Bitcoin treasury company erases 7.7M shares after selling 177 BTC – yet Bitcoin per share fell

Smarter Web sold 177.89 Bitcoin to repay an $11.7 million convertible instrument that could have produced 7.72 million new shares.

The July 23 repayment disclosure said the UK-listed Bitcoin treasury company completed the sale at an average price of $65,762 about two weeks before the instrument's maturity.

Each share ended the transaction with less Bitcoin. The BTC pool shrank 6.18%, while the share count in Smarter Web's management-defined fully diluted denominator shrank 2.10%. CryptoSlate calculates that gross BTC exposure fell 6.18% per legally issued share and about 4.17% per management-defined fully diluted share.

On the capital-allocation question, the result is negative: the repayment diluted BTC per share under both relevant denominators while removing a near-term, Bitcoin-linked claim and simplifying the company's capital structure. Public Bitcoin treasury companies must manage two separate quantities: the Bitcoin they own and the capital claims dividing that Bitcoin among shareholders.

… Continue reading the full article at the original source below.