TD Cowen Raises Smarter Web Target 90% on MORE Plan
TD Cowen raised its price target for Bitcoin treasury company The Smarter Web Company to £0.73 from £0.64 and retained its Buy rating. The new target implies about 90% upside from the company’s Monday share price of £0.385.
The upgrade followed Smarter Web’s proposal to issue MORE, a new class of perpetual preferred shares. The company aims to raise £15 million to £25 million, subject to shareholder and regulatory approvals. The preferred shares are expected to pay a cumulative variable-rate dividend weekly and would not carry voting rights. TD Cowen said the offering could provide Smarter Web with a longer-term capital source and broaden its financing options.
Smarter Web reported an approximately 11.5% Bitcoin Yield for the year through 2 September, despite selling 177.89 BTC to repay its £11.7 million TOBAM-backed convertible financing. The repayment reduced its holdings to 2,700 BTC, after which the company bought 11.89 BTC and reached 2,712 BTC.
TD Cowen’s valuation remains sensitive to Bitcoin prices. Its base case assumes Bitcoin reaches about $100,000 by December, with upside and downside scenarios of $175,000 and $25,000. For traders, the preferred-share plan may improve Smarter Web’s funding flexibility, but it could also introduce dividend obligations and execution risk. The company’s share price remains highly exposed to Bitcoin volatility and future treasury financing.
Neutral
The immediate market impact is likely neutral because the announcement concerns Smarter Web’s equity financing rather than a direct change to Bitcoin’s supply, demand or network fundamentals. The higher TD Cowen target and continued Buy rating could support Smarter Web shares and improve sentiment toward Bitcoin treasury companies in the short term.
However, the proposed MORE offering is not yet completed. Shareholder approval, prospectus approval and the £10 million minimum fundraising condition remain outstanding. Investors may also weigh the cost of weekly variable-rate dividends, potential dilution from future financing and the risk that preferred-share proceeds are used to maintain or expand BTC holdings during a price downturn.
The company’s reported 11.5% Bitcoin Yield and 2,712 BTC treasury are constructive long-term signals, but its exposure to Bitcoin prices remains substantial. TD Cowen’s wide Bitcoin scenarios, ranging from $25,000 to $175,000, highlight the valuation risk. Similar preferred-equity strategies used by Strategy and other Bitcoin treasury firms have expanded access to capital, but their shares and preferred securities have also remained sensitive to BTC volatility and funding conditions.
For traders, the key short-term catalysts are the 28 September shareholder vote, regulatory approval, the size and pricing of the MORE issue, and Bitcoin’s reaction to the $100,000 base-case forecast. Unless the offering attracts significant demand or Bitcoin breaks decisively higher, the news is more likely to affect Smarter Web’s stock than the broader crypto market.