The Smarter Web Company, a publicly traded firm based in the United Kingdom that holds Bitcoin on its corporate balance sheet, has successfully raised $21 million through a new Bitcoin-denominated bond offering—a rare development in British capital markets.
In a Wednesday announcement on the London Stock Exchange, The Smarter Web Company revealed that it launched a Bitcoin-denominated bond, which has already attracted £15.8 million ($21 million) in a fully subscribed round backed by French asset management giant Tobam.
The bond, named “Smarter Convert,” was created in partnership with Tobam, which invested through three of its managed funds. Tobam’s CEO, Yves Choueifaty, emphasized the firm’s commitment to long-term alignment as a driving force behind the investment.
Tobam, which reported over $2 billion in assets under management at the end of 2024, is no stranger to the cryptocurrency space. In 2017, the firm launched the first Bitcoin mutual fund aimed at providing institutional investors with access to the digital asset.
Andrew Webley, CEO of The Smarter Web Company, described the bond structure as a “first for the UK capital markets,” adding:
“We believe that this new structure will open up a new segment of capital for the company and complement our existing funding strategies as we pursue our ambition to make The Smarter Web Company into one of the largest publicly listed companies in the UK.”
Convertible bond priced at premium
The offering focused on a 12-month Bitcoin-denominated bond that can be converted into shares of The Smarter Web Company at a 5% premium over its August 5 price of $2.60, setting the conversion price at approximately $2.73.
If all bonds are converted, the company will issue just over 7.7 million new shares. However, if the share price rises more than 50% above the conversion price for 10 consecutive trading days, the company has the option to force conversion.
If the bonds are not converted, The Smarter Web Company will repay 98% of the bond principal in Bitcoin at maturity, with the repayment amount adjusted based on the BTC price at that time.
A different way to fundraise
Since the bond is denominated in Bitcoin, the repayment amount will vary with the price of the world’s first cryptocurrency. This structure enabled The Smarter Web Company to raise capital without immediate dilution of its share value, while simultaneously increasing its Bitcoin holdings.
“The Smarter Web Company has raised capital at a premium, as the Conversion Share Price is higher than the Reference Share Price, resulting in approximately 5% less dilution compared to a traditional equity raise at the bond’s issue date,” the announcement said.
This news comes after The Smarter Web Company continued to build its Bitcoin reserves throughout July. According to BitcoinTreasuries.NET, the company now holds 2,050 BTC—valued at around $234 million—following its most recent purchase at the end of last month, when it added 225 BTC to its holdings.
