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Does anyone know what SWC’s bitcoin custody arrangement is please?

Phenomenal moves and nothing but open-mouthed, gobsmacked respect for those that are riding the wave but sweet Jesus I can’t believe what I’m seeing here. So much so it was a relief to read this in the FT today and a relief to know I’m not alone with my concerns.

I honestly can’t wait for the first company report and earnings statement.

Your comparison suprised me RetiredIFA.

This is not a tech stock trading at all multiple that reflects potential future earnings. Investors are seeking exposure to an asset which up to now has been hard to access for UK investors. Decreased regulation may be good for bitcoin but it will dilute SWC’s competitive advantage and, when people start looking under the bonnet, I’m afraid they’ll find a very vulnerable company. How long until the companies accounts are due? On this valuation the PE ratio was about 1500% based on the last report, a bit frothy I’d say.

i’m just trying to put some perspective on things - an echo chamber when it comes to investing is for the fundamentalist or the fool.

the ratios of mstr and meta are only part of the picture but yes they’re very relevant to swc. one way to reduce this ratio is for the company to increase inventory via fundraiser, dilution and bitcoin purchase. the other way is the market smashing the sp through selling pressure. crudely calculated 3x current inventory here is 16p. mstr, the benchmark volatility play is less than 2x now. swc’s entire business model is reliant on borrowing, it can’t plough profits into bitcoin because is doesn’t generate any!

all i’m saying is uk etf’s represent a huge risk to their business model and there will be a stark comparison between physical etf trackers issued by household name fund managers and leveraged micro-caps which will basically need to sell equity to fund overheads.

not ****ing on people’s chips - just being realistic.

ETF providers will have been in consultation throughout this process and I wouldn’t be at all surprised if they had a whole suite of products ready to launch, and the marketing to go with it.

I can’t see how this is not a massive problem for SWC. Up to now they’ve enjoyed a rather unique position in the UK where due to a lack of alternatives ‘investors’ have either overlooked or not cared about the underlying business and ignored the simply ridiculous premium they are paying for the bitcoin exposure.

I expect forthcoming ETFs to heavily market the safety of a Physical ETF and expect the FCA to further elude to the fact that their decision is in response to an increase in bucket-shop Treasury chancers with dubious balance sheets.

This combined with the OTC listing (and risk of shorting) could be a real problem for SWC. It’s one thing diluting the market when the tide is on the push but the volume has nowhere to go when the selling pressure starts.

Good luck all

Https://cryptobriefing.com/fca-crypto-etns-retail-ban/

I see the market valuation has this trading at 23x its bitcoin inventory. That’s a serious hype premium, so much so the price of bitcoin is irrelevant to the sp right up to the point where it falls below the average acquisition price, after which it’ll act as a drag to further fundraising.

Reminds me of dot.com era due-diligence.

Gully - this is what myself and some of the others on here are trying to emphasise. The price of bitcoin is irrelevant here, the only way it would have relevance based on SWC’s current SP is if bitcoin was either trading at $1m a coin or if SWC already held £25m bitcoin in the Treasury. The current price is price change of bitcoin has nothing to do with the sp and everything to do with hype and hope.

Dead cat bounce more like

Stating the obvious is not negative manipulation. This was 2x reality price at the last fundraise. Lucky it’s not on the OTCQB or the shorters would have it down to sub-10p already.

I’m all for this bitcoin Treasury model but it’s got to come with some kind of fundamental or the concept will simply descend into the meme-coin type cynicism. A sole trader with an ETSY / EBay business selling novelty pet collars could reverse into a dormant aquis company and compete with SWC on an equal footing…. That’s the problem here.

who doesn’t like a multi-bagger lol!

i’ve held mstr for a while so have weathered a few highs and lows. i’m also fortunately well up so i’ve not got foml here, more a morbid curiosity. sadly swc doesn’t enjoy the same liquidity and being quoted the way it is will be very susceptible to rug pulling and having its **** torn out. mstr will look like a gilt in comparison and that’s saying something. enjoy the ride!

The asset class is one thing but turnover implies working capital is funded in no small way by capital raises. The SP relative to the NAV is very high. This isn’t a tech / AI startup with potential to generate significant income. It’s a treasury play whose value should reflect inventory, all be it at a premium due to its (current) unique position in the UK.

Trading at 8x with a high bitcoin acquisition cost and apparent working capital dependency concerns me.

Check out the SWC micro-company accounts on Companies House… then look at the Director Renumeration following tje RTO. Then can someone explain to me how this company is going to keep the lights on. This valuation is crazy.

Nothing strange going on at all. It’s a fat-finger.

Looks like a mm printed a trade of 21,456 shares at 14:38:01 hrs at 21.99 instead of 12.99p.

This clean energy pledge reductionwill be to walk back in EV targets I reckon, not energy production. The auto industry is squealing and with the recent news about Vauxhalls UK commitments this will be political manoeuvring.

Psychological profit taking level at £6. Probably stating the obvious but don’t freak out if it bounces off it hard.

HODL

It’s the UK governments (and publics) loss that were not more ambitious with SMR.

To RR. the Czech money is as green as the UK’s so while as a citizen I want the UK commitment as a shareholder I’m happy with orders from anywhere… except maybe Iran…

Profit taking and a post-political / budget even vacuum. Nothing more.

Slow and steady from here, horizon is fair with SMR, dividends, narrow body, defence and unresolved Boeing competition issues. A resolution to the Ukraine / Russia conflict looks closer and would be a positive market event however it happens. People need to either top-slice or chill out. Don’t sweat the daily moves and just track the moving average… you’ll live longer that way!

Stop flapping - it’s just a negative market day coupled with today being a RR. news event day with nothing announced yet. These will flop about here for a bit and then be back up pushing highs again.

And ffs stop talking about tree-shaking. Only small cap quote driven AIM dross is vulnerable to a shake as mm’s can change their price and challenge others knowing full well they’re only exposed to the NMS. You’d need a bottomless risk book to try this on a main market stock or take large short positions which would need to be disclosed.

Got to be honest I’m feeling a Trump victory, and not by a margin of error. Harris can’t go from most unpopular VP in history to president elect on media spin alone. Shes got too much baggage.

I think a trump victory will be good for Bitcoin (which I’m cool with as I hold MSTR). I also think the greenback will weaken initially as tariff threats risk a more isolated/ protectionist outlook but that this will be short lived as they threat will be enough to reset the landscape and bring aggressive economies back in line. RR. Is in a sweet spot for defence, energy and aviation. It’s a HODL from me.