Research report
The Smarter Web Company is the UK's largest publicly traded Bitcoin treasury company. It is held in this portfolio exclusively through a SIPP for the tax-advantaged Bitcoin exposure that structure provides. SWC represents 15.90% of the portfolio, rated Overweight.
The investment thesis is not about SWC's underlying web design business — it is about gaining leveraged, tax-free Bitcoin exposure through a UK-listed equity held in a pension wrapper. SWC is the UK's answer to Strategy (formerly MicroStrategy), following the same corporate Bitcoin treasury playbook: raise capital through equity and debt, convert it to Bitcoin, and grow BTC per share over time.
The position is currently down approximately 16% from an average entry price of ~33p, with the share price at 27.80p as of 27 March 2026. SWC's Bitcoin holdings were acquired at an average cost significantly above the current BTC price, meaning the company is underwater on its treasury. The thesis remains intact because the investment case is a long-term bet on Bitcoin appreciation within a tax-efficient wrapper, not a trade on short-term SWC share price movements.
The systematic buy rule for this position is: purchase via SIPP when the mNAV (multiple of Net Asset Value) is at or below 1.25x. Above that threshold, spot BTC offers better value.
The Smarter Web Company PLC was founded by Andrew Webley and is based in Bristol, UK. The underlying business is a web design and digital marketing agency serving property, recruitment, hospitality, and financial sectors. The company generates revenue from setup fees, annual hosting charges, and optional monthly service fees.
However, the investment case is entirely about the Bitcoin treasury strategy, not the web services revenue. SWC adopted a Bitcoin treasury policy in 2023, initially accepting BTC as payment, and in April 2025 launched its "10 Year Plan" — a formal strategy to acquire and hold Bitcoin as a core corporate reserve asset, modelled explicitly on Strategy's approach in the US. The company was advised by David Bailey and UTXO Management in structuring this strategy.
SWC listed on the Aquis Stock Exchange (AQSE) on 25 April 2025 through a reverse takeover. The stock subsequently rose approximately 20,000% as the Bitcoin treasury strategy gained attention, before experiencing a significant correction. On 3 February 2026, the company migrated to the Main Market of the London Stock Exchange, and on 23 March 2026, SWC was admitted to the FTSE All-Share and FTSE SmallCap indices.
The company has approximately 11 employees. Andrew Webley serves as CEO, with Albert Soleiman appointed as CFO. Strand Hanson acts as corporate adviser. Webley has publicly stated his aspiration for SWC to eventually become a FTSE 100 company, and has indicated that a corporate name change is "inevitable" as the Bitcoin treasury strategy becomes the dominant identity.
Pillar 1: Tax-advantaged Bitcoin exposure.
UK investors cannot hold Bitcoin or cryptocurrency directly in a SIPP or ISA. The FCA banned the sale of crypto exchange-traded products (ETPs) to retail investors in 2020. This creates a structural gap — UK investors seeking tax-advantaged Bitcoin exposure have very limited options.
SWC fills this gap. By holding shares in a Bitcoin treasury company within a SIPP, capital gains on Bitcoin appreciation compound tax-free until pension drawdown (currently age 55, rising to 57 in 2028). This is a significant advantage over holding spot BTC, where gains are subject to Capital Gains Tax at 18-24% (after a £3,000 annual allowance).
For context: if Bitcoin triples in value over the next decade, spot BTC holders face a substantial CGT bill on realisation. SWC holders in a SIPP face no tax event at all until drawdown, at which point pension income tax rates apply. Over a multi-decade holding period, this compounding advantage is material.
This is the primary reason this position exists as a separate line item rather than being folded into the direct BTC allocation. Without the SIPP wrapper, this capital would be deployed in spot Bitcoin instead.
Pillar 2: Leveraged Bitcoin exposure through capital structure.
SWC raises capital through share issuance, convertible loan notes, and credit facilities to acquire Bitcoin. This means shareholders effectively get more Bitcoin exposure per pound invested than buying spot — the company uses financial engineering to amplify BTC accumulation beyond what its own cash flow could achieve.
The $30M credit facility from Coinbase, announced in early 2026, provides substantial additional capacity for BTC acquisition. The convertible loan note issued in August 2025 raised approximately £15.8M in gross proceeds. These instruments allow SWC to accelerate BTC accumulation during favourable market conditions.
The leverage is a double-edged sword. In a rising Bitcoin market, leveraged exposure amplifies returns. In a falling market — like the current environment — it amplifies losses and can create balance sheet stress. The company's operating business generates enough cash flow to cover operational expenses, which prevents forced Bitcoin sales during drawdowns, but the leveraged structure means the share price falls harder than spot BTC in corrections.
Pillar 3: UK first-mover advantage in Bitcoin treasury adoption.
SWC is the UK's largest publicly traded Bitcoin treasury company and ranks approximately 25th globally among corporate BTC holders. It is the first UK company to execute the Strategy playbook at meaningful scale, giving it first-mover advantage in a market that is still developing.
The move to the LSE Main Market and FTSE index inclusion in March 2026 significantly broadens institutional access. Passive index funds tracking the FTSE All-Share or SmallCap indices will now hold SWC automatically, providing ongoing demand for shares regardless of active investor sentiment.
If the Bitcoin treasury model gains broader corporate adoption in the UK — as it has in the US — SWC's established position, institutional listing, and operational track record make it the natural benchmark and potential acquisition target.
SWC has been aggressively accumulating Bitcoin since its listing in April 2025. Holdings have grown rapidly through a combination of share placements, convertible debt, and the Coinbase credit facility.
Holdings timeline:
The company's BTC holdings have grown from zero at IPO to approximately 2,695 BTC as reported by bitcointreasuries.net, with The Block reporting 2,550 BTC as of February 2026. The precise current figure may differ based on acquisitions made after the latest public reporting date.
Average acquisition cost:
SWC has acquired its Bitcoin at an average cost significantly above the current spot price. Based on the company's reported total capital deployed of approximately £221M and its total BTC holdings, the implied average cost per Bitcoin is approximately $111,000. With Bitcoin currently trading at approximately $66,000, the company is substantially underwater on its treasury position.
Capital sources:
The company has funded BTC acquisitions through multiple channels: share placements and subscriptions (the primary mechanism, which dilutes existing shareholders), a convertible loan note issued in August 2025 raising approximately £15.8M, the $30M Coinbase credit facility (from which £650K was drawn in March 2026 for the warrant buyback), and to a lesser extent, operating cash flow from the web design business.
Recent capital structure actions:
In March 2026, SWC purchased 3 million pre-IPO warrants for £618,000 (approximately 20.6p per warrant). All warrants acquired were cancelled, reducing potential future dilution. This buyback improved the company's quarter-to-date Bitcoin yield metric from -0.93% to -0.18%. The transaction was funded by drawing on the Coinbase credit facility, representing approximately 0.40% of net asset value.
SWC is valued through the mNAV (multiple of Net Asset Value) framework, the standard approach for Bitcoin treasury companies globally.
How mNAV works:
mNAV measures the ratio of the company's total market capitalisation to the net value of its Bitcoin holdings (BTC held × current BTC price, minus debt). An mNAV of 1.0x means the company trades at exactly the value of its Bitcoin. Above 1.0x means investors are paying a premium for the equity wrapper, management, leverage, and listing benefits. Below 1.0x means the company trades at a discount to its Bitcoin holdings.
The buy rule for this position:
Purchase SWC via SIPP when mNAV is at or below 1.25x. This threshold was chosen because the tax advantage of the SIPP wrapper (eliminating CGT on gains) is worth approximately 18-24% of any capital gain. An mNAV of 1.25x means paying a 25% premium for the Bitcoin exposure — roughly equal to the CGT saving. Above 1.25x, the premium exceeds the tax benefit and spot BTC becomes the better allocation.
Why mNAV matters more than share price:
SWC's share price alone is misleading because the share count has changed dramatically through multiple placements. What matters is the ratio of market cap to Bitcoin value. A falling share price accompanied by rising BTC per share can actually represent improving fundamentals — and vice versa.
Current mNAV assessment:
At the current share price of 27.80p, the mNAV depends on the fully diluted share count and the company's latest reported BTC holdings. Given that BTC is trading well below SWC's average acquisition cost, the mNAV may be depressed, potentially presenting a buying opportunity within the 1.25x threshold. This requires calculation against the most recent RNS announcement data.
SWC is explicitly modelling itself on Strategy (formerly MicroStrategy), the US-listed company that pioneered the corporate Bitcoin treasury approach under Michael Saylor. CEO Andrew Webley met with Saylor in June 2025 to discuss strategy directly.
What SWC has replicated:
A Bitcoin-first treasury strategy with public commitment to long-term accumulation. Bitcoin yield (BTC per share growth) as the primary performance metric. Capital raises through equity and debt specifically for Bitcoin acquisition. A convertible loan note (analogous to Strategy's convertible notes). A credit facility (Coinbase, analogous to Strategy's banking relationships). Public communication about acquisition metrics and strategy. All operational expenses covered by the underlying business cash flow, preventing forced BTC sales.
Where SWC differs:
Scale is the primary difference — Strategy holds over 500,000 BTC while SWC holds approximately 2,695 BTC. SWC trades on the LSE Main Market with growing but still relatively limited liquidity compared to NASDAQ. Strategy has issued multiple series of preferred stock instruments (STRK, STRC) that SWC has not yet replicated, though the company has explored similar structures within UK regulatory constraints. UK Companies Act Section 830 restricts dividends to accumulated realised profits, which creates structural challenges for replicating Strategy's preferred stock dividend model.
The opportunity:
SWC is at approximately the stage Strategy was at in 2020–2021 — early in its accumulation, under-followed by institutional investors, and with the share price not yet reflecting the full optionality of the Bitcoin treasury strategy. If the model continues gaining adoption and UK institutional interest grows, SWC has clear first-mover advantage. The FTSE index inclusion from March 2026 is a step Strategy took years to achieve — SWC has compressed that timeline significantly.
The risk:
A larger, better-capitalised UK company could enter the Bitcoin treasury space and marginalise SWC through superior capital access and brand recognition. The "player vs player" dynamic identified by Coinbase's research team suggests the corporate Bitcoin treasury space is becoming competitive, and not all entrants will survive.
Dilution risk — HIGH
This is the single most important risk for SWC shareholders. The company funds Bitcoin purchases substantially through share issuance, which dilutes existing shareholders' per-share economics. If the rate of dilution exceeds the rate of Bitcoin appreciation, per-share BTC exposure decreases even as total company BTC holdings grow. The warrant buyback in March 2026 is a positive signal that management is actively managing this risk, but ongoing monitoring of Bitcoin yield (BTC per diluted share) is essential. The convertible loan note adds additional potential dilution when converted.
BTC price risk — HIGH
SWC provides leveraged Bitcoin exposure, which amplifies downside as well as upside. The company acquired its BTC at an average cost of approximately $111,000, significantly above the current price of approximately $66,000. This means the company is currently underwater on its treasury. While operational cash flow covers expenses (preventing forced liquidation), a sustained decline in Bitcoin price could create balance sheet pressure, restrict further capital raising, and erode investor confidence.
Liquidity risk — MEDIUM
Despite the move to the LSE Main Market and FTSE inclusion, SWC remains a small-cap stock with relatively limited daily trading volume. Bid-ask spreads can be wide, and executing significant trades at favourable prices remains challenging. FTSE index inclusion should improve liquidity over time as passive fund flows increase, but this is a gradual process. This is acceptable for a long-term SIPP holding but would be problematic for any position requiring rapid exit.
Management and key person risk — MEDIUM
The investment case depends on management continuing to execute the Bitcoin treasury strategy competently. With approximately 11 employees and a founder-led structure, key person risk is real. Poor capital allocation decisions, excessive dilution, loss of institutional adviser relationships, or a change in strategic direction could invalidate the thesis. Andrew Webley's personal commitment appears strong ("I'd rather sell my arm" than the Bitcoin treasury), but corporate commitments are not legally binding personal guarantees.
Regulatory and listing risk — LOW-MEDIUM
SWC's LSE Main Market listing brings higher regulatory standards and FCA oversight, which increases compliance costs but also provides greater institutional credibility. UK regulatory changes affecting Bitcoin treasury companies, cryptocurrency-exposed equities, or the treatment of digital assets in SIPPs could impact the investment case. The current regulatory trajectory in the UK is toward accommodation rather than prohibition, but this could change.
mNAV compression risk — LOW-MEDIUM
If investor enthusiasm for Bitcoin treasury stocks fades globally — perhaps due to poor performance of the model during a sustained bear market, or competitive saturation — SWC could trade at a persistent discount to NAV. At that point, the company becomes a less efficient vehicle than direct BTC ownership, even within a SIPP. The Coinbase research team's "player vs player" warning is relevant here.
Allocation: 15.90% of portfolio — third-largest position.
Origin: Direct share purchases in 2026.
Return on capital deployed: -16% at time of writing (average entry ~33p, current price 27.80p).
Custody: Held in a SIPP (Self-Invested Personal Pension). This wrapper provides tax-free capital gains growth until pension drawdown.
Buy rule: Purchase when mNAV ≤ 1.25x. Above this threshold, spot BTC is the preferred allocation.
Relationship to BTC position: SWC provides indirect, leveraged Bitcoin exposure. Combined with the direct BTC holding (11.76%), effective Bitcoin exposure across the portfolio is approximately 25–30% of total value.
Position sizing policy: Allocation percentages are disclosed publicly. Absolute share counts and specific portfolio values are not disclosed.
Current status: INTACT
What would change the thesis:
This research reflects the author's personal analysis and investment position. It is not financial advice. The author holds SWC shares in a SIPP and BTC directly as disclosed. The author is not affiliated with The Smarter Web Company PLC. All information is believed accurate as of the publication date but may change. Do your own research. Arxonic — arxonic.com — @Arxonic
- SWC abandoning or materially altering its Bitcoin treasury strategy
- Sustained dilution that erodes BTC per share without corresponding BTC price appreciation
- Loss of LSE Main Market listing or FTSE index inclusion
- Regulatory changes that remove the tax advantage of holding Bitcoin exposure in a SIPP
- Management turnover that brings in leadership uncommitted to the Bitcoin strategy
- A competing UK-listed Bitcoin treasury company achieving significantly better execution, liquidity, and scale
- mNAV persistently above 1.25x with no strategic justification for the premium
- Short-term share price declines (including the current -16% from entry)
- Bitcoin price drawdowns (the position is sized for this)
- Temporary negative Bitcoin yield during market downturns
- Regulatory consultation or discussion (as opposed to actual restrictive legislation)
- Bitcoin yield (BTC per diluted share) — the primary performance metric
- mNAV ratio relative to the 1.25x buy threshold
- Share dilution from new placements and warrant/convertible exercises
- Coinbase credit facility utilisation and terms
- Management communications about strategy, particularly any signs of strategy drift
- UK regulatory developments around SIPPs, cryptocurrency, and digital asset ETPs
- Competitive landscape for UK Bitcoin treasury companies
- Progress on potential corporate name change and institutional marketing
This research reflects the author's personal analysis and investment position. It is not financial advice. The author holds SWC shares in a SIPP and BTC directly as disclosed. The author is not affiliated with The Smarter Web Company PLC. All information is believed accurate as of the publication date but may change. Do your own research. Arxonic — arxonic.com — @Arxonic