Bitcoin News Today: UK Tech Firm Issues $21M Bitcoin-Denominated Convertible Bond

Bitcoin price remained stable near $114,000 on Wednesday as The Smarter Web Company, a UK-based technology firm, announced the launch of a $21 million Bitcoin-denominated convertible bond, marking the first such offering by a publicly traded UK company [1]. The bond, fully subscribed by French asset manager TOBAM, is structured without interest and allows investors to convert their holdings into equity at a 5% premium to a reference share price of £1.95 [2]. The company has accepted Bitcoin for payments since 2023, positioning itself as a leader in corporate adoption of the cryptocurrency [3].

Unlike traditional convertible bonds, which are denominated in fiat currencies, this issuance uses Bitcoin as the primary unit of account, potentially setting a precedent for future corporate financial instruments. The principal value of the bond is tied to Bitcoin’s price, meaning repayment amounts will vary depending on the digital asset’s market value. Investors who choose not to convert after 12 months will receive 98% of the principal, adjusted for Bitcoin price movements [4]. This structure offers downside protection while allowing for potential upside through equity conversion.

The move reflects growing institutional interest in crypto-linked financing and follows a broader trend of companies integrating Bitcoin into their financial strategies [5]. The bond’s unique design, combining Bitcoin exposure with equity conversion features, may appeal to investors seeking diversified risk-return profiles [6]. Analysts note that the deal could encourage more firms to explore similar instruments as institutional confidence in Bitcoin continues to build [7]. Smarter Web’s alignment with Bitcoin signals a shift in corporate finance, where digital assets are increasingly viewed as core components of capital structures [8].

TOBAM’s full subscription of the bond highlights the role of institutional investors in mainstreaming crypto-based financial tools. The move demonstrates confidence in Smarter Web’s long-term viability and the potential of Bitcoin as a store of value and hedge against macroeconomic volatility [9]. The issuance also underscores the evolving relationship between traditional finance and the cryptocurrency ecosystem, with Bitcoin now playing a role in corporate funding strategies. As the market matures, more innovative financial instruments may emerge, further blurring the lines between traditional and digital assets.

Sources:

[1] Smarter Web Company raises $21 million through Bitcoin-denominated bond (https://www.investing.com/news/company-news/smarter-web-company-raises-21-million-through-bitcoindenominated-bond-93CH-4171900)

[2] Smarter Web Company Launches UK's First Bitcoin (https://coinpedia.org/crypto-live-news/smarter-web-company-launches-uks-first-bitcoin-denominated-convertible-bond/)

[3] Smarter Web Company - $21 Million Subscription (https://www.aquis.eu/stock-exchange/announcements/5308490)

[4] Smarter Web Company secures $21m in Bitcoin-backed bond from TOBAM (https://www.proactiveinvestors.com.au/companies/news/1076155/smarter-web-company-secures-21m-in-bitcoin-backed-bond-from-tobam-1076155.html)

[5] Smarter Convert - $21 Million Subscription (https://www.investegate.co.uk/announcement/rns/the-smarter-web-company-plc--swc/smarter-convert-21-million-subscription/9030515)

[6] Bitcoin News Today: The Smarter Web Company Issues (https://www.ainvest.com/news/bitcoin-news-today-smarter-web-company-issues-21m-bitcoin-linked-convertible-bond-full-subscription-2508/)

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

[8] UK-Based Tech Company The Smarter Web (https://www.bitget.com/news/detail/12560604898362)

[9] 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/)