British company raises huge amount of money to buy more Bitcoin!
Hello, it's your John!
You may have heard a lot about blockchain and Bitcoin recently, but you may be thinking, "They seem difficult..." Don't worry! In this blog, we will explain the latest technology news in a way that is easy for everyone to understand, in a relaxed atmosphere, like having a cup of coffee.
Well, today's theme is "Companies and Bitcoin. "
The news is that a company in the UK called "Smarter Web Company" has raised a huge amount of money to buy more Bitcoin! What on earth is this all about? Let's take a look together!
First, a quick refresher for those of you who are wondering "What is Bitcoin?"
Bitcoin is a cryptocurrency that can be used on the Internet.Digital moneyIt is not issued or managed by a country or a bank like the yen or dollar, but is managed by computer networks around the world, making it a somewhat new type of money (technically known as "crypto assets" or "virtual currency").
Headline in the news: What kind of company is "Smarter Web Company"?
The company we will be focusing on this time, Smarter Web Company, is based in the UK.
Our main business is the design and production of websites, which serve as the face of stores and companies, and the provision of various services (digital services) using the internet. In other words, we are a company that is active in the world of IT and the web.
Amazing! How much money did you raise?
This Smarter Web Company recently raised new money.GBP 2930 millionannounced that they had collected
"When you say pound, it doesn't mean much..." You may be wondering. Let's convert it to Japanese yen. If we calculate that 1 pound is 200 yen...
29,300,000 GBP x 200 Yen = 5,860,000,000 Yen!
Yes, whatApproximately 58 billion yenThat's an incredible amount! It's not something that an average company can easily raise.
Why such a large amount of money? The aim is "Bitcoin"!
So what will this huge amount of money be used for?
The purpose is exactly "To buy more Bitcoin" That's it!
The strategy of a company to hold Bitcoin as an asset is called "Bitcoin Financial Strategy(A strategy to hold Bitcoin as a company asset and increase its value for the future)” Smarter Web Company has raised a large amount of money this time to further this strategy.
How did you raise the money?
You may be wondering how they managed to raise this huge sum of over 58 billion yen.
Smart Web Company is a new part of the company (which we call "stockHolding stock is like becoming a part owner of the company.) and these are then sold to large investment professionals ("Institutional InvestorsThe funds were raised by having investments made from large corporations (such as insurance companies and pension funds) who hold large sums of money and manage them.
In technical terms, methods such as "Accelerated Bookbuild" and "Subscription" were used, which are ways of raising large amounts of funds relatively quickly.
The shares were priced at £1 per share, which was the same as the price at which the market closed on the Friday before the fundraising was announced (June 1.80th, according to the article).
What's interesting about this news to us?
It would be a waste to just leave it at "Oh, a British company is buying Bitcoin. So what?" There are some interesting points hidden in this news that even blockchain beginners should know about.
- Point 1: Companies are also paying close attention to Bitcoin!
- When you think of Bitcoin, you may have the image of individuals investing in or buying it. However, recently, there has been a movement towards corporate organizations, such as Smarter Web Company, viewing Bitcoin as a "valuable asset" and actively holding it.
- This may be evidence that Bitcoin is not merely a personal hobby or a passing fad, but is gradually increasing its presence in the economy and society.
- Point 2: Is Bitcoin the “gold of the future”?
- One of the main reasons why companies hold Bitcoin is because they expect its value to increase in the future. Some people believe that Bitcoin, like gold, which has long been considered valuable, can be a way to protect company assets from inflation (when prices rise and the value of money effectively declines), as "digital gold."
- However, and this is important, Bitcoin is characterized by very large price fluctuations (i.e., the value can rise and fall dramatically). Keep in mind that while there are opportunities to make large profits, there are also risks of large losses.
- Point 3: Perhaps it's a sign of hope for new technology?
- The action of a company using its own funds to buy Bitcoin is not just about Bitcoin itself, but also about the background to it.Blockchain technologyThis can also be seen as an indication of the high expectations for the future and possibilities of CSR (a system in which information is linked together like a chain and everyone can safely record and manage it).
- A web-related company like Smarter Web Company is likely to be especially interested in new technologies.
What does this mean for Smarter Web Company?
For Smarter Web Company, this fundraising and additional Bitcoin purchase is a major business decision that may determine the company's future.
If the value of Bitcoin increases significantly in the future, the company's assets will also increase significantly. Conversely, if the value decreases, the company will suffer losses.
However, the fact that the company chose this strategy shows that it has strong belief in the future of Bitcoin and believes it will play an important role in the growth of the company. It is truly an investment in the future.
John's comment
It's really interesting to see this news, that a regular company like Smarter Web Company is actively trying to incorporate Bitcoin as part of its "wallet" (financial) strategy. This may be a sign that Bitcoin is slowly but surely becoming more widely accepted in society.
However, it is important to remember that while investing in cryptocurrencies such as Bitcoin holds great potential, it also comes with the risk of price fluctuations. Even if you are interested as an individual, it is important to first gather information thoroughly, understand how it works, and above all, make a careful decision.
This article is based on the following original articles and is summarized from the author's perspective:
Smarter Web Company Raises £29.3M to Grow Bitcoin
Holdings