Bitcoin News Today: Smarter Web Raises $21M in UK's First Bitcoin-Linked Bond Deal

The Smarter Web Company, a UK-listed web development firm, has raised $21 million through a groundbreaking Bitcoin-denominated convertible bond deal, widely regarded as the first of its kind in the United Kingdom [1]. The issuance, named “Smarter Convert,” allows investors to exchange their bond holdings into company shares at a 5% premium over the current share price of £1.95, set at £2.05 per share [3]. The bond offers a 12-month term with no interest, and investors have the option to convert or receive a 98% refund of the bond’s value based on Bitcoin’s performance [2].

The deal was fully subscribed by TOBAM, a Paris-based asset manager with a long-standing presence in the cryptocurrency space since 2016. TOBAM invested through three of its funds, demonstrating institutional confidence in the model and its potential to integrate Bitcoin into traditional capital-raising structures [2]. If all bonds are converted, the Smarter Web Company will issue approximately 7.7 million new shares, though investors must hold the bonds for a minimum of six months before conversion [4].

To manage risk, the company has capped the amount of Bitcoin it will accept from this bond program at 30% of its unencumbered reserves. This approach ensures that Bitcoin’s price volatility does not disproportionately impact the company’s balance sheet or dilute existing shareholders more than necessary [4]. Additionally, the structure allows the company to increase its Bitcoin holdings in a measured and strategic manner [5].

The offering has been hailed as a milestone in the UK’s evolving digital asset landscape, with analysts noting its potential to serve as a blueprint for future capital-raising efforts in the tech sector. The bond’s Bitcoin-linked repayment features and equity conversion rights create a hybrid instrument that bridges traditional finance and crypto markets [6]. This structure could attract a broader range of investors, particularly those aligned with crypto’s growth narrative while offering downside protection in a volatile environment [8].

The Smarter Web Company has indicated a willingness to explore further Bitcoin-denominated bond offerings, potentially with TOBAM or other institutional partners. The firm sees this model as a transformative approach for capital generation, particularly for tech companies seeking to align with the next phase of financial innovation [5]. The timing of the deal aligns with increased regulatory clarity in the UK regarding digital assets, which has created a more favorable environment for such experiments [8].

By leveraging Bitcoin as a denominated currency and conversion benchmark, the Smarter Web Company has set a precedent that may encourage more firms to adopt similar instruments. The success of this $21 million raise suggests growing institutional acceptance of crypto-linked financial tools, especially in markets where regulatory frameworks are becoming more accommodating [9].

Source:

[1] Cointelegraph - [https://cointelegraph.com/news/smarter-web-company-issues-21m-of-bitcoin-denominated-bonds](https://cointelegraph.com/news/smarter-web-company-issues-21m-of-bitcoin-denominated-bonds)

[2] AInvest - [https://www.ainvest.com/news/bitcoin-news-today-smarter-web-raises-21m-bitcoin-denominated-bond-5-premium-2508/](https://www.ainvest.com/news/bitcoin-news-today-smarter-web-raises-21m-bitcoin-denominated-bond-5-premium-2508/)

[3] Blockonomi - [https://blockonomi.com/uks-smarter-web-locks-21m-bitcoin-bond-deal-with-tobam/](https://blockonomi.com/uks-smarter-web-locks-21m-bitcoin-bond-deal-with-tobam/)

[4] Coinfomania - [https://coinfomania.com/smarter-web-launches-21m-bitcoin-bond-backed-by-tobam/](https://coinfomania.com/smarter-web-launches-21m-bitcoin-bond-backed-by-tobam/)

[5] The - [https://www.cryptotimes.io/2025/08/06/smarter-web-raises-21m-in-uks-first-bitcoin-convertible-bond-deal/](https://www.cryptotimes.io/2025/08/06/smarter-web-raises-21m-in-uks-first-bitcoin-convertible-bond-deal/)

[6] Coin - [https://www.coingabbar.com/en/crypto-currency-news/what-is-a-bitcoin-denominated-bond-smarter-web-tobam-21m-deal?srsltid=AfmBOooJYzqNjQr-JKvL4LS-Q3uxeOwLbfrIAQj8hVSOCGTXardoQTCj](https://www.coingabbar.com/en/crypto-currency-news/what-is-a-bitcoin-denominated-bond-smarter-web-tobam-21m-deal?srsltid=AfmBOooJYzqNjQr-JKvL4LS-Q3uxeOwLbfrIAQj8hVSOCGTXardoQTCj)