The Smarter Web Company has doubled its bitcoin holding in the past week, building its stake to almost 60 bitcoin.
The web design firm which also operates a digital assets treasury policy to make it a bitcoin holding company, purchased 16.42 bitcoin on 20 May, spending £1,280,000 at $104,202 per coin.
On 23 May the company purchased a further 23.09 bitcoin at $107,424 per token, bringing its total holding 58.71 tokens.
Boss and founder Andrew Webley wants to make Smarter Web Company into a UK version of US tech firm Micro Strategy, which has shot to prominence for its bitcoin holdings.
He explained to This is Money that he is happy to buy bitcoin now, as the short-term price is less important for his strategy than it’s long-term potential as ‘the best asset in the world’.
Stock market listed Smarter Web Company’s market cap has rocketed from just under £4million at its IPO in April to almost £100million now.
Treasury asset: The Smarter Web Company now owns almost 60 bitcoin worth £4.8million
At the time of publishing, bitcoin was trading at $107,000, making the Smarter Web Company’s bitcoin holding worth $6.3million, or £4.7 million.
Webley, chief executive of the firm, said: ‘We have announced that we have acquired a total of 58.71 to date at an average purchase price of $104,398 and as we have been acquiring Bitcoin our average price has crept up.
‘As I believe that bitcoin is the very best asset in the world, hence our Treasury policy of holding a large amount of bitcoin on our balance sheet, I am less interested in the short-term price as I am thinking what it could be valued at several years in the future.’
Earlier this money, on 14 May, the company also purchased 8.61 bitcoin at $99,871 each for £650,000.
Bitcoin soared past $110,000 a coin on Thursday for the first time, reaching a new record high of $111,886.41, its first new high since Trump’s inauguration in January.
The surge in the cryptocurrency came after the US dollar slipped amid concerns over growing US debt.
The Smarter Web Company launched its public offering back in April, with an IPO price of 2.5 pence per share, giving it a market cap of £3.7million.
On Friday afternoon, shares in the firm were trading at 56 pence per each, and its market cap of £97.27million is on the cusp of breaching the £100million mark.
Since listing, the firm has undertaken further fundraising, most recently raising £6.83million through the issue of 13.9million new shares at 49p each.
Webley said: ‘It is also worth saying that as we have raised additional capital we have done this at the market price and at higher prices each time so when we compare the dilution of an equity raise against the capital injection it is pretty impressive.’
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