SWC cancels 3 million pre-IPO warrants at 20.6p each, cutting fully diluted share count and improving its quarter-to-date BTC Yield from -0.93% to -0.18%.
To fund the transaction, SWC will draw £650,000 from its recently announced $30 million Coinbase Strategic Credit Facility, covering the purchase price and estimated associated costs, according to the filing. The resulting debt represents approximately 0.40% of the company's Net Asset Value — defined as the market value of Bitcoin held plus treasury cash, less total notional debt.
The warrant cancellation has lifted SWC's quarter-to-date BTC Yield — a KPI measuring the percentage change in the ratio of total Bitcoin holdings to fully diluted shares outstanding — from -0.93% to -0.18%. The company said the debt will subsequently be repaid through a combination of operational cash flow and future equity issuance, with a further update promised once the amount is cleared.
Chief executive Andrew Webley said the improvement represented "a meaningful improvement from -0.93% earlier in the quarter, during what has been a challenging period for the Bitcoin treasury sector."
The recap
• SWC purchased and cancelled 3 million pre-IPO warrants at 20.6p each, for total consideration of £618,000. • The buyback is funded by a £650,000 drawdown from SWC's $30 million Coinbase Strategic Credit Facility, equating to roughly 0.40% of Net Asset Value. • Removing the warrants from the fully diluted share count improved quarter-to-date BTC Yield from -0.93% to -0.18%.
