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Over the last few months, we've spoken about our ambition to become amplified Bitcoin for the UK.

This week, we took another step towards that goal by winding up our Bitcoin denominated convertible notes. As a result, Smarter Web now has a simple and transparent balance sheet. We hold approximately 2,700 Bitcoin, our only debt is the £18.5 million Coinbase credit facility, and the remainder is represented by ordinary shareholders' equity.

With that milestone complete, today's weekly update is a good opportunity to explain why leverage is central to our strategy, and why we believe a simple capital structure is an important part of building an amplified Bitcoin company.

In simple terms, a Bitcoin treasury company creates leverage when it uses fiat financing to acquire additional Bitcoin. This can be achieved through traditional debt, such as our Coinbase facility, or through preferred equity.

For investors who are bullish on Bitcoin, this creates a differentiated value proposition.

As an illustration, if a Bitcoin treasury company finances 20% of its assets with debt and Bitcoin subsequently doubles in value, the company's equity value increases by approximately 125%, all else being equal. In other words, with modest leverage, shareholders' equity outperforms Bitcoin itself (for simplicity, this example excludes financing costs).

This is simply the mathematics of a levered balance sheet.

As part of our transition towards becoming amplified Bitcoin, we recently also updated our analytics dashboard to include Net Bitcoin per Share and related metrics. We believe these are among the most meaningful measures of performance for a Bitcoin treasury company because they better reflect how effectively a company is compounding Bitcoin per Share over time.

Leveraged Bitcoin exposure is not for every investor. However, for those seeking amplified Bitcoin performance, a listed Bitcoin treasury company can offer a compelling option. Public companies are often able to access lower cost capital and more attractive financing terms than individual investors, allowing them to implement leverage more efficiently.

For that reason, we believe a Bitcoin treasury company has the opportunity to offer investors something differentiated: amplified Bitcoin performance.

This is also why many investors - including myself - do not view owning shares in a Bitcoin treasury company as being equivalent to simply holding Bitcoin. Rather, it represents a distinct investment proposition that, for investors seeking amplified Bitcoin exposure through a public company, may offer advantages that holding Bitcoin directly cannot.

Recent market valuations also suggest that investors are willing to place higher multiples on Bitcoin treasury companies offering greater degrees of amplification.

There is one final point worth highlighting.

Amplification works best when investors can easily understand a company's capital structure. Complex instruments can reduce transparency and, in some cases, dilute the economics of leverage. Even where they do not materially impact the economics, they make the investment case harder to understand. Simplicity matters.

We therefore believe that the strongest amplified Bitcoin companies will combine disciplined leverage with a simple, transparent capital structure. This week's simplification of our balance sheet is another step in that direction.

Our ambition remains simple: to build the UK's leading amplified Bitcoin company - one with a transparent balance sheet, disciplined leverage, and an uncompromising focus on growing Bitcoin per Share.

Moving onto some of this week’s highlights. This has been another exceptionally busy week at Smarter Web.

While we've recently made a number of announcements to the market, the reality is that a great deal of our team's effort is currently focused on work that simply isn't at a stage where we can discuss it publicly. As shareholders would expect, we will announce developments when they are ready.

But before covering this week's announcements, I want to recognise the incredible effort from everyone across the business.

When people think about Smarter Web, it's easy to focus on the PLC and our Bitcoin treasury strategy. However, our team is much broader than that. We are an operating business with talented people working every day to improve our services, grow revenues, serve clients, evaluate future acquisitions, and execute our Bitcoin strategy with discipline.

Building a public company around a Bitcoin balance sheet is only possible because there is a real operating business underneath it. Every member of our team plays an important role in that journey, and I want to thank them all for the commitment, professionalism and hard work they continue to demonstrate. The energy across the whole business is fantastic, and there is genuine excitement about what we are building together - both over the coming months and over the longer term.

On Monday we announced another update under our ATM programme, issuing 703,160 ordinary shares and raising approximately £207,227 before expenses at an average price of around 29.5p per share.

As I've said previously, I don't believe individual ATM updates should be viewed in isolation. The important measure is the cumulative impact over months, quarters and years, and specifically whether those capital raises continue to increase Bitcoin per Share. That remains one of the most important metrics I believe shareholders should focus on.

On Tuesday Jesse and I joined Adrian on the True North Now podcast for an in-depth conversation covering Smarter Web, our strategy and the opportunities we see for Bitcoin treasury companies. If you have not yet watched it, you can find the replay on my X timeline.

On Wednesday Jesse and I were back for another Smarter Web Livestream. There wasn't a formal agenda - we simply spent time talking through recent developments, sharing our thoughts on the Bitcoin market and discussing where we think things are heading. It was probably the closest thing to letting shareholders listen in on one of our normal conversations, and we really enjoyed it.

Thursday marked an important milestone as we announced the early repayment of the Smarter Convert facility.

The facility was repaid approximately two weeks ahead of schedule through the sale of 177.89 Bitcoin. Under the agreement, at least 98% of the proceeds were required to be reinvested into Bitcoin. We chose to reinvest 100%, which meant repaying the full Bitcoin denominated amount.

More importantly, the transaction removes the associated potential dilution of approximately 7.7 million shares and leaves the Company with a simpler capital structure and a treasury of 2,700 BTC. As I explained earlier in this update, I believe this simplification is an important step in building the UK's leading amplified Bitcoin company.

As I write this update, the team remains hard at work on a number of initiatives across both the operating business and our Bitcoin strategy. Some of those will become public in due course, while others are simply part of the continuous work required to build a stronger company every week.

Our focus remains unchanged: continue growing the operating business, continue strengthening the Bitcoin balance sheet on a Bitcoin per Share basis, remain disciplined in capital allocation, and patiently wait for the right acquisition opportunities when they arise.

We're excited about what lies ahead - not just over the coming weeks and months, but over the years to come. Every step we take today is about building stronger foundations for both the opportunities immediately in front of us and the long-term future we believe is possible.

Thank you for continuing to support Smarter Web. We appreciate every shareholder who has chosen to join us on this journey. I look forward to updating you again next week.

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