Silver Wheaton Shares Rally Over 7% After £13 Million Investment Amid Dilution and Bitcoin Valuation Concerns; TSWCF Drops 17%

Shares of Silver Wheaton Corp (ticker $SWC) experienced a rally of over 7% despite a dilution event, following the company securing £13 million in fresh institutional investment. This capital injection boosted Silver Wheaton's diluted net asset value (NAV) to approximately 9.6 pence per share, with the market-adjusted NAV (mNAV) trading around $2.7 million per bitcoin equivalent. However, some market participants cautioned against overestimating the NAV per share, noting that many calculations exclude substantial dilution from more than 96 million warrants priced at 2.5 pence each. Concerns were also raised about the attractiveness of Silver Wheaton's bitcoin exposure at this valuation, especially compared to mass-market, London Stock Exchange-listed crypto exchange-traded notes (cETNs) offering bitcoin at around $105,000. Meanwhile, the U.S. investor base showed a contrasting response, with shares of $TSWCF, another related vehicle, dropping 17% amid record trading volumes. Analysts highlighted that much of the value in these investment vehicles lies in equity rather than leverage, and premiums can persist if managers continue to grow mNAV through alternative capital structure arbitrage and strategic management. Broader market commentary emphasized the importance of disciplined, long-term investing strategies, cautioning against panic selling during market dips and the risks of holding onto speculative crypto assets after their narratives fade.