British Bitcoin Maxi

🏇🏇 THE FASTEST HORSE 🏇🏇 A brutal week for Bitcoin Treasury Companies, however 2 companies remain in front of Bitcoin YTD @Strive & @smarterwebuk #TheFastestHorse #Bitcoin #ASST #SWC #MSTR

I've been doing quite a bit of research into $MORE since it launched on the London Stock Exchange last Wednesday, and the more I understand the structure, the more interesting I think it becomes. For anyone looking for income from UK-listed investments, an initial 12% annual dividend paid weekly in sterling is difficult to ignore. But I don't think it's simply the 12% that makes MORE interesting. It's the combination of the dividend, the variable-rate mechanism, the reserves behind it and what we've already seen happening with similar products in America. Firstly, let's look at what's available in the UK preference-share market. Lloyds Banking Group 9.25% preference shares (LLPC) are currently yielding approximately 6.7%. Lloyds 9.75% preference shares (LLPD) are yielding around 6.6%. Ecclesiastical Insurance 8.625% preference shares (ELLA) are also yielding approximately 6.6%. Those are running yields based on market prices as of 16 October, rather than the headline coupon rates. All three are established UK preference shares, and investors have been prepared to pay significantly above their £1 nominal amounts to receive that income. Now compare them with MORE. MORE has a £100 dividend reference amount and launched at £90 per share with an initial annual dividend of £12. That represents a 13.33% running yield for those who bought at the IPO price, assuming the dividend rate remains unchanged. That's roughly double the running yield of those established UK preference shares. Naturally, the risks aren't identical. Lloyds and Ecclesiastical are established financial institutions with very different balance sheets. MORE is new, and its issuer has significant exposure to Bitcoin. But I think the yield premium makes it worth investigating. The really interesting comparison, though, is with $STRC and $SATA in America. Strategy's STRC currently carries a 12% annual dividend, calculated on $100 per share, with payments twice monthly. Its dividend rate is variable, and Strategy has made clear that one of its objectives is to encourage the shares to trade consistently close to $100. When STRC trades below that level, management can consider increasing the dividend rate to make the shares more attractive to income investors. A higher dividend can bring additional demand, potentially helping the share price recover towards $100. It's important to understand that this isn't automatic. Strategy considers market conditions, reserves and other factors, and the share price can still fall below $100. Strive, whose ordinary shares trade under $ASST, has developed a similar product called SATA. SATA currently has a 13% annual dividend, paid every business day. Strive tightened its target trading range to $99–$101 earlier this year and has now gone a step further, introducing a binding restriction preventing the company from issuing additional SATA shares below $100. That's a significant difference from a conventional preference share. Strive has demonstrated that SATA can return to around $100, although it hasn't stayed there permanently. The variable dividend and disciplined issuance policy provide tools to help support that objective. Which brings me back to MORE. MORE's initial dividend is 12%, but the board can adjust that rate. It can be increased to a maximum of 20% annually. Reductions are restricted to 0.5 percentage points over any four-week period, and the rate cannot fall below the Bank of England base rate plus 1%. That flexibility could become extremely valuable. If MORE trades below its £100 reference amount, the company has the ability to make the income more attractive by increasing its dividend rate. As an example, at £90 a share, the current £12 annual dividend represents a 13.33% running yield. If the dividend were increased to 14%, the running yield at that same £90 share price would become 15.56%. You can see why variable-rate preferred shares have the potential to attract additional buyers when prices weaken. Of course, increasing dividends also increases the issuer's costs, so it has to be managed responsibly. Another feature I particularly like is that MORE's dividends are cumulative. If a dividend isn't paid, the unpaid amount accumulates rather than disappearing. Those arrears don't earn interest, but while they remain outstanding, restrictions apply to reducing the dividend rate and making distributions to ordinary shareholders. MORE also has a £100 liquidation preference, ranking ahead of ordinary shareholders but behind creditors. And if the company chooses to redeem the shares, the contractual redemption amount is £110 plus accumulated unpaid dividends. That is the company's option, not something shareholders can demand. Now here's something I think deserves far more attention. MORE launched with a dividend cash balance equivalent to approximately TWO YEARS of payments at admission. That's a meaningful starting point for a brand-new income product. The Smarter Web Company, which issues and backs MORE, has also completed a £210 million capital reduction to create distributable reserves. Those aren't £210 million of cash, but they are relevant to the company's legal capacity to make distributions. There's also the Bitcoin treasury and income from its operating businesses, although Bitcoin itself doesn't generate cash income. The two-year cash coverage is based on the position at admission, not a permanent guarantee. If more MORE shares are issued or the dividend rate rises, the dividend obligation grows and the cash balance needs managing accordingly. For me, the next stage is going to be fascinating. MORE has only been trading since 14 October. It needs time to develop liquidity, establish a reliable payment record and build confidence among income investors. STRC and SATA have had longer to establish themselves, build investor followings and demonstrate how variable-rate preferred shares work through changing market conditions. MORE is at the very beginning of that process. What interests me is the potential for the UK income market to start valuing MORE as a serious alternative to more conventional preference shares. A 12% initial dividend, paid weekly in sterling, with a variable-rate mechanism, cumulative dividend protection and approximately two years of initial cash coverage is an unusual proposition in the UK. And if MORE can develop a consistent payment history and meaningful liquidity, I think there could be considerable demand from investors looking for income rather than ordinary-share growth. The UK has a huge investment market, with investors holding income-producing securities in ISAs, SIPPs and other accounts. MORE is eligible for both ISAs and SIPPs, subject to provider availability. I'm not suggesting the price is guaranteed to reach £100, or that a 12% dividend carries the same risk as a traditional bank preference share. But I do think the American experience gives us a very interesting example of what these products can potentially become. And when I compare MORE's initial income proposition with what is currently available in the UK, I can't help thinking this product deserves a lot more attention than it's receiving. It's early days, but I'm very bullish on the potential for $MORE to establish itself in the UK income market. $MORE $SWC $STRC $ASST $SATA

Next time the UK Markets are open we will have two tickers to watch $SWC & $MORE

$SWC is the best performing Bitcoin Treasury Company YTD PLEASE FEEL FREE TO REPOST THIS IMAGE LSE: #SWC | OTCQB: $TSWCF | FRA: $3M8