Over the last few years, it is difficult to overstate the contribution that Michael Saylor and Strategy have made to Bitcoin. They have fundamentally changed how institutional investors think about Bitcoin, demonstrated how public companies can use the capital markets to acquire Bitcoin responsibly, and in doing so have inspired many other companies, including Smarter Web, to adopt a Bitcoin treasury.
On Monday this week we heard that Strategy had sold 3,588 Bitcoin, which followed a small sale of 32 Bitcoin recently. Perhaps the most significant aspect was not the transaction itself, but the market’s response. It reminded me of when Tesla sold 10% of its Bitcoin holdings in 2021, with Elon Musk explaining that one of the objectives was to demonstrate Bitcoin’s liquidity and show that sizeable positions could be bought and sold without disrupting the market. Please note that as of today Strategy hold 843,775 Bitcoin and the sale was less than 0.5% of their holding. In the last 3 months alone, they have increased their Bitcoin holdings by 10% whilst also increased their USD reserve to a current $2.55 billion.
For a long time, I have heard some investors express concern that Strategy has become the company that “holds up” the Bitcoin market. Whether or not that perception is accurate, and in my view the evidence points to that not being true, I believe it is an important psychological consideration for many investors. One that now can be changed.
My own view is that Bitcoin’s greatest strength is that it is bigger than any one person, company or country. If a company such as Strategy can both buy and, when appropriate, sell Bitcoin as part of responsible treasury management, while remaining a long-term net buyer, then that demonstrates the maturity of both Bitcoin and the Bitcoin treasury model. It reinforces that Bitcoin does not depend on any single participant to succeed.
Markets often tell us more through what they ignore than through what they celebrate. If investors are increasingly comfortable with the idea that the largest corporate holder can actively manage its balance sheet without undermining confidence in Bitcoin itself, then I believe that removes one of the significant psychological barriers that has existed for increased adoption.
I may be completely wrong, but I can’t help wondering whether this could prove to be one of those moments that only looks truly significant in hindsight. If Bitcoin treasury companies are increasingly viewed as businesses that allocate capital intelligently to maximise long-term Bitcoin per share, rather than as entities that must simply accumulate Bitcoin regardless of circumstance, then our industry becomes more credible, more resilient and, ultimately, more attractive to institutional capital.
It will also make it much easier for companies like Smarter Web to manage some scenarios as the market gets used to the idea that Bitcoin can be sold, or bought, but the important outcome is accretive value generation for shareholders. Bitcoin per share increasing.
At Smarter Web our objective is simple and clear for all to see. To grow our operating business, strengthen our balance sheet, remain disciplined in capital allocation and compound Bitcoin per share over the long term. If we continue to do that successfully, I believe the opportunity remains extraordinary.
This week we had no regulatory announcements. However, as I have written recently, the team remains focused on a number of important projects that we look forward to sharing with shareholders when we are able.
On Tuesday, Bitcoin Treasuries released the podcast that I recorded with Tyler Rowe. One of the most interesting topics we discussed was that people have different views on how Bitcoin should be used, and I believe that diversity of opinion is a strength. My own view is simple: people should be free to use Bitcoin as they wish. That freedom is one of the reasons why I believe that through Bitcoin we have the potential to rebuild the world’s financial system on a stronger foundation.
Also on Tuesday, Jesse Myers, our Head of Bitcoin Strategy, appeared live on The Starting Block. He spoke with Gareth Jenkinson and covered a number of topics, including Digital Credit.
On Friday, Jesse hosted a Smarter Web Livestream with Michael Sullivan. Michael has developed an AI-powered X sentiment analysis tool that has become well known within the Bitcoin community, and it made for a fascinating discussion. Seeing two super smart Bitcoiners discuss a variety of topics, revolving around sentiment, was something that I enjoyed watching so if you have not watched the Livestream you can catch it on our YouTube channel or X page.
We plan to host many more Smarter Web Livestreams with special guests, alongside regular sessions with Jesse and myself. The next one is currently planned for just under two weeks’ time, so please keep an eye on our social media channels for further details.
One area that I am particularly passionate about is improving Bitcoin treasury analytics. Earlier this week we met with a number of companies and have since been working together to automate the flow of data and improve the framework through which it is shared. Whilst companies will inevitably have different capital structures and reporting requirements, there is significant scope to improve consistency and transparency across the sector, which I believe will ultimately benefit investors.
Looking ahead to next week, we expect to reach the final stages of the capital reduction process. I will certainly be pleased once it has been completed. Whilst we have not made any announcement regarding the intended use of distributable reserves, having them available provides Smarter Web with greater optionality for the future.
Finally, I would like to thank all of our shareholders for the continued support and patience. Building a public company for the long term means there are occasions when we cannot communicate every aspect of our thinking or plans as openly as we would like. That can sometimes be frustrating, both for shareholders and for us. What I can say is that I remain as confident as ever in our strategy. We continue to execute with discipline, a focus on increasing long-term value for shareholders, and we are making steady progress towards our key objectives.
Thank you for reading, and I hope you all have a great weekend.
CEO of The Smarter Web Company, the largest UK Bitcoin treasury company. With 25 years of profitable Internet experience. A developer with creative passion and marketing skills that work.
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