Will Wright

𝑓𝑖𝑥 𝑡ℎ𝑒 𝑚𝑜𝑛𝑒𝑦, 𝑓𝑟𝑒𝑒 𝑡ℎ𝑒 𝑤𝑜𝑟𝑙𝑑

[Zynx @ZynxBTC]

I keep saying it but $ASST is the best small cap opportunity in America.

Bitcoin experienced serious turbulence last week and yet $SATA is steadily trading back up to par today.

It is not a coincidence. The product is maturing in real time and proving its resilience exactly when it needed to.

The decision to build an 18 month USD reserve is underrated. It shows that management understands the importance of runway and is not dependent on favourable market conditions to meet obligations.

Then there is the common stock. Nearly $450 million in trading volume in a single week for a $1.3 billion market cap company.

The liquidity to raise capital is clearly there.

The fact they bought 32 Bitcoin last week was pretty hilarious and shows they are great at marketing.

The future is looking bright.

[dRisk Dave @dRiskDave]

$MPJPY: We are getting there. Step by step.

[Strategy @Strategy]

$STRC and $MSTR shareholders have approved the amendment to move $STRC dividends from monthly to semi-monthly. Under the new cadence, the first record date is June 30 and the first payment date is July 15. Thank you to every shareholder who voted.
https://t.co/98lMXWW4XF

[Michael Saylor @saylor]

Strategy has acquired 1,550 BTC for $101 million to increase our $BTC Reserve to ₿845,256. We have also increased our USD Reserve by $100 million to $1.0 billion. $MSTR $STRC https://t.co/1Zf1AVsP1H

[Matt Cole @ColeMacro]

Strive acquired an additional 32 $BTC for ~$2.1M at an average cost of ~$63,911 per bitcoin.

$ASST $SATA

[Wildgoose @wildgoosejon]

Only five mentions of perpetual preferred equity in Andrew's latest weekly update.

Probably nothing. 👀👀

[Chief OG @andysmith_asap]

$SWC ended the week above 1 mNAV after starting last week below 1 mNAV.

Bitcoin is currently $1,500 above Fridays market close in the UK.

Mondays RNS for a proposed capital reduction was received well and last weeks share price action would suggest that if measured against the Bitcoin price.

Keep above 1 mNAV all week would be massive for us.

LFG!!

[Pierre Rochard @BitcoinPierre]

The next bitcoin bull market has begun.

[Mike Alfred @mikealfred]

The move from $16,000 to $126,000 to $60,000 was not a full cycle move. It was just a re-basing before the actual bull run. The actual bull run will take us from $60,000 to at least the $315,000 area. It will correspond with an actual economic and business cycle. Newbs will see.

[Jeff Park @dgt10011]

@KobeissiLetter @TimKotzman And so UBI begins

[THE BITCOIN PHARAOH @thebtcpharaoh]

The Psychology of a Bitcoiner at –50%

Bitcoin is more than 50% off its October high. $1.5 billion liquidated this week. Eleven straight days of ETF outflows. And the bitcoiners are… fine. Cheerful, even. Posting memes.

To the outside observer this looks like a cult. It’s actually something more interesting: conditioning. Let me explain the psychology, because I find it fascinating — and I’m one of the patients.

The normal investor at –50%: calls his advisor, sells at the bottom, writes an angry email, swears off the asset class, tells the story at dinner parties for a decade.

The bitcoiner at –50%: checks the price, shrugs, checks it again 45 minutes later (we’re not perfect), and buys more.

Why the difference? History, mostly.

This is the sixth major drawdown in Bitcoin’s life. The previous ones: roughly –93% in 2011, –85% in 2014–15, –84% in 2018, –77% in 2022. Every single one was declared the obituary. Every single one resolved to a new all-time high. From $128,198 to ~$60.8K is painful — but on Bitcoin’s own historical curve, a 50% drawdown barely qualifies for the leaderboard. The veterans look at this week’s chart the way a Marine looks at a paintball bruise.

And here’s the part nobody tells you: the holder base is selected for this. Every cycle, the drawdown shakes out the leveraged, the impatient, and the tourists. Whoever is left bought their coins from someone who couldn’t take the pain. Run that filter four or five times and you get today’s holder base — people for whom –13% in a week is a Tuesday. It’s not bravery. It’s Darwinism applied to conviction. The asset literally breeds its own diamond hands.

The five stages of bitcoiner grief, for reference: denial, anger, bargaining, depression, accumulation.

I own a restaurant group. If my revenue dropped 13% in a week, I’d be in the walk-in fridge interrogating the chef. When Bitcoin drops 13% in a week, I check whether the reason is a change in the asset or a change in the mood. This week it’s mood: a hawkish Fed, a record ETF outflow streak, capital chasing AI stocks. Nothing about the protocol changed. Nothing about the 21 million changed. The fundamentals didn’t have a bad week — the holders of the fast money did.

That’s the entire psychological trick, and it isn’t a trick at all: volatility is the fee, not the flaw. Bitcoin’s long-term return profile is rented out at a price, and the price is that a few times per decade it tries very hard to make you sell it to someone more patient than you. The $1.5B in liquidations this week wasn’t wealth destroyed. It was wealth transferred — from the leveraged to the liquid, from the impatient to the conditioned.

The Pharaoh’s view: the market doesn’t pay you for being right. It pays you for staying solvent and unbothered long enough for being right to matter — which is a polite way of saying it pays you for having the emotional range of a houseplant. The bitcoiner brain at –50% isn’t broken. It’s working exactly as the asset designed it to.

#Bitcoin $MSTR $MPJPY $MTPLF

[Andrew Webley @asjwebley]

It has been a challenging week for Bitcoin, with the price experiencing one of its steepest weekly percentage declines since late 2022. However, investors should remember that volatility is an inherent characteristic of Bitcoin. It is also worth recalling that late 2022 marked the bottom of the previous bear market, before Bitcoin went on to reach new all-time highs.

While Bitcoin’s performance this year has fallen short of many investors’ expectations, periods of weakness have historically been followed by phases of renewed growth. Since its inception, Bitcoin has repeatedly overcome significant market corrections, regulatory concerns and macroeconomic challenges, ultimately rewarding investors who maintained a long-term perspective.

In fact, a number of institutional investors and asset managers have published research demonstrating that, despite its volatility, a modest allocation to Bitcoin has historically improved the risk-adjusted returns of traditional portfolios. One commonly used measure of risk-adjusted performance is the Sharpe ratio, which assesses how much return an investment generates relative to the volatility experienced to achieve those returns. While Bitcoin has often been one of the most volatile assets available to investors, its long-term returns have historically been sufficiently strong that, when combined with traditional assets, it has often improved overall portfolio efficiency rather than detracted from it.

Personally, I have a high allocation to Bitcoin and Bitcoin treasury companies at approximately 100% of my portfolio. I have always been open about this and it is what I am comfortable with as I attach little value to most other asset classes including cash. But, whilst not offering financial advice, I do think that everyone should have an allocation to Bitcoin and Bitcoin treasury companies. For most, who do not share my high conviction, perhaps somewhere between 1% and 10% is sensible.

There is currently considerable discussion around perpetual preferred equities as what may become one of the most important capital markets instruments available to Bitcoin treasury companies. Given the recent movement in Bitcoin's price, I thought it would be useful to explain these in the context of volatile price movements.

We have already reminded ourselves that Bitcoin is volatile. Despite that volatility, I believe it remains the best asset on which to build a corporate treasury. Equally, I believe that perpetual preferred equities represent one of the most attractive structures for raising permanent capital. It can appeal to yield-seeking investors while allowing the benefits generated from deploying that capital into Bitcoin to accrue to ordinary shareholders over time.

All forms of capital have a cost. With perpetual preferred equity, that cost is relatively straightforward to understand: the dividend commitment. The key question then becomes whether the return generated from the deployment of that capital exceeds its cost over time.

The Bitcoin treasury model is relatively simple in this regard.

For example, Strategy currently pays 11.5% on STRC and Strive pays 13% on SATA. Looking at Bitcoin's historical performance, the compound annual growth rate over the last 3, 5 and 10 years has been approximately 39%, 15% and 59% respectively.

£1 million invested three years ago would be worth approximately £2.26 million today.

£1 million invested five years ago would be worth approximately £2.00 million today.

£1 million invested ten years ago would be worth approximately £107 million today.

These figures illustrate an important point. While Bitcoin is volatile, the long-term historical growth rate has significantly exceeded the cost of capital represented by current perpetual preferred equity dividend rates.

Using the most conservative comparison above, if capital costs 13% per annum and the underlying asset compounds at 15% per annum, value is still being created over time. Of course, this is an intentionally simplified example and does not reflect all the complexities of a real corporate treasury model. However, it serves to illustrate the basic principle behind why a growing number of Bitcoin treasury companies view perpetual preferred equity as an attractive source of long-term capital.

Importantly, this approach seeks to minimise many of the challenges associated with other forms of financing while allowing a company to continue building its Bitcoin balance sheet, and increasing Bitcoin per share, over extended periods of time.

It is important to note that historical performance does not guarantee future results. The figures above are provided solely to illustrate the relationship between the cost of capital and Bitcoin's historical long-term growth rates and should not be interpreted as a forecast of future Bitcoin performance.

On Friday last week, we held the inaugural Bitcoin Treasury Unconference. I have received a great deal of positive feedback since then, and we have now released the individual videos, along with photographs from the event, on our website for everyone to enjoy. We will be holding the event again next year and early bird tickets are already available via our website. Thank you to everyone who attended, spoke at or sponsored the event.

On Monday this week, we released two announcements.

Firstly, we updated the market regarding warrants exercised since the pre-IPO warrant window was opened. Today, there are just 8,075,600 of these pre-IPO warrants held by external investors. When we listed the business, and Bitcoin treasury companies were far less understood than they are today, these warrants formed an important part of our route to becoming a public company. I am pleased that the warrant overhang has now been substantially reduced.

The second RNS on Monday related to a proposed capital reduction and notice of general meeting. There has been speculation online regarding the reasons behind this proposal and I would encourage shareholders to refer to the official announcement for the company's comments.

I would also like to ask every shareholder to vote their shares if they have not already done so. Whether you support or oppose a proposal, exercising your right to vote is an important part of being a shareholder. We hope that you will support this important resolution.

On Tuesday I had an update session with Squarebird, the business we acquired earlier this year using approximately 1% of our balance sheet enabling us to significantly grow our revenues. I am delighted with the progress they are making on growing the business and look forward to the hard work the team are putting into the projects developing into figures which will then be released in future updates we announce. We are lucky to have such a good business as part of our group.

For the remainder of the week, we made only two further announcements, both relating to updated TR-1 notifications from 210k Capital, LP. 210k have been a shareholder since the start of our journey and we are pleased to have Tyler Evans also on our board. These notifications were required because of our increased number of shares in issue and a change of ownership of their parent company. The quantity of shares held by 210k Capital has not changed; only its percentage ownership has changed. Under UK listing rules, significant shareholders must notify the company when certain percentage thresholds are crossed, and the company must then update the market accordingly.

Our team has been working exceptionally hard this week. Our focus remains on driving forward the various projects that we are working on, and I appreciate that it can sometimes be frustrating for shareholders not to know everything that is happening behind the scenes. However, we will disclose developments at the appropriate time and, in my view, the direction in which we are heading is the right one for the success of the business.

We are fortunate to have one of the most supportive shareholder communities in the Bitcoin treasury space. We will continue pushing forward every day, with speed, discipline and precision, as we work to build what we believe Smarter Web can become.

Thank you for your continued support; I never take that support for granted. We are working hard every day to justify the trust you place in us, and I look forward to updating you on our progress as we move forward.

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

[Ragnar @RoaringRagnar]

Bitcoin is 50% pain, 45% boredom, 5% enthusiasm.

Learn to deal with it, or get crushed.

[Chief OG @andysmith_asap]

Its been a rough couple of weeks with Bitcoin and The Smarter Web Company share price; however, mNAV has got above par when other treasury companies have seem a compression in mNAV over the same period, which i think is not an accident after Monday's Proposed Capital Reduction announcement to issue the first preferred perpetual equity in the UK.

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

[Dylan LeClair @DylanLeClair]

Bitcoin is dead. Long live Bitcoin.

[Eric Weiss ⚡️ @Eric_BIGfund]

Bitcoin breaks tourists.

Then pays survivors.

[Bitcoin Magazine @BitcoinMagazine]

El Salvador are STILL stacking 1 BTC every day since November 2022, never missing a single day 🇸🇻

Legendary 👏

[Strive @Strive]

Time for lift off @SpaceX

[Zynx @ZynxBTC]

The $ASST announcement today was incredible.

They are moving to a 24 month cash reserve structure, approximately 18 months in USD and 6 months in $STRC.

The numbers:

• $SATA dividend obligation = ~$98 million annually.
• USD position increased from ~$93 million to ~$137 million.
• $STRC position holds steady at ~$49.5 million.
• 2500 Bitcoin purchased for ~$185 million.

They raised $175 million from $SATA alone. That is approximately 13% of their entire market cap raised in a single week.

Bitcoin on the balance sheet increased from 16,500 to 19,000. A 15.15% increase.

The Strive machine is working incredibly well.