Bitcoin News Today: UK Firm Issues $21M Bitcoin-Denominated Bond in Capital Markets First

The Smarter Web Company, a publicly listed UK-based digital infrastructure firm, has raised $21 million through a Bitcoin-denominated convertible bond, marking a pioneering move in British capital markets [1]. The offering was fully subscribed by French asset manager TOBAM, which has previously invested in the company [2]. This is the first known instance of a UK firm issuing a bond denominated in Bitcoin, blending traditional finance with digital assets [3].

The bond structure, dubbed “Smarter Convert,” allows investors to convert their holdings into company shares at a 5% premium over the reference share price of $2.60, setting a conversion price of $2.73 [4]. If all bonds are converted, The Smarter Web Company will issue approximately 7.7 million new shares. However, the company has a put option that allows it to force conversion if the share price rises by 50% above the conversion price for 10 consecutive trading days [5]. If no conversion takes place, the company will repay 98% of the principal in Bitcoin at maturity, adjusted for BTC’s price at the time [6].

This financing mechanism allows The Smarter Web Company to raise capital without immediately diluting share value, while simultaneously increasing its Bitcoin holdings. The company currently holds 2,050 BTC, valued at approximately $234 million, following a recent purchase of 225 BTC in late July [7]. CEO Andrew Webley emphasized that the bond structure is a “first for the UK capital markets” and aims to support the company’s ambition to become one of the largest publicly listed entities in the UK [8].

TOBAM, which manages over $2 billion in assets, has a history of engagement with cryptocurrencies, having launched the first Bitcoin mutual fund in 2017 [9]. CEO Yves Choueifaty stated that the firm’s investment is driven by a commitment to long-term alignment, suggesting institutional confidence in the hybrid financial model [10].

The bond is interest-free, which may appeal to investors seeking exposure to both the company’s growth and Bitcoin’s volatility [11]. This innovative approach reflects the growing convergence between traditional finance and decentralized ecosystems, as firms increasingly explore blockchain-based assets for capital raising [12]. The involvement of a major asset manager like TOBAM further signals rising institutional interest in crypto-linked investment vehicles [13].

The issuance highlights a potential shift in how companies access capital, particularly those aligned with digital innovation. However, the structure introduces unique risks, such as exposure to Bitcoin’s price swings and regulatory uncertainty [14]. As the crypto and traditional financial sectors continue to integrate, this offering could serve as a model for other firms seeking alternative funding sources [15].

Source:

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

[2] Proactive – https://www.proactiveinvestors.com/companies/news/1076155/smarter-web-company-secures-21m-in-bitcoin-backed-bond-from-tobam-1076155.html

[3] Coinfomania – https://coinfomania.com/binance-82500-sol-wintermute-unlock/

[4] AInvest – https://www.ainvest.com/news/bitcoin-news-today-smarter-web-issues-21m-bitcoin-convertible-bond-5-premium-2508/

[5] X – https://x.com/BTCTN/status/1952983507820790103

[6] CoinNess – https://coinness.com/en/