Andrew Webley, CEO of The Smarter Web Company Plc (SWC), has made a defiant statement regarding his company's Bitcoin holdings, declaring he would "sell his own arm before selling Bitcoin." This comes despite SWC's Bitcoin treasury being nearly $100 million underwater. Webley dismissed the "Hotel California" liquidity crisis facing other digital asset treasuries, asserting that his company's "healthy operating business" provides sufficient cash flow to service costs without needing to liquidate its Bitcoin stack. SWC, with roughly £220 million in Bitcoin, is the leading corporate Bitcoin holder in the UK.
This stance stands in stark contrast to a recent report by Tokenize Capital, which warns that many Digital Asset Treasuries (DATs) have become "zombie companies," potentially forcing them to sell assets to stay operational. The report suggests that if these firms turn into forced sellers, it could shatter market conviction in Bitcoin.
The debate intensifies when considering MicroStrategy (MSTR), the world's leading corporate Bitcoin holder with over 713,000 BTC—approximately 3.4% of the total supply. This massive concentration gives the company significant influence over market supply. Analysts are examining the potential impact if MicroStrategy were to reduce its position, a scenario that has revived questions about market balance.
Market simulations suggest even a limited sale could cause substantial volatility. A sale of just 1% of MicroStrategy's reserve (about 7,000 BTC) would be larger than the daily net inflows on several major trading venues, potentially widening bid-ask spreads. A 3% sale would resemble the size of some record purchases in reverse, likely activating algorithmic trading strategies. More significant reductions between 5-10% (35,000 to 71,000 BTC) could trigger liquidations from leveraged positions and push prices toward key support zones. A drastic 20%+ cut, releasing over 140,000 BTC, would challenge exchange order books and force derivatives markets to reprice risk.
Despite these concerns, pro-crypto analysts point to rising global trading volumes and the expansion of exchange-traded products as evidence of deeper, more diversified demand than in previous cycles. They argue the current ecosystem is better prepared to absorb additional supply, with institutional desks now maintaining dedicated crypto units to manage such scenarios. MicroStrategy executives have stated that only a prolonged collapse in Bitcoin's price near $8,000 would threaten their debt servicing, reducing expectations of forced selling.
The market recently demonstrated its volatility, with Bitcoin dropping near $60,000 on Thursday before rebounding above $70,000 on Friday, showcasing how fast sentiment can shift. Following this rebound, MicroStrategy's shares (MSTR) surged by more than 23%, signaling a potential recovery for digital asset-focused companies.
