The Smarter Web Company pioneers Bitcoin-denominated bond in UK capital markets, raising $21 million.
London, UK – The Smarter Web Company, a publicly traded firm holding Bitcoin on its corporate balance sheet, has successfully launched a groundbreaking Bitcoin-denominated bond, raising £15.8 million ($21 million). The offering, a first for the UK capital market, is fully subscribed by French asset manager Tobam.
In an announcement on Wednesday, the London Stock Exchange confirmed the details of the new product, branded “Smarter Convert”. Developed in collaboration with Tobam, the bond was underwritten through investments from three of Tobam’s managed funds. Tobam CEO Yves Choueifaty highlighted the long-term alignment strategy behind the investment.
Tobam, with approximately $2 billion in assets under management as of 2024, has prior experience in the cryptocurrency sphere. Notably, the firm launched the world’s first Bitcoin mutual fund in 2017.
Speaking to the offering’s significance, The Smarter Web Company CEO Andrew Webley described the bond structure as “a first for the UK capital markets,” adding:
“We believe this new structure will open up a new segment of capital for the company and complement our existing funding strategies… [to achieve] our ambition to make The Smarter Web Company into one of the largest publicly listed companies in the UK.”
Conversion terms and repayment mechanics
The bond, a 12-month instrument, features a conversion option priced at a 5% premium to the company’s Tuesday closing share price of $2.60, effectively setting the conversion price at $2.73.
If fully converted, the bond would trigger the issuance of approximately 7.7 million new shares. However, the company retains a “diversion clause,” allowing forced conversion if the share price appreciates 50% above $2.73 for 10 consecutive trading days. If conversion does not occur, the principal (minus a 2% penalty) would be repaid in Bitcoin at maturity, adjusted for prevailing market rates.
Strategic advantages
Funding via a Bitcoin-denominated bond offered The Smarter Web Company distinct advantages. By pricing in Bitcoin, the company secured funding at a value exceeding the equivalent equity raise, minimizing immediate dilution. Simultaneously, the inflows increased its Bitcoin treasury reserves, strengthening its balance sheet.
According to the company, the bond structure achieves capital raising “at a premium based on the Conversion Share Price being higher than the Reference Share Price,” resulting in significant dilution savings compared to traditional equity financing.
Earlier this month, The Smarter Web Company bolstered its Bitcoin holdings further. As reported by BitcoinTreasuries.NET, the company added 225 BTC during July, elevating its total stake to approximately 2,050 BTC, valued at about $234 million.
About The Smarter Web Company
A UK-based, publicly traded technology company listed on the London Stock Exchange, The Smarter Web Company develops solutions in the People Data sector, with Bitcoin forming part of its treasury strategy.
About Tobam
Fondrioux Capital, formerly Tobam, is a global investment house based in France and Luxembourg, managing over €200 billion in client assets globally. It actively participates in the institutional cryptocurrency market.
Source: London Stock Exchange announcement, Tobam press materials, The Smarter Web Company official statements.
