Bitcoin treasury trend gathers pace on junior markets

A growing number of companies listed on London’s junior markets are adopting Bitcoin-focused treasury strategies, with investors eager to support the shift.

The Smarter Web Company, a digital agency planning to adopt what it calls a Bitcoin treasury policy, recently raised £13.4 million from professional and private investors, significantly ahead of its original £8 million target in a heavily oversubscribed funding round.

Part of the new investment will be used to accumulate Bitcoin, effectively building a digital asset reserve with the aim of long-term value appreciation.

Although the term Bitcoin treasury may be unfamiliar, the principle is straightforward: companies purchase cryptocurrency, primarily Bitcoin, to hold as a balance sheet asset.

The model echoes a trend seen among US tech firms and crypto-native businesses. Tesla, for example, owns 11,509 bitcoins worth around $1.2 billion. Strategy, formerly known as MicroStrategy, Mara Holdings, Riot Platforms and CleanSpark are other big crypto holders.

Bitcoin's resurgence has strengthened interest in the approach. The cryptocurrency has risen more than 75% since April last year, peaking at around $111,000 in May before easing to about $103,000.

The rally followed a halving event, a scheduled reduction in the rate at which new Bitcoin is created. This curtails supply and has historically supported higher prices.

Supporters of the cryptocurrency argue the current bull market still has momentum. Forecasts from prominent investors suggest

Bitcoin could reach $200,000 by the end of this year, and possibly $1 million by 2030. Among the most vocal advocates is Cathie Wood, the widely followed US tech investor.

Here in the UK, The Smarter Web Company is not alone in its pivot. Helium Ventures has also moved into the space, along with Coinsilium Group Limited (AQSE:COIN, OTCQB:CINGF), an early AIM adopter of crypto themes. Cykel AI PLC (LSE:CYK) and Vinanz Ltd (LSE:BTC, OTCQB:VINZF), which plans to rebrand as the London BTC Company, are also targeting the sector.

Bluebird Mining Ventures (LSE:BMV), meanwhile, is broadening its strategy to include both gold and Bitcoin, underlining the increasing appeal of digital asset exposure among small-cap listed firms.