Bitcoin News Today: Smarter Web Completes $21M Bitcoin-Denominated Bond Deal

The Smarter Web Company has completed a landmark $21 million financing through a bitcoin-denominated convertible bond, marking the first of its kind for a publicly traded UK firm [1]. The bond was fully subscribed by TOBAM, an institutional asset manager with a long-standing presence in the bitcoin market since 2016 [2]. The transaction enables Smarter Web to expand its bitcoin treasury while securing capital for growth, with the bond offering a unique structure that blends traditional finance with cryptocurrency exposure.

The bond allows TOBAM to convert its investment into equity at a 5% premium to the reference share price of £1.95, with the company retaining the right to force conversion if the share price exceeds the conversion threshold by 50% for 10 consecutive days [5]. If no conversion takes place within 12 months, Smarter Web will repay 98% of the principal, adjusted for bitcoin’s market price at the time of repayment [4]. This mechanism ties returns to bitcoin’s performance while offering downside protection to the investor.

Smarter Web CEO Andrew Webley emphasized that the offering represents a new capital-raising segment for the company, complementing its existing funding strategies [3]. The structure aligns incentives between the firm and its investors, as repayment is linked to bitcoin’s price, effectively making the company’s financial performance partially dependent on the digital asset’s trajectory. Proceeds from the bond will also be used to increase the company’s bitcoin holdings, though allocations will remain capped at 30% of unencumbered treasury balances for risk management [5].

The move underscores a growing trend of institutional adoption of crypto-linked financial instruments. TOBAM’s participation highlights confidence in both the company’s long-term prospects and bitcoin’s role as a store of value amid macroeconomic uncertainty [10]. It also signals a broader shift in corporate finance, where bitcoin is increasingly integrated into capital structures, potentially influencing future corporate borrowing and investment strategies [4].

This issuance could serve as a model for future tranches using similar structures, deepening corporate exposure to bitcoin while providing a novel capital-raising mechanism [1]. The bond’s hybrid design, combining fixed-income features with digital asset performance, may appeal to investors seeking diversified risk-return profiles as institutional confidence in cryptocurrency continues to grow [7]. As the market for crypto-linked instruments matures, further innovation in corporate finance is likely to emerge, bridging the gap between traditional financial systems and the evolving digital asset ecosystem [11].

Source: [1] Smarter Web Company raises $21 million through Bitcoin-denominated bond (https://www.investing.com/news/company-news/smarter-web-company-raises-21-million-through-bitcoindenominated-bond-93CH-4171900)

[2] Smarter Web Company Launches UK's First Bitcoin (https://coinpedia.org/crypto-live-news/smarter-web-company-launches-uks-first-bitcoin-denominated-convertible-bond/)

[3] Smarter Web Company - $21 Million Subscription (https://www.aquis.eu/stock-exchange/announcements/5308490)

[4] Smarter Web Company secures $21m in Bitcoin-backed bond from TOBAM (https://www.proactiveinvestors.com.au/companies/news/1076155/smarter-web-company-secures-21m-in-bitcoin-backed-bond-from-tobam-1076155.html)

[5] Smarter Convert - $21 Million Subscription (https://www.investegate.co.uk/announcement/rns/the-smarter-web-company-plc--swc/smarter-convert-21-million-subscription/9030515)

[6] Bitcoin News Today: The Smarter Web Company Issues (https://www.ainvest.com/news/bitcoin-news-today-smarter-web-company-issues-21m-bitcoin-linked-convertible-bond-full-subscription-2508/)

[7] UK's Smarter Web Locks $21M Bitcoin Bond Deal With TOBAM (https://blockonomi.com/uks-smarter-web-locks-21m-bitcoin-bond-deal-with-tobam/)

[10] The Smarter Web Company raises £15.8 million via UK's first Bitcoin-denominated bond (https://uk.investing.com/news/stock-market-news/the-smarter-web-company-raises-158-million-via-uks-first-bitcoindenominated-bond-4205189)

[11] Smarter Web Company Issues UK's First BTC Convertible Bond (https://phemex.com/news/article/smarter-web-company-launches-uks-first-21m-btcdenominated-convertible-bond_14478)