The Smarter Web Company, a UK-based web design firm, has increased its total reserves by adding another 196.9 BTC to its treasury as part of its new Bitcoin (BTC) focused strategy.
Starting in April, the company has placed Bitcoin at the center of its financial strategy, making its latest purchase, valued at approximately £15.2 million or $20.3 million, at an average price of £77,122 ($103,290) per Bitcoin. As a result, The Smarter Web Company has raised its total Bitcoin holdings to 543.52 BTC. The average cost of the Bitcoin held by the company is £77,988 ($104,450).
The Smarter Web Company was established as a firm offering web design, development, and digital marketing services, but starting in April, it decided to increase its Bitcoin investments, believing that Bitcoin would play a critical role in the financial system of the future. The company's ten-year plan is based on providing long-term value to its shareholders by maintaining Bitcoin purchases alongside organic growth.
The Smarter Web Company's Bitcoin move has had an incredible impact on the markets. The company's market value, which began trading on the Aquis Exchange in April, rose from £4 million to £1 billion in just two months, becoming competitive with large companies. Following this massive surge, the company's market value quickly surpassed established firms like Aston Martin.
On the other hand, the company's radical move has created high volatility in the market, with prices experiencing a drop of nearly 50% on Tuesday. The UK's Financial Conduct Authority (FCA) describes the company's Bitcoin investments as "high risk."
David Duong, Head of Coinbase Institutional Research, warns that companies borrowing to acquire crypto assets could pose systemic risks in the future. However, he also adds that no significant pressure is expected in the short term.