Bitcoin Jimmy

I wanted to end the quarter with a thank you - both to my team at @bitcoinhodlco and to our shareholders. We all know that markets have been febrile, but in Q1 we've managed to run a successful ATM, our mNAV has been high enough to support this, and there's been sufficient market demand for our shares (with the money going immediately into more Bitcoin). And there's more to come - we've immediately launched a new ATM offering. Onwards into Q2, and thanks again!

@freddienew Just need to get the volume up, Freddie.

We're honoured to join the small group of companies funding Bitcoin purchases via 'at the market' offerings of equity. At a Bitcoin mNAV above 1, Bitcoin bought with new money raised is accretive to shareholders (ie the Bitcoin increase outpaces the increase in shares). More in the piece in the thread on this from our COO, @m1kecrosbie 👇

Can someone help me understand the Deferred Shares transaction? We’ve issued new Ordinary to finance buyback of these shares? So 7m~ Deferred bought for 0.32p… £2.2m ?? This adds new shares to the fully diluted count, or it nets out?? Also why? Just curious

@CalebFranzen I think NB 9060s could elevate the aura of this fit. Love your work. So much noise, value your signals. Hoping to subscribe once markets have turned for me. Lessons learnt. LFG

Cubic Analytics 🤝 China

@btc_overflow It says in the RNS they will not do that

“The PRIMARY use of the Coinbase Credit Facility is to enable the Company to deploy capital into Bitcoin immediately, where deemed prudent, following new equity issues, reducing settlement-related timing risk during periods of volatility. The facility IS NOT INTENDED to be used as a source of long-term debt for Bitcoin purchases.” Got to love it… what does it REALLY mean. Primary = not the only use. Is not intended = not planning to use it for BTC, but this statement doesn’t necessarily preclude it. Regardless… we know below a certain mNAV, share buybacks using debt generate more BTC yield than direct BTC purchases. The RNS says nothing about this use case and it is not precluded by any of the statements and is most definitely within scope of “all other conceivable use cases that aren’t the primary use case”. It is also allowed, approved at the GM. And this will be renewed at the AGM. A trap lies in wait for the bears 😉

Interesting… Is the facility for bridging or for sub-1mNAV buybacks. Materially impacts some of the assumptions I’m modelling 😅

The math on this project should mass-humble every AI lab on the planet. 1 cubic millimeter. One-millionth of a human brain. Harvard and Google spent 10 years mapping it. The imaging alone took 326 days. They sliced the tissue into 5,000 wafers each 30 nanometers thick, ran them through a $6 million electron microscope, then needed Google’s ML models to stitch the 3D reconstruction because no human team could process the output. The result: 57,000 cells, 150 million synapses, 230 millimeters of blood vessels, compressed into 1.4 petabytes of raw data. For context, 1.4 petabytes is roughly 1.4 million gigabytes. From a speck smaller than a grain of rice. Now scale that. The full human brain is one million times larger. Mapping the whole thing at this resolution would produce approximately 1.4 zettabytes of data. That’s roughly equal to all the data generated on Earth in a single year. The storage alone would cost an estimated $50 billion and require a 140-acre data center, which would make it the largest on the planet. And they found things textbooks don’t contain. One neuron had over 5,000 connection points. Some axons had coiled themselves into tight whorls for completely unknown reasons. Pairs of cell clusters grew in mirror images of each other. Jeff Lichtman, the Harvard lead, said there’s “a chasm between what we already know and what we need to know.” This is why the next step isn’t a human brain. It’s a mouse hippocampus, 10 cubic millimeters, over the next five years. Because even a mouse brain is 1,000x larger than what they just mapped, and the full mouse connectome is the proof of concept before anyone attempts the human one. We’re building AI systems that loosely mimic neural networks while still unable to fully read the wiring diagram of a single cubic millimeter of the thing we’re trying to imitate. The original is 1.4 petabytes per millionth of its volume. Every AI model on Earth fits in a fraction of that. The brain runs on 20 watts and fits in your skull. The data center required to merely describe one-millionth of it would span 140 acres.

“BTC Yield on Treasury”… 👀 “Options Strategies” … 👀

This week, @smarterwebuk has raised £1.7m through the ATM-style facility, at just above 1x mNAV. With our announced intention to list on the London Stock Exchange on 3 Feb, trading volumes this week have averaged ~1% of fully diluted share count per day. (Fairly high!)

If my understanding is correct, certain activities (e.g. buybacks) were not possible when preparing the uplisting as this interferes with the details (share counts, etc) that need to get submitted. Does this equally hold true for running the “ATM” between now and an up-listing? Are things effectively frozen until we uplist?

@elonmusk @NewsFromGoogle Apple have truly fumbled this generational technological pivot.

@NewsFromGoogle This seems like an unreasonable concentration of power for Google, given that the also have Android and Chrome

Joint Statement: Apple and Google have entered into a multi-year collaboration under which the next generation of Apple Foundation Models will be based on Google's Gemini models and cloud technology. These models will help power future Apple Intelligence features, including a more personalized Siri coming this year. After careful evaluation, Apple determined that Google's Al technology provides the most capable foundation for Apple Foundation Models and is excited about the innovative new experiences it will unlock for Apple users. Apple Intelligence will continue to run on Apple devices and Private Cloud Compute, while maintaining Apple's industry-leading privacy standards.

Sometimes I am right about things…

Monday :)

I know we on the internet are famous for only reading headlines… @NitherDither thankfully is more diligent. You think it will be easy but it won’t. You can’t just Trojan horse a financial order without resistance. Don’t sit there expecting that SWC won’t meet with similar challenges and possible exclusion from indexes also.

As we move into the New Year we’re excited to learn if a hypothetical move to the London Stock Exchange will come to fruition. I understand that this hypothetical work stream is currently a hypothetical blocker to Bitcoin yielding activity, namely the opportunity, under current conditions, to take on debt and buy back shares. If an uplisting is announced I’m very keen to see what SWC does next. Whilst market sentiment appears to be turning a corner, it remains to be seen if that will hold. Critically, this will determine whether SWC finds itself in a negative or positive mNAV regime. If SWC finds itself with an mNAV >1 then I’m excited to see the volume the LSE might bring and how the new “ATM” framework performs (keen to hear @asjwebley unpack the rationale behind those changes cc: @ourgoodlifeuk). Additionally, the long teased capital blocked by the condition that SWC must be on the LSE. How much, how quickly, and how accretive. If SWC, should find themselves with an mNAV sufficiently below <1, then I am excited to see what activities might be undertaken with respect to debt and share buybacks. In and around 1 mNAV is probably the worst place to be. Regardless, I would be interested to see what other developments have been made, in particular any updates on revenue generation or projects aimed toward revenue generating activity. Increasingly, I view this as critical to neutralising incentives to negative sentiment.

I’ll give you my thoughts. I think it’s probably important to make a distinction between “debt” and “intelligent leverage”. “Intelligent leverage” has been used as a way to describe preferred shares, with those being a type of perpetual debt. I read “debt” in the context of this post as simply meaning some kind of traditional fiat loan collateralised by the balance sheet, tbd on its exact nature, perpetual, interest only, etc. SWC’s balance sheet is not yet large enough to launch prefs, and they remain somewhat unproven in any case, so it will be something in the realm of the second description of debt that I outlined. This debt makes total sense to focus on sub-1 mNAV. Given that in this state, equity based capital raising is no longer accretive. You can only really raise capital via debt. And then put these proceeds towards share buybacks which is the most accretive option sub-1 mNAV. Due attention needs to be given to having a healthy leverage ratio, with consideration given to how that ratio might expand if bitcoin faces further contraction. In this scenario, the balance sheet NAV would contract and the leverage ratio would expand, in theory removing further debt optionality from you, if say, this scenario saw your leverage ratio grow >30%. Anyway, I guess my point is. The ATM and other equity based capital tools make perfect sense above 1 mNAV. Traditional-esque debt and share buy backs make perfect sense below 1 mNAV. And I think we would need to wait until there is a shift in the current sentiment regime before we can proclaim what will and won’t see a BTCTC be given a positive mNAV. But for the time being option exist to create yield in BTC/sh.

@asjwebley absolutely looking forward to 2026 and agree it feels the only way is up from here. Not without some bitcoin turbulence of course. My read here is that you are only considering debt when mNAV is below 1. Above 1 mNAV, ATM is the plan. Personally I believe this is not recognising how the market has moved on. mNAV is no longer awarded to the first movers. It will be awarded to those that earn it through intelligent leverage and scalable operating income. Would appreciate your thoughts on this. Was it your intention to suggest leverage might only be considered Shen below 1x mNAV or am I misinterpreting. Still very much an SWC maxi and trust you and Jesse to play the cards as thy come in 2026.

Ever since founding The Smarter Web Company in 2009, I have always enjoyed January. It is a month when many people choose to start new businesses, which is positive for our operating company as it often leads to new projects and opportunities. But for me, January is also about the renewed energy and optimism that comes with a fresh year - a time when people reflect on what they want to achieve and how they intend to get there. Over the Christmas period, I have taken the opportunity to look back on 2025, both at our own performance and that of our peers. I have reflected on what we did well, where we fell short, and, most importantly, what we can do better. Trying to learn from others where possible. 2025 was not the year many expected for Bitcoin. Despite reaching a local high in October, it ultimately recorded a down year. I was not dissatisfied with this performance; after nearly a decade of investing in Bitcoin, I have learned that it rarely behaves exactly as anticipated. History has shown that periods of weakness are often followed by strength. And the long-term trend is very much up. If we look at previous negative years, they have typically been succeeded by strong recoveries. Taking the post-decline years of 2015, 2019, and 2023, Bitcoin delivered an average annual gain of 93.7%, following an average decline of 55.7%, in the preceding years: -30% (2014) +34% (2015) -73% (2018) +92% (2019) -64% (2022) +155% (2023) While past performance is not indicative of future results, I am highly optimistic about what 2026 may hold for Bitcoin. When I combine that outlook with what we have been building and what we intend to focus on in 2026, my confidence increases further. During 2025, the term “digital capital” began to gain traction, describing companies such as The Smarter Web Company that are deliberately building Bitcoin into their balance sheets as the core capital asset. As this approach develops, different strategies are already beginning to emerge. I am confident that, as the year progresses, further models will appear, allowing the market to learn what works best in different conditions and regions. Against this backdrop, I believe it is helpful to revisit two scenarios we have discussed on numerous occasions, to demonstrate why we believe our model is resilient - not only when Bitcoin sentiment is strong or prices are rising, but also when sentiment is weak or prices are declining. 1. Positive sentiment or rising prices If Bitcoin performs strongly (and SWC trades above 1x mNAV), this represents the most straightforward scenario. In these conditions, our ATM facility would be able to operate effectively, and we would expect robust demand from both short-term momentum investors and longer-term value investors for fund raises in our equity, and our shareholder register should continue to institutionalise. Distributing Smarter Convert, our Bitcoin-backed convertible, should also be more straightforward. Strong price action has the potential to create a positive feedback loop that supports the continued execution of our Bitcoin accumulation strategy. In this context, updating our subscription facility recently was an important step, providing additional flexibility and ensuring we are well positioned as sentiment improves. 2. Negative sentiment or falling prices If Bitcoin trades sideways or declines (with SWC below 1x mNAV), we have been actively exploring a range of alternative tools. These include the responsible use of debt, share buybacks, potential adjustments to the convertible structure, and other options. Discussions on these topics have been ongoing with our advisers, team, investors, and key stakeholders. Some options are more attractive than others, and any decision will ultimately depend on prevailing market conditions. Importantly, the current scale of our balance sheet - holding 2,664 Bitcoin - provides meaningful flexibility and a range of actionable choices. To ensure we are prepared, we have already begun putting several of these tools in place, starting with shareholder approval for buybacks at the recent General Meeting, alongside other initiatives that are progressing but cannot yet be disclosed. Regardless of market conditions, it’s important to remember we remain fully committed to growing our operating business. We are proud of the service we offer and believe we occupy a differentiated position that allows us to scale while maintaining very high operating margins via our focus on advisory, hosting, and ongoing support services. Over time, we expect this operating strength to both support continued Bitcoin accumulation and provide a resilient cash buffer, ensuring the sustainability of The Smarter Web Company no matter where we are in the Bitcoin cycle. In an asset class defined by volatility, our focus remains on discipline (rather than prediction) and sticking to a long-term view. By preparing for a wide range of outcomes and maintaining flexibility in how we raise and deploy capital, we believe we are well positioned to navigate uncertainty while remaining firmly aligned with our long-term objective of growing Bitcoin per share. As I have said before, there is no single “right” way to execute a Bitcoin strategy. Different companies will pursue different approaches depending on their circumstances, stage of development and region. We are confident in the work underway to ensure we have a clear, well-informed understanding of the options available to us across all market conditions, and I look forward to sharing more detail at the appropriate time. As always, I want to thank our community members for their ongoing support and for everything they do to support The Smarter Web Company. Shout out to: @andysmith_asap @johnsthor1 @JohnCoo70815409 @80IQConviction @HenryBTCchef @doublediamond65 @Toffeebdm @matthewkerridge @Michaeljdobbin @Boutiquecapital @mattoshi21 @TuftyRaul @BitcoinPlebUK @Morpheus_DX @bitcoin_philos @jay_dee_ex @CloughsStuff @InvestorSmarter @DrBitcoinM50862 @the_desert_ape @jorddd_ @ZynxBTC @wildgoosejon @SmarterBuildBTC @ourgoodlifeuk @AFCB12 @levyuk @butler_np @Raj_Devsi @Frank54703905 @SmarterBuildBTC @DivBy21 @BitcoinBee21 and @smarter_dash. Finally, while I enjoyed a brief period of downtime over the Christmas break - even with some work continuing in the gap days - it was a welcome opportunity to spend time with my family. As we start January, however, my focus turns firmly to the year ahead and to several initiatives we have been working on that are now approaching the point of announcement. I am confident that a number of these developments will be well received by our shareholders as they become known. 2025 was a year focused on laying strong foundations, and in 2026 we intend to build decisively upon them. AQUIS: #SWC | OTCQB: $TSWCF | FRA: $3M8