Smarter Web Company Shares Tumble as Bitcoin Hits 15-Year Low
The newly listed Smarter Web Company has experienced a dramatic collapse in its share price during early morning trading on Friday, directly linked to a significant plunge in Bitcoin values. The London-based firm, which joined the London Stock Exchange's main market just three days ago, saw its shares drop by a staggering 22.5 per cent to 31.25 pence.
This sharp decline marks a total fall of 27.3 per cent since its debut at 43 pence, casting serious doubt over the company's ambitious goal of entering the FTSE 250 index by September. Chief Executive Andrew Webley had expressed "truly confident" expectations about achieving this milestone, with eventual aspirations to reach the prestigious FTSE 100.
Bitcoin Treasury Strategy Backfires
The company's recent strategic shift toward holding Bitcoin on its balance sheet has proven costly. Dubbed the Bitcoin treasury policy, this approach involves swapping cash reserves for the digital asset, based on the rationale that cash depreciates over time while cryptocurrency appreciates.
Smarter Web Company has invested more than £221 million of investor capital in Bitcoin, acquiring 2,674 tokens at an average price of just over $111,000 each. Webley has confirmed plans to continue purchasing Bitcoin despite the current market turmoil.
The firm's journey has been volatile: after listing on the Aquis market in April last year, it surged to a market capitalization exceeding £1 billion before falling back to its current valuation of just over £150 million.
Cryptocurrency Market in Freefall
Bitcoin plummeted to a 15-year low on Friday morning, currently trading at $65,812 (£48,523) after briefly dipping to $64,000 earlier in the day. This represents the lowest level since October 2024 and a 24 per cent decline since the beginning of the year.
Analysts attribute this dramatic drop primarily to President Trump's nomination of Kevin Warsh as Federal Reserve Chair. Warsh is widely perceived as hawkish, with expectations that he will resist aggressive interest rate cuts that typically support investments in volatile assets like cryptocurrency.
The tech sector selloff has further accelerated Bitcoin's decline, as some investors liquidate their cryptocurrency holdings to cover losses or reduce exposure to high-risk assets. Bitcoin's value has long been correlated with broader tech sector performance, often rising alongside investor enthusiasm for artificial intelligence.
Political Influence on Crypto Markets
The cryptocurrency landscape has been significantly shaped by political developments during Trump's administration. Key actions include:
- Launching a cryptocurrency brand with profits directed to Trump's personal companies
- Continuing involvement with World Liberty Financial, a Trump family investment vehicle for crypto assets
- Signing legislation to support federal backing of cryptocurrency
- Dissolving a Department of Justice team focused on cryptocurrency regulation enforcement
- The Securities and Exchange Commission dropping crypto-related enforcement work and regulations
These political moves have created an environment where "many thought impossible" price levels have become reality, according to market observers. The Smarter Web Company's experience serves as a cautionary tale for businesses adopting aggressive cryptocurrency investment strategies amid unpredictable market conditions.
