe the ideal Bitcoin treasury company looks like, why having two equities matters and some of the things we are focused on over the shorter term.
In my opinion, the ideal Bitcoin treasury company has a growing operating business, two distinct equities, no debt, a healthy cash reserve to support its dividend obligations and, of course, a substantial Bitcoin treasury that can continue growing in an accretive manner for shareholders. That is the model I want us to build at Smarter Web.
The two equities are particularly important. I want scale but I also want simplicity. We have SWC, our Ordinary Shares, and MORE, our Preferred Shares. They are designed for different investors with different objectives. SWC provides exposure to the potential growth of Smarter Web, including our operating businesses and Bitcoin treasury, whilst MORE is designed around income through a cumulative variable-rate preferential dividend payable weekly. Both have different rights and risks, and neither offers guaranteed outcomes. But having access to two different pools of capital gives us considerably more flexibility in how we finance and grow the Company.
Over time, I want us to significantly expand the reach of both SWC and MORE. That will require education, communication, marketing and, most importantly, consistent execution. We are still at an early stage in the development of Bitcoin treasury companies, particularly in the UK, and I believe there is a much larger audience of potential investors who have yet to fully understand what we are building. However, I want to be very clear that having access to capital does not mean we should raise it on any terms. We have the ability to issue both Ordinary and Preferred Shares, but the economics need to make sense. I would much rather be patient and raise the right capital on the right terms than pursue growth simply for the sake of announcing a larger Bitcoin balance sheet.
One of our shorter-term priorities is to continue reducing the outstanding balance on our Coinbase credit facility. I have spoken previously about the importance of simplifying our capital structure, and ultimately, I would like MORE to represent the most senior financial claim within the business. I believe a capital structure built around Ordinary Shares and Preferred Shares, without traditional debt, will be an incredibly powerful model. It would also give investors a clearer understanding of the different claims on the Company's assets and how value is attributable to each class of equity.
Of course, we also want to continue growing our total Bitcoin holdings. But as I have said many times, the objective is not simply to own more Bitcoin. It is to increase the net Bitcoin value attributable to each fully diluted Ordinary Share. That means maintaining discipline around the cost of capital and keeping a sensible relationship between the value of our Bitcoin treasury and our net claims, which for this purpose I think about as total debt outstanding plus total Preferred Shares, less our Treasury Cash Balance and Dividend Cash Balance. We have stated a maximum ratio of approximately 35%, and perhaps there will be an opportunity to increase that as MORE develops and grows. However, I think it is important to build a company that can withstand difficult market conditions rather than one that only works when Bitcoin is increasing in price.
Bitcoin will remain volatile, and there will inevitably be periods when markets move against us. We cannot control those movements, but we can control how we allocate capital and manage our balance sheet. My ambition is to put Smarter Web in a position where we can demonstrate growth in Bitcoin per share every quarter, including through more challenging market conditions. That is not a guarantee, but it is an objective. Consistent, accretive growth is far more important to me than simply achieving the largest possible Bitcoin treasury in the shortest possible time.
Alongside all of this, we will continue growing our operating businesses. I have always believed that having a growing operating business alongside a Bitcoin treasury is an important part of what makes Smarter Web different. We want to grow organically and through acquisitions, but acquisitions take time and need to be completed with the right valuations and deal structures. We will not acquire businesses simply to demonstrate activity. Every acquisition needs to contribute to building a stronger and more valuable Smarter Web over the long term.
Turning to the week itself, Monday was a busy day. We announced an update to our Ordinary Shares ATM Facility, with gross proceeds of £579,371 raised at an average price of approximately £0.69 per share. Future updates will move to Thursdays, allowing us to report activity across both our Ordinary Shares and Preferred Shares ATM Facilities in a single announcement. Alongside this, we provided an update on the pre-IPO warrants, with 2,650,000 more warrants exercised, leaving just 1,800,000 of those warrants held by external investors.
Monday also saw us announce the results of the MORE IPO, raising £10 million. I was pleased that more than three-quarters of the capital raised, approximately £7.6 million, came from retail investors. MORE is the UK's first sterling-denominated, perpetual Preferred Share backed by a corporate Bitcoin treasury, and with its weekly dividend it also represents an important innovation for the London market.
Of course, £10 million is relatively small when compared with what has been achieved in the United States, where Bitcoin treasury preferred equities have raised more than $10 billion over the past 12 months. But we have been here before. When Smarter Web first listed, we were starting from a very small base, with an ambition that many people questioned. Since then, we have demonstrated what can be achieved through consistent execution. I see MORE in a similar way. The IPO was an important first step, but my job now is to develop it into something considerably larger, responsibly but as quickly as the market and the economics allow.
On Wednesday MORE beginning trading on the London Stock Exchange. It was an incredibly satisfying moment for everyone involved in bringing the equity to market. A huge amount of work has taken place behind the scenes, and I would like to thank our team, advisers, partners and everyone who contributed to making it happen. However, as I said at the beginning of this update, this is only the beginning. We now need to build awareness, develop the market and demonstrate how MORE can contribute to the continued growth of Smarter Web.
On Thursday, we announced the acquisition of a further 83 Bitcoin, our largest Bitcoin purchase of the year so far, taking our total holdings to 2,830 Bitcoin. I am obviously delighted to see our treasury continuing to grow, particularly as we remain focused on increasing the Bitcoin value attributable to each Ordinary Share. Alongside the purchase, we announced a further reduction in our Coinbase credit facility to £16 million, another step towards the simpler capital structure I have described above. Later in the day, Miller and I hosted our latest Smarter Web Livestream, and I also joined the Daily Stack for another conversation about Smarter Web, MORE and the wider Bitcoin treasury sector.
On Friday evening, it was great to record another podcast with Peter Duan, who has been a long-time favourite within the Smarter Web community. I always enjoy these conversations, particularly with people who have followed our journey for some time and understand how the business and our strategy have evolved. Communication and education will continue to be incredibly important as we work to broaden the audience for both SWC and MORE, and I am looking forward to doing much more of this over the coming weeks and months.
Looking ahead, I am incredibly excited about what we are building. We now have two listed equities, a substantial Bitcoin treasury, growing operating businesses and an increasingly flexible capital structure. We will continue to make decisions based on what we believe creates the greatest long-term value for our shareholders. MORE is a significant milestone, but it is not the destination.
Thank you, as always, to our shareholders, our team and everyone who continues to support Smarter Web. Your continued support is appreciated.
LSE: #SWC #MORE | OTCQB: $TSWCF | FRA: $3M8
Michael Saylor retweeted
JUST IN: The world's largest derivatives exchange CME Group says Bitcoin primarily functions as a decentralized store of value 👀
"The asset is maturing along distinct economic, functional, and regulatory paths" 🚀
Michael Saylor retweeted
On Tuesday, Fidelity @DigitalAssets published a paper that called Digital Credit Preferred Stocks like $STRC and $SATS "The Newest Demand Catalyst in Bitcoin".
In this week's video, I walk through the paper and what it means to income investors and retirees...
Our goal is to grow Bitcoin per share. Here’s how Strategy puts Digital Capital, Digital Credit, and Digital Equity to work. $MSTR
For those who prefer to read, our $MSTR Investor Briefing covers Bitcoin per share, Digital Credit, and our capital structure. PDF: strategy.com/mstr/brief
Michael Saylor retweeted
Fresh numbers on enhanced digital credit yield. 🔍
$apyUSD 30D APY: 13.79%
Think $STRC makes its way back to par?
Implied yield with $apxUSD recovery: 14.73%
DeFi yield is good. Enhanced digital credit yield is even better. 🫡
ALT Bar chart, DeFi Yield Comparison, 2026-10-22. apyUSD 30-day APY 13.79%. Hypothetical implied yield with apxUSD recovery: 14.73%. 10Y U.S. Treasury 5.13%, sUSDe 4.83%, USDC on Aave v3 3.79%, sUSDS 3.80%. Yields are variable and not guaranteed.
Michael Saylor retweeted
A new source of BTC demand is emerging.
BTC-focused perpetual preferred stocks have accumulated more than 135,000 BTC in just over a year, despite representing only a fraction of the global fixed income market.
What could happen if adoption expands?
🔗 Read our latest research: go.fidelity.com/ernlPz
