Bitcoin News Today: Smarter Web Raises $21M via Bitcoin-Denominated Bond with 5% Premium

The Smarter Web Company, a publicly traded UK-based firm with Bitcoin held on its corporate balance sheet, has successfully raised £15.8 million (approximately $21 million) through a Bitcoin-denominated bond offering [1]. This move is notable as it marks a novel approach to corporate financing in the UK capital market. The bond, known as "Smarter Convert," was fully subscribed by French asset manager TOBAM, which invested through three of its funds. TOBAM, a firm with over $2 billion in assets under management as of the end of 2024, is not new to the cryptocurrency sector, having launched one of the first Bitcoin mutual funds in 2017 [2].

The bond structure is designed as a 12-month convertible bond denominated in Bitcoin, offering a 5% premium over The Smarter Web Company’s share price of $2.60 as of August 5. This sets the conversion price at around $2.73. If all bonds are converted, the company will issue approximately 7.7 million new shares [3]. The offering provides the company with flexibility: if the share price rises by 50% above the conversion price for 10 consecutive trading days, the firm can trigger a diversion clause, potentially avoiding full conversion. Alternatively, if no conversion takes place, the company will repay 98% of the bond principal in Bitcoin at maturity, adjusted for BTC price fluctuations at the time [4].

This financing method allows The Smarter Web Company to raise capital without immediately diluting its share value while also increasing its Bitcoin holdings. According to the firm, the capital raise was achieved with approximately 5% less dilution compared to a traditional equity offering [5]. The Smarter Web Company currently holds 2,050 BTC, valued at around $234 million, having added 225 BTC to its holdings in late July [6].

The issuance reflects a growing trend of traditional firms leveraging decentralized finance (DeFi) and crypto-based instruments to raise funds. The absence of interest payments in the bond suggests confidence in the company’s future growth and its ability to generate returns through equity appreciation rather than traditional debt structures [7]. The involvement of an institutional investor like TOBAM further signals the increasing acceptance of blockchain-based financial products in mainstream finance.

From a market perspective, the Smarter Web Company’s bond offering introduces a new dimension to corporate capital raising by incorporating digital assets into the equation. It could inspire other firms—particularly those in sectors with rising crypto adoption—to explore similar structures. The deal also highlights the evolving relationship between traditional financial institutions and the crypto ecosystem. As more institutional players explore alternative assets and innovative investment vehicles, the traditional boundaries between conventional and decentralized finance are expected to continue blurring [8].

The Smarter Web Company’s CEO, Andrew Webley, emphasized the significance of the transaction, calling it a “first for the UK capital markets” and expressing confidence that the structure would complement existing funding strategies while supporting the company’s ambition to become one of the UK’s largest publicly listed firms [9]. The innovative nature of the bond aligns with the company’s broader strategy to integrate blockchain technology into its business model.

Source:

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

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

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

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

[5] UK's Smarter Web Company Raises $21M via Bitcoin-Denominated Bonds – Advfn (https://mx.advfn.com/bolsa-de-valores/COIN/BTCUSD/crypto-news/96574104/uk-s-smarter-web-company-raises-21m-via-bitcoin)

[6] Smarter Web Issues $21M Bitcoin-Denominated Convertible Bond – CoinNess (https://coinness.com/en/)

[7] Binance Transfers 82,500 SOL to Wintermute Ahead of Smarter Web Bond – Coinfomania (https://coinfomania.com/binance-82500-sol-wintermute-unlock/)

[8] SEC's Guidance on Liquid Staking Tokens a Win for DeFi, as Smarter Web Raises $21M – Crypto (https://cryptoadventure.com/secs-guidance-on-liquid-staking-tokens-a-win-for-defi-institutions)

[9] UK's Smarter Web Company Raises $21M via Bitcoin-Denominated Bonds – CoinGecko (https://www.coingecko.com/en/coins/amazon-xstock)