Smarter Web Buys 10 More Bitcoin Below Its Own Cost Basis — Here's What That Signals

 Smarter Web Buys 10 More Bitcoin Below Its Own Cost Basis — Here's What That Signals

A UK-listed technology company has quietly become one of the more aggressive corporate Bitcoin buyers in Europe — and its latest move is raising eyebrows for a specific reason.

The Smarter Web Company announced on May 26 that it purchased an additional 10 Bitcoin at an average price of £55,786 per coin, bringing its total treasury holdings to 2,869 BTC. The total cost of the latest purchase was approximately £557,865.

What makes this purchase stand out: the company bought at a price significantly below its own average acquisition cost.

Buying Below Cost Basis — A Bold Signal

The Smarter Web Company's average purchase price across its entire Bitcoin position sits at approximately £81,032 per BTC — roughly $109,000 at current exchange rates. Its latest purchase came in at around $74,904 per coin, meaning the company deliberately added more Bitcoin at a discount to what it has previously paid.

This type of behaviour — buying more of an asset when it trades below your average entry price — is known as "averaging down." For corporate Bitcoin treasury strategies, it signals genuine long-term conviction rather than momentum-driven buying.

Coinbase Credit Facility Funds the Strategy

The company disclosed that it continues to use a credit facility arranged with Coinbase to support its Bitcoin purchases. So far, it has drawn £18 million from this facility.

Current leverage stands at 12.19%, with the loan secured against existing Bitcoin holdings. The interest rate on the facility sits between 6.75% and 7.25%, and the company noted that the loan can be repaid at any time without penalty — giving management flexibility to reduce debt exposure if market conditions shift.

Bitcoin Yield: 15.43% Quarter-to-Date

The company highlighted a quarter-to-date Bitcoin yield of 15.43%, a metric it uses to track how BTC holdings grow relative to its fully diluted share count. This figure is becoming an increasingly common reporting metric among public companies running Bitcoin treasury strategies, popularised by MicroStrategy's approach.

Where It Ranks Globally

With 2,869 BTC on its balance sheet, The Smarter Web Company now ranks 27th among publicly listed Bitcoin treasury companies worldwide. While that places it far behind Strategy's 843,738 BTC, it positions the firm as a meaningful player among European corporate Bitcoin holders.

The company, which provides web design, development, and digital marketing services, began accepting Bitcoin payments in 2022. Its treasury strategy has since become a central part of its public market identity.

The Bigger Picture

Corporate Bitcoin adoption continues to accelerate globally. Strive recently disclosed that its preferred stock structure absorbed more than 453 Bitcoin in a single day — surpassing the daily mining supply. Strategy, meanwhile, repurchased $1.5 billion in convertible debt at an 8% discount while continuing to grow its holdings.

The Smarter Web Company's decision to buy below its own cost basis suggests its management remains confident that current prices represent long-term value — regardless of short-term market conditions.

Source: crypto.news