The Smarter Web Company secures $30M Coinbase credit line to back bitcoin treasury strategy
The Smarter Web Company (LSE: SWC) has obtained a $30 million strategic credit facility from Coinbase Credit, using its held bitcoin as collateral. Interest will accrue only on amounts drawn, the facility has no fixed maturity date, and is intended to let the company deploy funds into bitcoin immediately after equity raises to reduce settlement timing risk in volatile markets. The arrangement supports SWC’s bitcoin-centric treasury strategy by enabling faster capital deployment and lowering exposure to execution risk during market swings. The company emphasized the facility is secured by its bitcoin holdings. This is a financing, not an equity investment, and terms aim to preserve flexibility while leveraging cryptocurrency collateral.
Bullish
A $30 million credit facility from Coinbase Credit collateralized by bitcoin is likely viewed positively by traders. It signals continued institutional use of bitcoin as treasury collateral and increases liquidity that SWC can deploy quickly into BTC after equity raises, potentially increasing demand. Similar arrangements (e.g., other companies using crypto-backed credit lines) have supported on-chain demand and reduced sell pressure tied to slower cash settlement processes. Short-term, the news could provide modest upward pressure on BTC as it reinforces adoption narratives and shows capital readiness to buy. Long-term, repeated use of crypto-backed credit by corporates can strengthen market structure, improving liquidity and adoption — a bullish structural signal. Risks remain: forced liquidations on sharp BTC drawdowns or covenant triggers could create localized volatility, but the facility’s flexible terms (interest only on drawn amounts, no set maturity) reduce immediate liquidation risk.