Bitcoin News Today: The Smarter Web Company Issues £21M Bitcoin-Linked Convertible Bond With Full Subscription

The Smarter Web Company has launched an innovative £21 million Bitcoin-denominated convertible bond, dubbed Smarter Convert, with full subscription from French asset manager TOBAM. The deal marks a novel approach in UK capital markets, blending traditional financing with digital asset exposure. TOBAM, through three of its funds, has become a key institutional backer and long-term strategic partner, reinforcing the credibility of the offering [1].

The bond is interest-free and provides investors with two potential exit paths: equity conversion or repayment. Investors can convert their bonds into shares at a 5% premium to the reference share price of £1.95 per share. If not converted within 12 months, the company will repay 98% of the principal, retaining a 2% buffer. Additionally, after six months, the company has the right to force conversion if the share price remains 50% above the conversion price for ten consecutive trading days [2].

A distinctive feature of the Smarter Convert is its Bitcoin-linked structure. The principal is denominated in Bitcoin, meaning the repayment value is directly tied to Bitcoin’s price at maturity. If the cryptocurrency rises, the repayment amount increases, offering upside potential; if it falls, the repayment amount decreases. This structure aligns the company’s financial outcomes with Bitcoin’s market performance [1].

The company has also set a cap on the Bitcoin exposure from the bond, limiting new Bitcoin acquisitions to 30% of its existing unencumbered treasury holdings. This measured approach aims to ensure responsible growth and avoid speculative overexposure. The bond, if fully converted, will issue approximately 7.7 million new shares, representing less dilution than a traditional equity raise [2].

Smarter Convert reflects the company’s broader strategy to integrate Bitcoin into its corporate structure. Since 2023, The Smarter Web Company has accepted Bitcoin as a form of payment and adopted a Bitcoin treasury model. The bond issuance further aligns with its ambition to become one of the largest publicly listed companies in the UK [1].

Yves Choueifaty, CEO of TOBAM, praised the initiative as a benchmark for responsible innovation in capital raising, emphasizing its alignment with long-term strategic goals and downside protection. Andrew Webley, CEO of The Smarter Web Company, described the offering as a strategic milestone, highlighting its potential to serve as a blueprint for future institutional capital structures [2].

The Smarter Web Company provides web development, design, and online marketing services and is actively pursuing an acquisition strategy to expand its client base and recurring revenue. Its Bitcoin integration is viewed as a forward-looking move to align with the evolving financial landscape and growing institutional interest in digital assets [1].

The Smarter Convert represents a significant step in the evolution of capital markets, demonstrating how traditional financing can incorporate modern monetary tools without compromising trust or structure. It signals increasing institutional acceptance of Bitcoin-backed capital instruments and highlights the potential for innovative financing models in the digital age [2].

Source:

[1] https://www.investing.com/news/company-news/smarter-web-company-raises-21-million-through-bitcoindenominated-bond-93CH-4171900

[2] https://www.investegate.co.uk/announcement/rns/the-smarter-web-company-plc--swc/smarter-convert-21-million-subscription/9030515