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I have been working on two SWC models based on the assumption that Bitcoin continues to follow the power law over the long term. The first model shows SWC accumulating 50,000 BTC. The second model shows SWC accumulating 100,000 BTC. Both models assume that mNAV moves between 1 and 2 across each 4 year Bitcoin cycle. In simple terms, I am not assuming a permanently high premium. I am allowing the valuation to expand and contract through bull and bear markets. I have also built in different preferred share issuance assumptions depending on the stage of the cycle. During bull markets, I have assumed a higher preferred share issuance mix of 75 percent preferred shares and 25 percent common equity. During bear markets, I have assumed this reduces to 50 percent preferred shares and 50 percent common equity, similar to the type of approach Strive are currently using. These are not predictions. They are working models to help me think through what SWC could look like if Bitcoin follows the power law, if BTC accumulation continues, and if the company manages dilution carefully over multiple cycles. The important part for me is not just the bull market peaks. It is the rising base. If Bitcoin keeps trending higher over time, and SWC keeps increasing Bitcoin per share, then each future bear market could still sit far above where we are today. That is why patience matters. Not financial advice.

Over the past few weeks I have written about Bitcoin treasury analytics, Bitcoin per share, how I believe the sector is evolving, and how we at Smarter Web are trying to advance. This week, rather than focusing only on the events of the last seven days, I wanted to step back and reflect on what has been, in my view, the most significant quarter since Smarter Web became a public company. The reason I think it has been so significant is not because of any single announcement. Rather, I believe this quarter marks the point where we have started to transition from simply being a Bitcoin treasury company to becoming what is increasingly being described as an “Amplified Bitcoin” company. Bitcoin itself remains, in my view, the best treasury asset available. However, the opportunity for a public company is not simply just to own Bitcoin. It is to responsibly use the balance sheet and public markets to increase the amount of Bitcoin attributable to each share over time. That is what I understand Amplified Bitcoin to mean. Amplified Bitcoin and volatility Amplified Bitcoin creates a unique value proposition for equity investors. It combines Bitcoin with appropriate capital markets tools, strong operating businesses and disciplined capital allocation to create more long-term value for shareholders than simply holding Bitcoin alone. Over recent months we have started taking meaningful steps in that direction. We have continued increasing our Bitcoin holdings, introduced measured leverage, simplified parts of our capital structure, strengthened our management team, improved our treasury analytics and reporting, and continued developing our operating businesses. Individually, none of these developments fundamentally changes the business. Collectively, however, I believe they represent a significant evolution in how we are building Smarter Web. Amplification naturally comes with volatility. It can magnify Bitcoin’s price moves to the upside, but it can also magnify price moves to the downside. That is part of operating in an emerging sector, and it is important that investors understand both sides of that equation. Digital credit One area that has generated considerable discussion recently is digital credit. Personally, I think some of the debate reflects the fact that these are entirely new securities, and the market is still learning how to understand and therefore value them. Digital credit investors are typically buying something fundamentally different from ordinary equity investors. An equity investor is seeking capital appreciation. A digital credit investor is generally seeking a yield. The secondary market price of a digital credit instrument is important for investors buying and selling that instrument, but it does not automatically mean the issuer’s balance sheet has become stronger or weaker. It does also not impact those investors holding the security shorter term as they buy it for a yield as the selling price only impacts when they decide to sell. A sell-off in these instruments changes the effective yield available to investors in the secondary market, but it does not, in itself, change the issuer’s ability to make dividend payments. These structures are designed to finance businesses over many years, not to be judged only on weekly movements in secondary market pricing. Looking ahead There will undoubtedly continue to be volatility, both in Bitcoin and in Bitcoin treasury companies. However, my conviction has never been stronger. Our ambition remains unchanged: to build one of the leading companies in the UK, supported by a growing operating business, an increasingly sophisticated Bitcoin treasury and a balance sheet that creates long-term value for shareholders. Thank you to our shareholders, our team, our advisers, our partners and the wider Bitcoin community. Building something ambitious takes time, patience and an enormous amount of hard work, but I am excited about what comes next. Thank you, as always, for your continued support. LSE: #SWC | OTCQB: $TSWCF | FRA: $3M8