Saylor Sees Potential for Bitcoin Treasury Issuers to Strengthen Each Other
Michael Saylor has been advocating for Bitcoin-powered 'Digital Credit' issuers in an essay on X, saying they strengthen each other rather than compete. His argument is that these issuers hold a common reserve asset, and when the price of Bitcoin rises, it lifts all treasuries.
One such issuer is The Smarter Web Company (LON: SWC), which has seen its share price surge 66.4% this year due to plans to sell a new preferred share called MORE. Saylor distinguishes between 'Digital Capital' (Bitcoin), 'Digital Credit' (instruments like Strategy's STRC and Strive's SATA), and 'Digital Equity' (common shares).
The Smarter Web Company has spent over $300 million acquiring Bitcoin, holding 2,747 BTC as of early September. Its MORE share offers a cumulative variable weekly dividend, carries a liquidation preference, and grants no voting rights.
Saylor's warning that individual purchases do not guarantee higher prices and a premium must be earned on equity valuations applies to The Smarter Web Company as well. The sector's volatility is evident in the firm's Bitcoin position, which swung to a $100 million paper loss earlier this year when the price fell below $78,000.
The success of MORE will depend on clearing its FCA hurdle and how investors price a weekly variable dividend backed by a swinging asset.