Andrew Webley@asjwebley
Like many of us, I often see the start of a new quarter as a useful moment to step back, reflect and reset perspective. There is no doubt that this past quarter has been one of the most challenging for markets in some time. The front page of last weekend's FT noted that global bonds and equities had experienced their largest combined sell-off since 2022. Unsurprisingly, this has been felt across asset managers, equities and digital assets alike, with many markets ending the quarter at valuations that, in my view, reflect macro dislocation and extreme risk aversion rather than underlying progress.
The Bitcoin treasury sector is a clear example of this. Bitcoin itself was down approximately 25% during Q1 (the worst Q1 performance in 8 years), with many Bitcoin treasury company share prices down 20–40% over the same period. But share price is only one metric. If we step back and look at what has happened across the sector, the industry has collectively moved forward in a meaningful way this quarter - in scale, in capital formation, innovation and awareness.
Across the ecosystem, companies continued to raise capital, launch new products, restructure balance sheets, pursue M&A and, most importantly, accumulate or position themselves to accumulate more Bitcoin. @Strategy's STRC success, @Metaplanet's continued capital raising and ecosystem initiatives, @Strive's digital credit products, @H100Group's M&A activity, @_ALCPB's convert restructurings, our own LSE uplisting and FTSE UK Index inclusion plus a growing number of UK-listed companies taking active steps to develop and advance their individual strategies – the underlying direction of travel for the sector has remained positive.
For that reason, when I reflect on Q1, I don’t focus on where share prices finished the quarter; I focus on whether the industry has grown in scale, credibility and visibility. By that measure, the answer is clearly yes. Over time, what strengthens the sector and increases institutional understanding benefits everyone operating within it.
When I look at the set-up for Q2, having a short-term view on both direction and timing remains extremely difficult, although sentiment indicators suggest we are still close to extreme bearishness, which is normally the point at which prices have bottomed.
I remain adamant that the underlying drivers for Bitcoin have not changed. Ongoing global monetary expansion and currency debasement continue to support the long-term case for Bitcoin, and that sentiment will at some point turn again. When it does, investors will return, and the key question they will ask is how they want to express their Bitcoin view - through spot, derivatives, ETFs, equities, or a combination of these.
With that in mind, a major focus for us in Q2 is continuing to raise awareness of why an equity can be a compelling way to gain Bitcoin exposure and the different value propositions it offers to different types of investors. It is important to remember that this sector is still very young - less than 12 months old if we consider the summer of 2025 as the genesis. Many retail and institutional investors still do not fully understand the broader value proposition, which in simple terms is that we provide a solution to the question: “How do I get more Bitcoin?” and the various mechanics and nuances around that.
Our view is that Smarter Web can appeal to a wide range of investors, and the key is ensuring that message is clearly understood. For UK-only investors who cannot easily access Bitcoin directly, we provide exposure through a listed equity. For value investors, we may offer opportunities to buy Bitcoin exposure at a discount. For hedge funds, we provide directional exposure and volatility. For ECM investors, we offer participation in capital raises. For retail investors and family offices, we provide a vehicle to increase long-term Bitcoin exposure. For digital asset managers, that need to outperform Bitcoin, we provide a more volatile possibility. For ETF managers, we can form part of a relevant thematic basket. And for volatility or momentum traders, our stock provides liquidity and price movement to trade.
As part of this process, keeping the market appropriately informed remains very important, and I was pleased that we released our first quarterly update as an LSE-listed company on Thursday.
For those who follow us closely, much of what we publish may already be familiar. However, it is important that we communicate consistently and in the appropriate format so that the broader institutional market can understand our strategy, progress and positioning. Publishing investor updates via RNS and building activity around those updates is an important part of increasing awareness, credibility and visibility with institutional investors over time.
The update outlined our key developments but also provided additional detail on parts of the group that may receive less attention but are equally important, such as our operating business, which I would like to briefly touch on.
My view has always been that a successful Bitcoin treasury company should be supported by a profitable operating business. In February, we had the opportunity to acquire Squarebird, a transaction that “used” approximately 1% of our balance sheet but increased our Group revenue by approximately 10x.
Within the update, we shared that during the quarter the Group generated combined unaudited revenue of £439,203 and net profit before tax of £152,326. The Smarter Web Company Operations Limited generated unaudited revenue of £88,041 and net profit before tax of £51,111, while Squarebird Agency Ltd generated unaudited revenue of £351,162 and net profit before tax of £101,215.
Building a profitable and expanding operating business remains a key strategic priority. It provides a sustainable source of revenue to support ongoing costs, reduces reliance on external capital and enhances resilience across market cycles. I look forward to being able to report further progress at the end of Q2, and I remain confident that expanding the operating business through disciplined M&A is the right approach for our shareholders over the long term.
When I look back at the quarter, I do not think the team could have done anymore.
One conviction that strengthened for me during Q1 is that there is real sophistication in simplicity, particularly when it comes to capital structure. As we move into the next phase of our growth, ensuring we have the right type of capital is crucial - we want to grow, but we want to grow in the right way, not at any cost.
With that in mind, I feel confident that we have a clear plan for Q2 and beyond as we continue our journey to build one of the most significant companies in the UK. As always, we are only able to share certain things at the appropriate time, and I ask for your patience and trust that when the time is right, we will communicate accordingly.
One thing I was very pleased to see this week was that tickets to our conference continue to be sold. This event is not about Smarter Web - it is about a broader mission to educate people on the value of Bitcoin and why it can make sense on a corporate balance sheet, particularly in the UK. Our aim is to bring together as wide a range of speakers and attendees as possible to help grow awareness and understanding. There are still some tickets remaining, and further details can be found on our website.
Normally I would go through the week on a day-by-day basis, but given the Easter break and the shorter week, I thought it would be a good opportunity to step back and reflect more broadly. What I will say is that we have been very busy, but much of the work has involved sensitive projects or conversations with key stakeholders where we need to exercise discretion.
Next week marks the first trading day of the UK tax year for the stock market and brings us closer to our one-year anniversary. Despite a challenging period for markets globally, I am extremely proud of what we have achieved as a company over the last eleven months. The biggest part of that, for me, remains the community everyone who has supported us through both good periods and more difficult ones, and who continues to believe in what we are building and the mission we are trying to achieve in the UK. As always, I appreciate your support and loyalty, and I look forward to continuing to build together in Q2.
As always, a shout out to: @andysmith_asap @johnsthor1 @JohnCoo70815409 @80IQConviction @HenryBTCchef @doublediamond65 @Toffeebdm @matthewkerridge @Michaeljdobbin @Boutiquecapital @mattoshi21 @TuftyRaul @BitcoinPlebUK @Morpheus_DX @BitcoinCartoon_ @bitcoin_philos @jay_dee_ex @CloughsStuff @InvestorSmarter @DrBitcoinM50862 @the_desert_ape @PlutusSaysHodl @ZynxBTC @wildgoosejon @SmarterBuildBTC @ourgoodlifeuk @AFCB12 @Britcoiner62 @SophieSatoshi @levyuk @butler_np @Raj_Devsi @Frank54703905 @SmarterBuildBTC @DivBy21 @BitcoinBee21 and @smarter_dash.
LSE: #SWC | OTCQB: $TSWCF | FRA: $3M8
