What happened?
The Smarter Web Company, the UK’s biggest holder of Bitcoin, is reportedly looking to buy out its financially struggling competitors in order to acquire their Bitcoin holdings at reduced prices. The strategy was revealed by founder Andrew Webley despite the company’s own shares plunging by 73% from a mid-June peak.
Who does this affect?
This move affects current and potential investors in the Smarter Web Company, as well as any crypto treasury companies that may be trading below the value of their Bitcoin holdings. More broadly, it impacts the overall Bitcoin market and other companies considering investing or already invested in cryptocurrencies.
Why does this matter?
The Smarter Web Company’s strategy could significantly shape the cryptocurrency market. If successful, it could initiate a shift towards consolidation of Bitcoin holdings from less fortunate competitors. This could potentially create a new paradigm, where successful treasury companies purchase scarce assets during market downturns using devalorizing currencies.