Smarter Web Issues $21M Bitcoin Bond via Smarter Convert
Smarter Web Company, a UK-listed tech firm, has issued a $21 million Bitcoin bond via its Smarter Convert financing tool. The interest-free, Bitcoin-denominated convertible bond was fully acquired by French asset manager TOBAM across three managed funds. Investors can convert to shares at a 5% premium to the reference price; mandatory conversion is triggered if the share price rises 50% above the conversion price over a sustained period. The 12-month bond offers a 98% refund guarantee in Bitcoin, with repayments adjusted to the BTC price at maturity. This first UK Bitcoin bond enables Smarter Web to secure growth capital without immediate equity dilution and boost its Bitcoin reserves by roughly 30% of its cash holdings, now totaling over 2,050 BTC. The issuance may set a template for future crypto-aligned corporate financing.
Bullish
This issuance of a Bitcoin bond demonstrates rising institutional demand for Bitcoin-based financing and underscores corporate appetite to hold BTC on their balance sheets. By launching a $21 million convertible Bitcoin bond fully subscribed by TOBAM, Smarter Web both secures capital and adds to its BTC reserves, reducing circulating supply. Traders may view this as bullish, as it could drive further demand for Bitcoin bonds and support price appreciation over the medium to long term. In the short term, price impact may be modest, but the precedent set could foster broader adoption of crypto-aligned funding models, reinforcing bullish sentiment.