The UK's largest corporate Bitcoin holder, The Smarter Web Company (LON: SWC), announced on Friday its plans to launch a new class of preferred shares on the London Stock Exchange, the first of its kind issued by a UK corporate company owning Bitcoin.
The preferred shares, named 'MORE,' will be listed on the exchange with a nominal value of £0.001 each. The company aims to raise between £15 and £25 million in gross proceeds, offering what the Bristol-based firm described as 'accumulative weekly variable-rate dividends,' along with preferential rights upon liquidation and a company buyback option.
The plan appears to have been well-received by investors, as the company's SWC shares rose more than 15% on the day.
What do Smarter Web's MORE Preferred Shares offer?
The MORE preferred shares do not grant holders voting rights at general meetings. They are simply a fixed-income instrument allowing holders to gain exposure to Bitcoin without purchasing the coin itself or the company's ordinary shares.
In July, Swedish company Bitcoin Treasury Capital listed the first Bitcoin-backed preferred shares in Europe, offering monthly fixed annual dividend payments of 10%.
Smarter Web's version will be included in the UK FCA's listing under the non-voting shares category.
Smarter Web's management outlined four methods for funding the dividend payments:
- Operating cash flow
- Cash reserves
- Bitcoin treasury
- Future sales of ordinary or preferred shares
The company also expects to sell more preferred shares over time through a market placement mechanism managed by Tennyson Capital Partners.
How is Smarter Web currently managing its Bitcoin reserve?
When Smarter Web sold 177.89 $BTC to settle an $11.7 million convertible instrument provided by the TOBAM group, CEO Andrew Webley stated that the company was reconsidering its position on whether fiat and Bitcoin-denominated convertible bonds were 'the right solution for raising capital.' Notably, Webley left open the possibility of benefitting from them.
However, the early debt repayment two weeks ahead of schedule prevented the potential issuance of over 7.7 million ordinary shares.
Smarter Web is now moving forward with a long-term capital source that management plans to use for financing acquisitions of income-generating web businesses, replenishing working capital, and further growing the Bitcoin treasury.
According to Cryptopolitan, as of early September, Smarter Web owned 2,747 $BTC, ranking 29th among public corporate holders, following the addition of 35 coins in a recent update.
The FCA must still approve the prospectus before Smarter Web can list the MORE shares on the exchange. The completion of the deal also depends on the company raising at least £10 million, securing at least three registered market makers, and having at least half of the preferred shares in free float.
Shareholders will vote on this plan at a general meeting on September 28th in Bristol.
Why timing is a double-edged sword
The fundraising comes amid a reshuffle in the corporate treasury sector. Some UK competitors are retreating: according to Cryptopolitan, in July, over 90% of Satsuma Technology's shareholders voted to sell their 668 $BTC and delist, returning far less than the £163.6 million invested.
The Financial Times reported that Bitcoin-managing companies have lost over $80 billion in market value compared to their 2025 peak.
Against this backdrop, Smarter Web is attempting to expand, not contract, its financing capabilities. The MORE listing will test whether all conditions are met and how investors value weekly variable dividends backed by a volatile asset.
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