Smarter Web Company finalizes $178M reserves for Bitcoin-backed stock

A UK-listed web services company with nearly 2,878 Bitcoin on its balance sheet is about to do something no British public company has done before: issue preferred stock backed by its crypto treasury.

The Smarter Web Company PLC, trading on the London Stock Exchange under the ticker SWC, is finalizing approximately $178 million in reserves to support what it calls the UK’s first Bitcoin-backed preferred equity instrument.

How the capital restructuring works

To create distributable reserves, SWC proposed a £210 million reduction in its share premium account on June 1, 2026, reclassifying a chunk of its balance sheet from a category where it can’t touch the money to one where it can.

The result would be roughly £132.5 million in distributable reserves, enough firepower to back preferred equity issuances that come with dividend rights. No new shares get created. Total share count stays the same. Net assets don’t change.

Shareholders get their say on June 17, 2026, during a general meeting vote. After that, the proposal needs a stamp of approval from the High Court, which is expected around July 15, 2026.

The Strategy playbook, adapted for London

Strategy, the company formerly known as MicroStrategy, pioneered the corporate Bitcoin treasury model in the US and has used various equity instruments to fund its massive Bitcoin accumulation. SWC is essentially running the same play across the Atlantic.

The company currently holds approximately 2,878 BTC, valued between $178 million and $181 million. SWC adopted its Bitcoin treasury strategy in 2025. The company still runs its original web services operations, but the Bitcoin treasury has become the main event.

CEO Andrew Webley has signaled optimism about the timeline, suggesting the preferred stock issuance could happen earlier than the Q4 2026 window that markets had initially expected. No formal issuance announcement has been made yet.

What Bitcoin-backed preferred stock actually means

Preferred stock sits in a unique spot in the capital structure. It’s senior to common equity but junior to debt. Holders typically receive fixed dividends, making it attractive to investors who want some income stability but are willing to accept equity-like risk.

SWC’s preferred shares would derive their backing from a treasury denominated primarily in BTC, meaning the company’s ability to support those dividends is tied, at least in part, to Bitcoin’s value.

What this means for investors

Bitcoin’s volatility means the asset backing these preferred shares could fluctuate significantly. A sustained drawdown in BTC price could pressure SWC’s ability to maintain dividends, creating a scenario where the preferred stock’s income appeal clashes with the underlying asset’s wild price swings.

The shareholder vote on June 17 is the immediate catalyst. If approved, the High Court confirmation in mid-July would clear the legal runway. With Webley hinting at an accelerated timeline, investors should be watching for formal issuance details well before Q4.

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