Cannon

It has been a challenging week for Bitcoin, with the price experiencing one of its steepest weekly percentage declines since late 2022. However, investors should remember that volatility is an inherent characteristic of Bitcoin. It is also worth recalling that late 2022 marked the bottom of the previous bear market, before Bitcoin went on to reach new all-time highs. While Bitcoin’s performance this year has fallen short of many investors’ expectations, periods of weakness have historically been followed by phases of renewed growth. Since its inception, Bitcoin has repeatedly overcome significant market corrections, regulatory concerns and macroeconomic challenges, ultimately rewarding investors who maintained a long-term perspective. In fact, a number of institutional investors and asset managers have published research demonstrating that, despite its volatility, a modest allocation to Bitcoin has historically improved the risk-adjusted returns of traditional portfolios. One commonly used measure of risk-adjusted performance is the Sharpe ratio, which assesses how much return an investment generates relative to the volatility experienced to achieve those returns. While Bitcoin has often been one of the most volatile assets available to investors, its long-term returns have historically been sufficiently strong that, when combined with traditional assets, it has often improved overall portfolio efficiency rather than detracted from it. Personally, I have a high allocation to Bitcoin and Bitcoin treasury companies at approximately 100% of my portfolio. I have always been open about this and it is what I am comfortable with as I attach little value to most other asset classes including cash. But, whilst not offering financial advice, I do think that everyone should have an allocation to Bitcoin and Bitcoin treasury companies. For most, who do not share my high conviction, perhaps somewhere between 1% and 10% is sensible. There is currently considerable discussion around perpetual preferred equities as what may become one of the most important capital markets instruments available to Bitcoin treasury companies. Given the recent movement in Bitcoin's price, I thought it would be useful to explain these in the context of volatile price movements. We have already reminded ourselves that Bitcoin is volatile. Despite that volatility, I believe it remains the best asset on which to build a corporate treasury. Equally, I believe that perpetual preferred equities represent one of the most attractive structures for raising permanent capital. It can appeal to yield-seeking investors while allowing the benefits generated from deploying that capital into Bitcoin to accrue to ordinary shareholders over time. All forms of capital have a cost. With perpetual preferred equity, that cost is relatively straightforward to understand: the dividend commitment. The key question then becomes whether the return generated from the deployment of that capital exceeds its cost over time. The Bitcoin treasury model is relatively simple in this regard. For example, Strategy currently pays 11.5% on STRC and Strive pays 13% on SATA. Looking at Bitcoin's historical performance, the compound annual growth rate over the last 3, 5 and 10 years has been approximately 39%, 15% and 59% respectively. £1 million invested three years ago would be worth approximately £2.26 million today. £1 million invested five years ago would be worth approximately £2.00 million today. £1 million invested ten years ago would be worth approximately £107 million today. These figures illustrate an important point. While Bitcoin is volatile, the long-term historical growth rate has significantly exceeded the cost of capital represented by current perpetual preferred equity dividend rates. Using the most conservative comparison above, if capital costs 13% per annum and the underlying asset compounds at 15% per annum, value is still being created over time. Of course, this is an intentionally simplified example and does not reflect all the complexities of a real corporate treasury model. However, it serves to illustrate the basic principle behind why a growing number of Bitcoin treasury companies view perpetual preferred equity as an attractive source of long-term capital. Importantly, this approach seeks to minimise many of the challenges associated with other forms of financing while allowing a company to continue building its Bitcoin balance sheet, and increasing Bitcoin per share, over extended periods of time. It is important to note that historical performance does not guarantee future results. The figures above are provided solely to illustrate the relationship between the cost of capital and Bitcoin's historical long-term growth rates and should not be interpreted as a forecast of future Bitcoin performance. On Friday last week, we held the inaugural Bitcoin Treasury Unconference. I have received a great deal of positive feedback since then, and we have now released the individual videos, along with photographs from the event, on our website for everyone to enjoy. We will be holding the event again next year and early bird tickets are already available via our website. Thank you to everyone who attended, spoke at or sponsored the event. On Monday this week, we released two announcements. Firstly, we updated the market regarding warrants exercised since the pre-IPO warrant window was opened. Today, there are just 8,075,600 of these pre-IPO warrants held by external investors. When we listed the business, and Bitcoin treasury companies were far less understood than they are today, these warrants formed an important part of our route to becoming a public company. I am pleased that the warrant overhang has now been substantially reduced. The second RNS on Monday related to a proposed capital reduction and notice of general meeting. There has been speculation online regarding the reasons behind this proposal and I would encourage shareholders to refer to the official announcement for the company's comments. I would also like to ask every shareholder to vote their shares if they have not already done so. Whether you support or oppose a proposal, exercising your right to vote is an important part of being a shareholder. We hope that you will support this important resolution. On Tuesday I had an update session with Squarebird, the business we acquired earlier this year using approximately 1% of our balance sheet enabling us to significantly grow our revenues. I am delighted with the progress they are making on growing the business and look forward to the hard work the team are putting into the projects developing into figures which will then be released in future updates we announce. We are lucky to have such a good business as part of our group. For the remainder of the week, we made only two further announcements, both relating to updated TR-1 notifications from 210k Capital, LP. 210k have been a shareholder since the start of our journey and we are pleased to have Tyler Evans also on our board. These notifications were required because of our increased number of shares in issue and a change of ownership of their parent company. The quantity of shares held by 210k Capital has not changed; only its percentage ownership has changed. Under UK listing rules, significant shareholders must notify the company when certain percentage thresholds are crossed, and the company must then update the market accordingly. Our team has been working exceptionally hard this week. Our focus remains on driving forward the various projects that we are working on, and I appreciate that it can sometimes be frustrating for shareholders not to know everything that is happening behind the scenes. However, we will disclose developments at the appropriate time and, in my view, the direction in which we are heading is the right one for the success of the business. We are fortunate to have one of the most supportive shareholder communities in the Bitcoin treasury space. We will continue pushing forward every day, with speed, discipline and precision, as we work to build what we believe Smarter Web can become. Thank you for your continued support; I never take that support for granted. We are working hard every day to justify the trust you place in us, and I look forward to updating you on our progress as we move forward. LSE: #SWC | OTCQB: $TSWCF | FRA: $3M8

Reminder: you can sign up to The Smarter Web Company email list and get updates delivered straight to your inbox. If you have not yet joined the email list it is worth doing that today. The link is in the comments. LSE: #SWC | OTCQB: $TSWCF | FRA: $3M8

JUST IN: British #Bitcoin Treasury The Smarter Web Company ($SWC) makes the first move to launch UK's first BTC-backed perpetual preferred stock with up to $178 million of dividend-paying capacity. READ MORE: bitcointreasuries.net/news/smarter-w…

A bit of a flush in Bitcoin overnight, but importantly (for those looking shorter term) it held above the early-February lows. If today's candle can finish green, it could create a very compelling setup and get the technical traders extremely excited. More importantly, none of this changes the long-term trajectory. The day-to-day volatility is just noise when viewed against the bigger picture. Across the world, institutions, companies, governments, and investors continue to move toward a Bitcoin standard and rebuild financial infrastructure around it. We stay focused on the mission, ignore the short-term distractions, and keep building. The long-term direction of travel remains the same.

"There's 6% of the world's value in the UK, 9% of global equities, 10% of the world's money... I think it makes it the perfect jurisdiction to repeat the Strategy playbook of what a Bitcoin treasury company can be." The UK asset landscape presented at the Bitcoin Treasuries Unconference UK by Jesse Myres, Head of Bitcoin Strategy at The Smarter Web Company. @Croesus_BTC LSE: #SWC | OTCQB: $TSWCF | FRA: $3M8

You can sign up to The Smarter Web Company email list and get updates delivered straight to your inbox. If you have not yet joined the email list it is worth doing that today. The link is in the comments. LSE: #SWC | OTCQB: $TSWCF | FRA: $3M8

Bitcoin treasury companies in the UK: from adoption to amplification. @asjwebley speech from Bitcoin Unconference Bristol 2026 youtube.com/watch?v=Zxvtzn… LSE: #SWC | OTCQB: $TSWCF | FRA: $3M8

If you missed the Bitcoin Treasuries Unconference UK on Friday, these were the big takeaways for me: • The UK Bitcoin Treasury landscape has coalesced into a new British industry • @asjwebley keynote walked through how Smarter Web is becoming Amplified Bitcoin for the UK, following the Strategy model, detailing a potential path to generating ~55% annualised returns • The UK Asset Landscape makes London one of the best markets in the world for Bitcoin treasury strategy, with ~9% of global equities value, ~10% of global money, and a relative lack of exchange-traded Bitcoin products This event was possible because of the support of the great sponsors shown here (thank you all!), the speakers and panelists who contributed their time and expertise, and the enthusiasm and interest of attendees who spent the day with us in Bristol. Who was at the event? Former members of Parliament, an ex-Chancellor of the Exchequer, a Trustee of the King's Trust, Financial Times journalists, institutional investors, public company service providers at the forefront of Bitcoin in the UK (brokers, lawyers, advisers), in addition to Bitcoin company execs and passionate retail shareholders. ~300 attendees in total, filling the venue (especially at lunch and happy hour) In terms of industry-wide breaking news, CEOs of Strategy (@phongle ) and Strive (@ColeMacro ) pushed the narrative on Bitcoin treasury strategy to new ground, including: • Both stating that they now think 60% amplification is acceptable & attractive. (Strive today announced their latest buys that increase amplification to 57%) • @phongle further commented that higher than 60% might make sense if STRC continued to trade at par at those levels; @ColeMacro then noted and agreed with this comment, saying “it gives me no heartburn” Year 1 for this new UK conference was a huge success. The energy at the venue in Bristol was unmistakably the sign of a burgeoning new national industry. 14 months ago, there wasn’t a single Bitcoin treasury company in the UK – now, it’s an industry filling conference venue halls. This photo of most of the @smarterwebuk team and our conference partners @TimKotzman @ejuline was taken right after the event. Vibes were high! It may be stating the obvious, but the reason any of the above happened is because British Bitcoiners have enthusiastically supported the idea, the mission. The UK wants Bitcoin and Bitcoin-powered equities. And as a result, the UK has its newest industry. For Year 2 of the Bitcoin Treasuries Conference UK in May 2027, the industry will be twice as old as it is now… where will we be by then?

What are institutions really looking for in Bitcoin treasury companies? I sat down with Lance Vitanza, CFA, Senior Analyst at TD Cowen, at the Bitcoin Treasuries Unconference UK 2026 to discuss institutional research, valuation frameworks, capital markets, and the evolving Bitcoin treasury landscape. youtube.com/watch?v=BSeoDd…

SWC just posted a circular for a £210m capital reduction of the share premium account. GM on 17 June, Court hearing 14 July, Effective Date 15 July 2026. In plain English: from 15 July, SWC plc has the legal capacity to pay a preferred dividend. The RNS even spells it out “an alternative equity line which has attached to it a right to receive dividends.” That is prospectus code for a preferred share class. This is step one of a two-step plan. Step two is the Sterling preferred itself. On timing, the chatter I’m seeing puts the issue in Q4. I think that’s too conservative. Here’s why Q3 is more realistic: 1.This is not an IPO. It’s a secondary issue under an existing FCA-listed plc. A supplementary prospectus runs 6–10 weeks and can run in parallel with the court process, not after it. 2.Tennyson Securities is already named as lead broker on the capital-reduction RNS. Brokers don’t appear on procedural housekeeping unless they’re already mandated for what’s next. 3.Anchor demand is pre-built. Saylor relationship, strategic investor on the register, TD Cowen sponsoring research. This is not a cold bookbuild. 4.Andrew compresses. See the “best week to date” sequence in late June 2025 placing Friday, RNS Monday, 200 BTC bought Tuesday, fundraise launched Wednesday, £41m raised Thursday, Saylor meeting in London the same day (😉) 5.TD Cowen modelled £31.1m of preferred proceeds in FY27 (year-end 31 March 2027). To book that, the issue needs to price and accrue dividends before March. Q3 gives you a clean quarter of yield to show institutions. Q4 leaves no margin. Base case: prospectus late July or early August, bookbuild August–September, first Sterling-denominated perpetual preferred priced and admitted by end Q3 2026. The UK has never had a bitcoin-treasury preferred. SWC is about to print the first one.

This is great news for @smarterwebuk and UK Bitcoin treasury companies at large. In case anyone wasn't aware, UK Plcs can't pay dividends without "distributable profits", and a treasury company holding BTC doesn't have distributable profits from BTC appreciation under IFRS, given only realised gains count (and a buy-and-hold treasury typically doesn't realise). This places a structural limitation on UK Bitcoin treasury companies trying to replicate Strategy's STRC playbook. However, SWC just found a way around this. They've been issuing equity since LSE main market listing above par value (not market value, accounting par value of the shares, likely <0.1p), which is currently locked from distribution under UK law as "capital". They've raised £213m of share premium to-date. They're now looking to cancel all £210m of share premium, which really just means pay off a few losses, and then shift the remaining capital around. That cancellation first absorbs SWC's £77.5m of accumulated losses, which are mostly the IFRS impairment hit on Bitcoin's recent drawdown (£70.8m), plus £3.2m of Smarter Convert fair value accounting and £2.7m of admin and Main Market listing costs. The remaining £132.5m drops into distributable reserves, available to back any dividend-bearing instrument the board chooses to issue... cough cough Smarter Digital Credit! Imo this vote should be a resounding yes, given that in one transaction, SWC would clear the impairment overhang and arm the balance sheet for prefs. The specific RNS phrase that stands out to me is: "an alternative equity line which has attached to it a right to receive dividends, or buy-backs of the Company's share capital." Looks like the General Meeting would be 17th June, with court directions and confirmation 3rd-14th July, and if successful a target effective date of 15th July. Having been working on this the past few hours, I believe the first issuance window would be Q3-Q4 2026, if successful. My research shows typically prefs require 5-7 years of dividend coverage, so size estimates from this initial issuance (SWC would keep replenishing their share premium pot on an ongoing basis for future issuances), are as follows, pre collateralisation considerations: - STRC coupon (11.5%): Supports roughly £165-230m of issuance with 5-7 years of dividend coverage - SATA coupon (13%): Supports roughly £145-205m of issuance with 5-7 years of dividend coverage Of course, Strategy's preferred stack is 5x overcollateralised, and STRC alone is 7x overcollateralised. It's therefore reasonable to imply the Smarter Digital Credit would be ~5x overcollateralised, and given SWC currently holds £152.3m of BTC, this places a ceiling and realistic first issuance size of £25-40m. This has the potential to be the beginning of the biggest structural move in European Bitcoin treasuries to-date. Congrats to @asjwebley @the_desert_ape @Croesus_BTC and the rest of the team.

Just a post to state the blindingly obvious. You can bet your bottom dollar (or pound) that Andrew + team are busting a gut to bring UK 🇬🇧prefs to market. They know the potential (STRC/SATA). They know the urgency. They have the creativity and the capabilities. They have the workrate (which is phenomenal). They have the undisputed UK market position. They have the Bitcoin balance sheet. They have a track record of execution. They have the FCA contacts. They have the business and legal advisors. They have Saylor's ear, and an explicit clear runway. They can learn from Strategy's successes and failures. They are flexible in their approach. They have the respect of others in the treasury space. They have a strong, vibrant community of shareholders. Is any of this a guarantee of success? No. Does it dramatically increase the odds of success? Emphatically, YES.

@ZynxBTC No comment. But Q4? That's a long time to wait IMO.

Well it looks like the UK could be the first country to replicate the Saylor perpetual preferred model outside of the US. Smarter Web have just proposed a capital reduction, which is a balance sheet restructuring process that converts the locked share premium into distributable reserves. This is the first definitive step to issuing a preferred in the UK. "Such corporate actions could include the issuance of an alternative equity line which has attached to it a right to receive dividends" It still needs court approval and an IPO of course so not expecting anything until Q4 at the earliest but the path is now clear. Bitcoin-backed products are going to eat fixed-income markets all around the world.

RNS Announcement: Proposed Capital Reduction and Notice of General Meeting Please read the RNS on our website (link in comments). LSE: #SWC | OTCQB: $TSWCF | FRA: $3M8

An update on the pre-IPO warrants. Excluding directors and employees of the Company a further 8,075,600 warrants remain outstanding. LSE: #SWC | OTCQB: $TSWCF | FRA: $3M8

RNS Announcement: Warrants, TVR & Admission of further securities Please read the RNS on our website (link in comments). LSE: #SWC | OTCQB: $TSWCF | FRA: $3M8

Yesterday we held the inaugural Bitcoin Treasuries Unconference UK, in Bristol, bringing together an outstanding group of companies, investors, suppliers and advisers from across the Bitcoin and public markets ecosystem. It was UK focused but with some of the best global companies also supporting. What started as an idea during a conversation late last year with @ejuline and @TimKotzman became a real event with great content, quality conversations, and the chance for people to meet each other, whilst having a little fun at the same time. A huge thank you to everyone who attended, spoke or sponsored the event. A special thank you to @LauraStH1991 and @aw_smarterwebuk at The Smarter Web Company for organising the event so well. The willingness to openly share experiences, challenges and ideas helped create exactly the kind of environment we hoped for - thoughtful, constructive and focused on long-term opportunity. We believe this is only the beginning for the UK Bitcoin treasury movement, and we are excited to play our part in this exciting sector. Monday this week was a bank holiday in the UK. @the_desert_ape joined @RoxomTV for the weekly “The State of Bitcoin Markets” show. I enjoyed watching this as I was at my desk for most of the day trying to catch up on some tasks after getting back from the @BitcoinconfIRL on Sunday afternoon. On Tuesday we announced 10 Bitcoin added to The Smarter Web Company treasury. On Thursday I headed over to Squarebird HQ to film a short video with @JayW132 and @AlexGlasse from @BitcoinColl. We thought that showing some of our operating business in a film was important so that people could see more about how Bitcoin is improving the real-world economy. We are building a balance sheet on Bitcoin and we can use that balance sheet to grow further. After this I spent some time with some of our team as both @tylev and @Croesus_BTC had travelled to the UK for the event. As we put the finishing touches to the event our team got together for a meal in the evening on Thursday and we were joined by a few special friends. It was nice to see everyone together and I really enjoyed it. On Friday we announced the second Bitcoin purchase of the week with a further 9 Bitcoin added to The Smarter Web Company treasury. We now hold 2,878 Bitcoin with a quarter-to-date Bitcoin yield of 15.79%. I often highlight the need to consider all the various analytics figures as a whole and at the Bitcoin Treasuries Unconference UK yesterday @LizardWizardBTC from @StrategyTracker talked about role of data and analytics in Bitcoin treasury company metrics. Friday was of course the big day. Around 300 people attended and I was both pleased, and also slightly relieved, that the first Bitcoin Treasuries Unconference UK was such an enjoyable event. In the evening we also held a VIP dinner, sponsored by @xapobankapp, with 120 people meeting at a restaurant near the venue enjoying some fantastic food, a few drinks and more conversations into the evening. Again, I want to say a huge thank you to everyone who attended, spoke or sponsored the event and The Bitcoin Treasuries Unconference UK will now be an annual event. We have updated our website to enable people to buy early bird tickets for next year. We have not yet announced the day, but I am hoping that it will be the 21 May and when we have the venue fully confirmed we will update the website. Next week we will also aim to get the photos and videos from yesterdays event published so that you can see these. Today I am heading for breakfast with @AlexandreLaizet from @_ALCPB. When we look back at the early days of Bitcoin treasury companies in the years that follow, I think that he will deserve credit for some of the ground breaking actions he has taken. After this I will be spending the day with @TheBitcoin__. In August last year he showed me around Hong Kong and today I will repay the favour by showing him some of the best bits of Bristol. We will film some short videos as we go and share that in due course. Tomorrow, I hope to be able to spend a little time with my family before another busy week and as always, I am grateful to you all for your support. LSE: #SWC | OTCQB: $TSWCF | FRA: $3M8

GM everyone - RNS out this morning, announcing another Bitcoin purchase. We’ve acquired 9₿ (for approximately £0.49m), taking our total to 2,878₿. Our QTD Bitcoin Yield is now 15.79%. This marks our 13th purchase of 2026 (aggregate purchases for this year are 214₿). The purchase was funded through our facility with Coinbase. Total drawn now stands at £18.5m with our Leverage ratio ~13.25%. Importantly, the facility remains both competitive and flexible, with a variable interest rate of 6.75–7.25%, no fixed maturity and repayment at the Company’s discretion, with no additional charges. We believe the next stage of evolution for Bitcoin treasury companies is becoming increasingly clear - the market wants to see balance sheets being optimised through sensible amplification / leverage, rather than relying purely on sentiment. Companies able to access financing, use these tools and create capital market opportunities are more likely to be rewarded a sustained premium to mNAV. As always, we will continue to approach this responsibly and in line with prevailing market conditions. We remain focused on scaling Smarter Web across multiple areas of the business and are grateful for the continued trust and support from shareholders as we advance into our next phase of growth. LSE: #SWC | OTCQB: $TSWCF | FRA: $3M8

Live May 29 x.com/i/broadcasts/1…