Bitcoin News Today: Smarter Web Issues UK’s First Bitcoin-Backed $21M Convertible Bond

The UK-based Smarter Web Company has raised £15.8 million ($21 million) through a novel Bitcoin-denominated bond offering, marking a first in the British capital markets [1]. The offering, fully subscribed by French asset manager Tobam, allows investors to convert their holdings into company shares at a 5% premium over the reference share price of $2.60, set on August 5 [2]. This 12-month convertible bond introduces a hybrid financial structure that ties investor returns to both the performance of the company’s stock and Bitcoin’s price movements [3].

The Smarter Web Company, which holds 2,050 Bitcoin on its corporate balance sheet, used the bond offering to raise capital without immediate equity dilution. The structure allows for the potential issuance of 7.7 million new shares if all bonds are converted, while also offering a 98% repayment in Bitcoin at maturity should conversion not occur [4]. The company's CEO, Andrew Webley, described the offering as a “first for the UK capital markets,” emphasizing its potential to attract new capital while advancing the company’s ambition to become one of the largest publicly listed firms in the UK [5].

This innovative financing mechanism aligns with a broader trend of companies integrating digital assets into traditional capital structures. The Smarter Web Company's strategy reflects a growing interest in leveraging crypto as a funding tool, particularly among investors with long-term exposure to the cryptocurrency market. The offering also highlights how digital assets are increasingly being used to create structured financial products that appeal to a new investor demographic [6].

Tobam, the sole subscriber to the offering, has a history of pioneering crypto-related products, including the first Bitcoin mutual fund in 2017. The firm’s decision to back this bond underscores its confidence in the strategic vision of The Smarter Web Company and the potential of Bitcoin-backed capital structures. The absence of interest payments in the bond offering represents a departure from traditional debt instruments, instead offering investors exposure to both the company’s growth and Bitcoin’s price volatility [7].

This move also signals a shift in how companies and institutional investors are experimenting with digital assets beyond speculative trading. As more firms explore crypto-linked financing mechanisms, the distinction between traditional and digital finance may continue to blur, creating new opportunities and risks for market participants.

Source:

[1] Cointelegraph, Smarter Web Company Issues $21M of Bitcoin-Denominated Bonds, https://cointelegraph.com/news/smarter-web-company-issues-21m-of-bitcoin-denominated-bonds

[2] AInvest, Smarter Web Issues $21M Bitcoin Convertible Bond at 5% Premium, https://www.ainvest.com/news/bitcoin-news-today-smarter-web-issues-21m-bitcoin-convertible-bond-5-premium-2508/

[3] Coinfomania, Smarter Web Launches UK’s First Bitcoin-Backed Convertible Bond, https://coinfomania.com/binance-82500-sol-wintermute-unlock/

[4] Proactiveinvestors.com, Smarter Web Company Secures $21M in Bitcoin-Backed Bond, https://www.proactiveinvestors.com/companies/news/1076155/smarter-web-company-secures-21m-in-bitcoin-backed-bond-from-tobam-1076155.html

[5] Coinness, Smarter Web Company Launches $21M Bitcoin-Denominated Convertible Bond, https://coinness.com/en/

[6] X, Smarter Web Issues $21M, Interest-Free, Bitcoin-Denominated Convertible Bond, https://x.com/BTCTN/status/1952983507820790103

[7] Proactiveinvestors.co.uk, Proactive Live, https://www.proactiveinvestors.co.uk/proactive_live