UK’s Smarter Web Company Eyes Acquisitions to Expand Bitcoin Treasury

Smarter Web Company Considers Acquiring Competitors to Bolster Bitcoin Holdings

The Smarter Web Company, known as the United Kingdom’s largest corporate Bitcoin holder, is actively contemplating acquisitions of struggling rivals as a strategy to expand its Bitcoin treasury. CEO Andrew Webley revealed to the Financial Times that the company would “certainly consider” purchasing competitors’ Bitcoin at discounted rates amid market pressures.

Current Position in Bitcoin Treasury Rankings

According to BitcoinTreasuries.NET, Smarter Web ranks as the 25th largest corporate Bitcoin holder worldwide and the top in the UK. The company currently holds 2,470 BTC, valued at nearly $275 million at current prices.

Strategic Ambitions and Rebranding Plans

Webley also indicated aspirations for Smarter Web to be included in the FTSE 100, the benchmark index of the UK’s largest publicly traded companies. He acknowledged that a corporate name change is “inevitable” but emphasized the need to execute it carefully to maintain brand integrity.

Challenges in Acquiring Distressed Crypto Assets

Industry experts caution that buying assets from bankrupt crypto firms can be more complicated than it appears. Alex Obchakevich, founder of Obchakevich Research, noted that while initial discounts on such assets might reach 60% to 70%, after accounting for liabilities, court-imposed encumbrances, and taxes, the effective discount typically narrows to 20%–50%. He cited high-profile bankruptcies like FTX and Celsius as examples, emphasizing that these situations attract investors with specialized expertise due to the undervaluation and urgency involved.

Market Reaction and Competitive Pressures

Smarter Web’s share price fell nearly 22% recently, dropping from $2.01 to $1.85 despite Bitcoin’s modest gains over the same period. Over the past month, the company’s stock has declined approximately 35.5%, outpacing Bitcoin’s 4% value loss. This downturn coincides with the UK’s recent regulatory approval allowing retail investors access to crypto exchange-traded notes (cETNs), which provide an alternative to investing in crypto treasury companies.

Industry Outlook: Increasing Competition and Market Saturation

Smarter Web’s acquisition strategy comes amid growing concerns about the sustainability of numerous crypto treasury firms. Coinbase’s head of research, David Duong, and researcher Colin Basco have described the market as entering a “player vs player” phase, where competition for investor capital intensifies. Many smaller or newer crypto treasuries may struggle to survive long term as the sector becomes oversaturated.

Josip Rupena, CEO of lending platform Milo and former Goldman Sachs analyst, drew parallels between crypto treasury companies and the collateralized debt obligations that contributed to the 2008 financial crisis. He warned that the engineering of crypto products could create investor uncertainty regarding actual exposure, increasing risk.