Miller Cole

Bitcoin Research & Content Analyst @smarterwebuk

Posting in a Personal Capacity

[Miller Cole @MillerC0le]

Another day of high activity for SWC.

3.54 million shares traded today, against last Friday's 784,320 - a 351.3% increase in volume.

Price hit an intraday high of 37p, and closed at 34.8p - up 10.46% on the day. That's against a Bitcoin price move of around 6%, so SWC's share price move outpaced Bitcoin's today.

That 37p intraday high is the highest price since Friday 15th May - 14 weeks ago.

On the rankings: SWC finished first among FTSE Small Cap stocks by price gain today, and came a close second on the FTSE All-Share by the same measure. We believe both figures were slightly distorted in the final hour by a market maker issue where buy orders weren't being allowed through while sell orders were, affecting our own close and the All-Share comparison.

Fully diluted EV vs BTC Value (mNAV) holds at 0.92 - still a discount. Incredibly, we're cheaper now than we were at the start of the week.

Net Bitcoin value per fully diluted share has moved from 30p at the start of the week to 37p now - a 23.3% increase.

NAV has gone from £108,125,823 (Monday) to £135,156,327 today - up £27,030,504, or 25.0%.

The operating business and balance sheet building continues in parallel - that work doesn't change day to day.

LSE: #SWC | OTCQB: $TSWCF | FRA: $3M8

[Miller Cole @MillerC0le]

@80IQConviction Great point mate. I’m planning to do a post on this at some point to explain.

I’ve enjoyed watching it slowly adjust with price the last week.

[Miller Cole @MillerC0le]

What a week. We watched Bitcoin rise 22% this week from the mid-$60ks into the $77k area (as of writing).

$SATA was the crucial signal. It printed through par and closed Friday at $100.01, holding the level. That is the operating condition the product needs for the ATM to stay open without friction. The common also outpaced Bitcoin, showing the power of Amplified Bitcoin. It will be fascinating to see what $SATA can do next week with a full week hopefully at par.

Metaplanet made the structural announcement. They are putting 2,100 BTC plus $2.5 million cash into Nasdaq-listed Super League to create Superplanet (SUPA) as a U.S. treasury vehicle. The coins are only ~5% of their stack. The point is a second listed platform that can issue dollar perpetual preferreds against Bitcoin collateral in the deepest credit market. Closing is Q4. This was a fantastic example of innovation in the sector. I'm very excited to see where this leads. $MTPLF $MPJPY

Strategy’s $MSTR 840,447 BTC (average cost $75,385) is now $1.3-1.4 billion above cost for the first time in nearly three months. They have $4.8 billion in USD reserves - 2.8 years of coverage - and Stretch ( $STRC ) finished at $96.18 after continued buybacks, $3.82 from par. It already feels like a long time since a few months ago when critics were calling for the destruction of Strategy and calling Stretch a Ponzi. Who's laughing now?

On the Smarter Web $SWC side the week was equally mechanical. Share price 28p → 34.8p (+24.3%). Net Bitcoin value per fully diluted share 30p → 37p (+23.3%). NAV £108.1 million → £135.2 million (+25.0%). Unrealised loss narrowed 27%. mNAV actually ticked from 0.93 to 0.92 - cheaper on that measure than at the start of the week, even after the rally. Friday volume was 3.54 million shares versus 784k the Friday before. The 37p high was the best print since mid-May. A positive step in the right direction.

Taken together it was a fantastic week: Bitcoin recovered hard, the largest stack moved back through cost, $SATA held par, $STRC closed the gap, Metaplanet opened a U.S. capital-markets path, and SWC’s NAV and Bitcoin-per-share both stepped up more than 20%.

[Miller Cole @MillerC0le]

Great insights from Wiki.

Here’s to Morerer

[SWC-Wiki @SWC_Wiki]

Bitcoin ETF's with strong inflows for the month of August.

MSBT (Morgan Stanley) the new kid on the block constantly stacking.

August net inflows of $2.4B across all Bitcoin ETF's with a week to go.

Bitcoin up, Smarter Web up morerer. Hope your bags are packed.

[Miller Cole @MillerC0le]

@SWC_Wiki @wildgoosejon

[Miller Cole @MillerC0le]

@MorningCoffee75 🚀🚀🚀

[Miller Cole @MillerC0le]

@UncleDividends Appreciate it UD! Been a strong week, but more to come I hope.

Great to see the companies that continued to build in the bear benefit.

[Miller Cole @MillerC0le]

@Paulcottom Appreciate it Paul. Have a great Sunday!

[Miller Cole @MillerC0le]

@andysmith_asap Thanks mate. Have a great sunday.

[Miller Cole @MillerC0le]

@SWC_Wiki Here for the bears

[Miller Cole @MillerC0le]

Hi Jaden, hope you’re well mate.

Just wanted to give my personal perspective.

The key reason why I believe a company like SWC could be advantageous is the BTC-per-share point, which is worth separating from a static Bitcoin holding.

A company with a Bitcoin Treasury can grow BTC per share over time through equity issuance and other capital actions - whereas a passive BTC ETN position can't do that by definition, it just holds what it holds.

There’s absolutely nothing wrong with this route, but the team at SWC is focused on dynamically increasing BTC exposure per fully diluted share over time. We also have access to levers such as leverage (and others) which can amplify $BTC price movements.

Happy to chat more privately if you want to hear more.

[Joe Burnett, MSBA @IIICapital]

Hi @elonmusk.

Curious what you think about these potential outcomes for Bitcoin, especially in a world where AI trends toward creating an abundance of almost everything while the supply of BTC remains fixed at 21 million.

[Miller Cole @MillerC0le]

@TNorth @GrainofSaltSF King of analogies for a reason👀🎯

[Miller Cole @MillerC0le]

@JayW132 Slotted straight into third!🫡

[Miller Cole @MillerC0le]

@Michaeljdobbin Excited for the future🚀

[Miller Cole @MillerC0le]

A quick personal note to the community to close out the week.

I just wanted to say thank you for the welcome and the support so far. It means a lot to step into this knowing shareholders are engaged and paying attention to the details. This community is one-of-a-kind.

The backdrop right now is genuinely exciting to be part of. The work going on behind the scenes has been relentless. I've been struck by how hard everyone in the team is pulling in the same direction.

It's been a tough few months for everyone but thank you for sticking in there. Obviously it's been an amazing week, but remember, we're still only just getting started.

More to come. Here for the journey. 🧡🇬🇧

LSE: #SWC | OTCQB: $TSWCF | FRA: $3M8

[Miller Cole @MillerC0le]

@InvestorSmarter 🙏🙏🙏

[Miller Cole @MillerC0le]

@Glend_66 @SWC_Wiki

[Miller Cole @MillerC0le]

After a week of key economic data in Britain, the trend continues. Not a particularly comfortable read.

Public-sector net debt closed July at £2.985tn - 94.1% of GDP. July borrowing came in at £1.8bn against expectations of near zero.

CPI rose to 2.9%, CPIH to 3.1%. This was the kind of print that keeps the long end of gilts from settling. 10-year yields sit near 5.06%, 30-year near 5.80%, levels last seen in the late 1990s. Tuesday brings 2033 gilts to auction - worth watching how demand holds up.

We know how this goes: higher debt, more issuance, yields staying elevated while inflation runs hot. Debt doesn't disappear. It rolls forward, and the cost is paid by whoever comes after.

Sterling can be issued against that loop. Bitcoin cannot. Supply capped at 21 million, a block every ten minutes regardless of the fiscal numbers.

That's why Smarter Web is built the way it is. A growing core business with Britain's largest Bitcoin treasury attached.

If the government keeps issuing currency against a rising debt stock, we'd rather own the asset that can't be issued to match it.

LSE: #SWC | OTCQB: $TSWCF | FRA: $3M8

[Miller Cole @MillerC0le]

@Michaeljdobbin Appreciate it, Michael. Have a good weekend mate.

[Miller Cole @MillerC0le]

Another day of high activity for SWC.

3.54 million shares traded today, against last Friday's 784,320 - a 351.3% increase in volume.

Price hit an intraday high of 37p, and closed at 34.8p - up 10.46% on the day. That's against a Bitcoin price move of around 6%, so SWC's share price move outpaced Bitcoin's today.

That 37p intraday high is the highest price since Friday 15th May - 14 weeks ago.

On the rankings: SWC finished first among FTSE Small Cap stocks by price gain today, and came a close second on the FTSE All-Share by the same measure. We believe both figures were slightly distorted in the final hour by a market maker issue where buy orders weren't being allowed through while sell orders were, affecting our own close and the All-Share comparison.

Fully diluted EV vs BTC Value (mNAV) holds at 0.92 - still a discount. Incredibly, we're cheaper now than we were at the start of the week.

Net Bitcoin value per fully diluted share has moved from 30p at the start of the week to 37p now - a 23.3% increase.

NAV has gone from £108,125,823 (Monday) to £135,156,327 today - up £27,030,504, or 25.0%.

The operating business and balance sheet building continues in parallel - that work doesn't change day to day.

LSE: #SWC | OTCQB: $TSWCF | FRA: $3M8

[Andrew Webley @asjwebley]

Back to basics: I believe Bitcoin is the best asset in the world to own.

That is obviously a very strong statement and, as always, it is simply my personal opinion. However, when I think about where I want to store the value of my work personally, or where I believe capital can be most effectively stored on a corporate balance sheet, over the long term, I continue to arrive at the same answer: Bitcoin.

There are many reasons for that, but ultimately, I think it comes down to a relatively simple combination of scarcity, liquidity and the potential for continued global adoption. There will only ever be 21 million Bitcoin, its monetary policy is transparent and predictable, and it can be traded globally 24 hours a day, 7 days a week. As more understand those characteristics, I believe the amount of capital that ultimately wants exposure to Bitcoin will increase significantly.

That does not mean Bitcoin is easy to own. In fact, one of the characteristics that makes Bitcoin particularly difficult for many investors is its volatility. The price can move significantly in either direction over relatively short periods of time or, as we have seen again this year, there can be extended periods where the market appears to value Bitcoin very differently from where I personally believe it should be valued.

Markets can remain irrational for a long time. Something being undervalued does not mean that the market has to recognise that undervaluation immediately, and I think that is an important distinction. Personally, I have thought Bitcoin has looked incredibly cheap this year, but that does not mean I expected the price to immediately move higher simply because I believed that to be the case.

Wednesday appeared to mark the beginning of a notable move in Bitcoin, with the price rising by around 6% on the day in what was its strongest percentage gain since March. At one point on Wednesday Bitcoin traded above $69,000, having been around $64,000 only a day earlier. That strength continued, providing an interesting reminder of how quickly sentiment and price can change. Whether this develops into a more sustained move remains to be seen and, as I have written before, whilst I am confident that I believe the worst of the Bitcoin price action is behind us, I certainly do not claim to know what Bitcoin will do with certainty over the coming days or weeks.

What I do know is that this week's move has not materially changed my view of Bitcoin, just as the weaker periods earlier in the year did not materially change it either. In my opinion, Bitcoin remains absurdly undervalued relative to the long-term opportunity.

Personally, I think about Bitcoin as a savings technology. If I work today and want to preserve the value of that work for many years into the future, I want to store it in something that cannot simply be created in greater quantities. Bitcoin is different because nobody can decide to create another 21 million Bitcoin.

When I think about Bitcoin from the perspective of Smarter Web, the principle is similar, but the application is slightly different. A corporate balance sheet exists to support the long-term objectives of the business, and capital therefore needs to be allocated intelligently between operating requirements, growth opportunities, acquisitions, liquidity and the treasury. I struggle to identify an asset that I would rather own than Bitcoin.

Of course, holding Bitcoin on a corporate balance sheet introduces volatility, and that volatility has to be understood and managed appropriately. It would be completely unrealistic to build a Bitcoin treasury strategy on the assumption that Bitcoin simply increases in value every month or every quarter. There will be corrections, difficult periods and times when the market moves significantly against us, just as there will hopefully be periods where the opposite occurs.

For me, the important question is whether I am prepared to accept that short-term volatility in exchange for the opportunity to own an absolutely scarce, globally liquid asset that I believe will become an increasingly important part of the world's financial system over the coming decades. That is why Bitcoin remains at the core of what we are building at Smarter Web.

We will continue growing our operating businesses, looking for the right acquisition opportunities and developing the capital markets side of our strategy. Our conviction in Bitcoin underpins the entire model. I still believe Bitcoin is incredibly cheap. Perhaps the market will agree with me next week, perhaps next year, or perhaps it will take considerably longer. Markets have their own timetable, and our job is to continue executing while we wait.

Turning to this week, on Monday we were pleased to welcome Miller Cole to the Smarter Web team.

Miller is working closely alongside me to help grow our content and support our wider marketing activity. He has a good understanding of Bitcoin, has already worked within the industry and wants to build his career with Smarter Web. He has already started making an impact, and I am really pleased to have him working with us.

As I have written before, I believe marketing, education and communication are incredibly important parts of building a successful Bitcoin treasury company. As we grow, we want to continue bringing talented people into the business, who believe in what we are building and want to grow with the Company over the long term.

Away from welcoming Miller, much of the week has simply been about cracking on with the usual work across Smarter Web.

This was another week without any regulatory announcements. I am conscious that I wrote last week about how busy the team remains behind the scenes, and I do not want to simply repeat the same message every week. However, it remains the reality.

There are a number of things we are working on that we simply cannot discuss publicly at this stage. I appreciate that can be frustrating for shareholders who understandably want to know more. It can also be frustrating for me, because these weekly updates are intended to provide as much visibility as possible into what we are doing.

So please bear with us.

Not every week of building a company produces something that can be announced to the market. A great deal of the work that ultimately becomes visible to shareholders takes place quietly over many weeks or months beforehand.

Our focus remains on growing the operating businesses, strengthening our Bitcoin treasury, developing our capital markets strategy and allocating capital intelligently. There will inevitably be quieter weeks publicly along the way, but that does not change what we are working towards.

Next week, Miller and I will be hosting another Smarter Web Livestream on Thursday 27 August at 14:00 UK time. It will be a good opportunity to introduce Miller properly to shareholders, talk through some of the things we have been working on and, as usual, have an informal conversation about Smarter Web, Bitcoin and anything else that seems interesting on the day. If you are free, please join us live on X or YouTube as always.

Thank you, as always, for your continued support and patience. We remain extremely excited about what we are building and look forward to sharing more when we are able.

LSE: #SWC | OTCQB: $TSWCF | FRA: $3M8

[Miller Cole @MillerC0le]

@AFCB12 Happy to hear, Simon! Always feel free to let me know if you have any questions.

Have a great weekend.

[Miller Cole @MillerC0le]

SWC - weekly stats, start of week to now

Share price: 28p → 34.8p (+24.3%)
mNAV: 0.93 → 0.92 (−1.1%)
Net Bitcoin value per fully diluted share: 30p → 37p (+23.3%)
Net asset value: £108,125,823 → £135,156,327 (+25.0%)
Unrealized profit/loss: −£98,971,582 → −£71,941,070 (loss narrowed by 27.3%)

LSE: #SWC | OTCQB: $TSWCF | FRA: $3M8

[Miller Cole @MillerC0le]

@MorningCoffee75 @asjwebley Kind words Chris! We’re excited too. Have a great weekend.