Bitcoin News Today: Smarter Web Raises $21M via Bitcoin Bonds with 5 Premium Conversion

The Smarter Web Company has announced a $21 million fundraising initiative through Bitcoin-denominated bonds, a novel approach in UK capital markets, with the structure supported by Tobam as of August 6, 2025 [1]. This initiative allows the firm to strengthen its Bitcoin reserves while minimizing the dilution of existing shareholder equity. The bond offering is convertible into shares at a 5% premium over the company’s stock price of $2.60, setting the conversion price at approximately $2.73. If all bonds are converted, the company will issue over 7.7 million new shares [1].

The innovative structure enables the Smarter Web Company to raise capital without immediate dilution, while also increasing its exposure to Bitcoin. If no conversion occurs, the company will repay 98% of the principal in Bitcoin, with the repayment amount subject to fluctuations in Bitcoin’s price. This method of financing reflects a growing trend of integrating blockchain assets into traditional financial structures, offering a new avenue for capital generation in a market where interest rate volatility remains a challenge [1].

The Smarter Web Company has continued to expand its Bitcoin holdings throughout July, adding 225 BTC in its most recent purchase, bringing its total holdings to 2,050 BTC, valued at approximately $234 million [1]. The bond offering is part of a broader strategy to leverage Bitcoin as a capital reserve and as a tool to attract investors familiar with the cryptocurrency market.

By aligning with Tobam, the Smarter Web Company gains credibility and strategic backing, enhancing the potential for long-term success in its capital-raising efforts. The company’s leadership has emphasized the significance of this move in opening up new capital segments that align with the evolving preferences of investors. The bond structure represents a departure from conventional fundraising models and highlights the increasing role of digital assets in capital formation [1].

This development also aligns with the gradual regulatory clarity emerging in the crypto space, such as recent SEC guidance on liquid staking tokens, which has been viewed as supportive of DeFi and related innovations [2]. While not directly linked to the Smarter Web Company’s bond offering, the regulatory environment is increasingly accommodating to blockchain-based financial instruments.

As the Smarter Web Company continues to explore the potential of Bitcoin-backed financing, it sets a precedent for other firms seeking to innovate in capital structures. The company will need to implement strong risk management protocols to address Bitcoin’s price volatility while maintaining investor confidence. If successful, this model could serve as a template for future fundraising in the fintech and DeFi sectors.

Source:

[1] Smarter Web Company Explores New Fundraising Model with $21 Million Bitcoin-Denominated Bonds Backed by Tobam (https://en.coinotag.com/smarter-web-company-explores-new-fundraising-model-with-21-million-bitcoin-denominated-bonds-backed-by-tobam/)

[2] SEC's guidance on liquid staking tokens a win for DeFi (https://cryptoadventure.com/secs-guidance-on-liquid-staking-tokens-a-win-for-defi-institutions)