UK’s Smarter Web Makes Crypto History: Launches $21M Bitcoin-Denominated Convertible Bond
London’s fintech scene just got a jolt of crypto adrenaline.
Smarter Web—the UK-based tech firm—just dropped the first-ever Bitcoin-denominated convertible bond. At $21 million, it’s a bold bet on crypto’s role in corporate finance. TradFi banks? Probably updating their PowerPoints as we speak.
Why it matters: This isn’t just fundraising—it’s a stealth attack on fiat-dominated debt markets. The bond lets investors convert to equity, blending Bitcoin’s volatility with traditional finance’s hunger for yield. Cue the institutional FOMO.
The cynical take: Nothing says ‘bull market’ like companies finding new ways to borrow against speculative assets. At least they didn’t call it ‘DeFi 2.0.’
Bottom line: Whether this flops or flies, it’s proof that crypto’s creeping into finance’s plumbing—one bond at a time.
Revolutionary Bond Structure Offers Bitcoin Upside with Downside Protection
The convertible bond includes several unique mechanisms designed to protect both issuer and investor interests in volatile market conditions over its 12-month term.
After an initial six-month period, Smarter Web can force conversion to equity if shares trade 50% above the conversion price for ten consecutive trading days, effectively capping the company’s Bitcoin exposure risk.
Conversely, if bondholders opt against conversion at maturity, the company will repay 98% of the bond’s Bitcoin-adjusted value and retain 2% to offset transaction costs.
This Bitcoin denomination means repayment amounts will fluctuate with cryptocurrency prices rising if Bitcoin appreciates and falling if it declines, while conversion terms remain denominated in British pounds.
If all bonds convert to equity, approximately 7.7 million new shares WOULD be issued, calculated by dividing the $21 million at current exchange rates by the £2.05 conversion price.
TOBAM CEO Yves Choueifaty described the structure as offering “prudent downside protection, premium equity participation, and a Bitcoin-denominated structure that reflects our conviction in Bitcoin as the next cornerstone of trust.”
Similarly, Smarter Web CEO Andrew Webley positioned the offering as expanding funding options, stating the deal “marks yet another first for the UK capital markets” and expressing confidence it will “open up a new segment of capital for the Company.”
Corporate Bitcoin Financing Evolves Beyond Pure Equity Dilution Models
This convertible bond structure is yet a potential evolution in how Bitcoin-focused companies access capital markets, moving beyond the pure equity dilution model popularized by MicroStrategy.
The new approach offers a middle path between traditional debt and equity financing, potentially addressing concerns raised by analysts about excessive shareholder dilution in the corporate Bitcoin treasury space.
Smarter Web’s aggressive Bitcoin accumulation strategy has generated remarkable returns, with the company achieving a 49,198% year-to-date BTC yield through multiple purchases throughout 2025, including 325 Bitcoin in July and 196.8 Bitcoin in June.
Smarter Web Company crosses 2,000 Bitcoin mark after $27 million purchase reaching top 25 global corporate rankings with 49,198% YTD yield.#Bitcoin #Treasuryhttps://t.co/cDM2etAMnF
The company has invested £166.8 million total at an average price of £81,346 per coin, positioning itself among the top 25 global corporate Bitcoin holders with approximately £500,000 in remaining treasury cash for future deployments.
However, this aggressive strategy has driven significant stock volatility, with shares falling 15% after recent fundraising despite being up 274% year-to-date.
Meanwhile, Japanese Bitcoin investment firm Metaplanet recently filed to raise $3.6 billion through preferred stock offerings, demonstrating continued appetite for innovative financing structures in the sector.
The broader corporate Bitcoin treasury movement has seen over 283 companies accumulate 3.64 million Bitcoin collectively, though some industry observers question the sustainability of current strategies.
In fact, Galaxy Digital’s Michael Novogratz recently suggested the market may have reached “peak treasury company issuance,” shifting focus to which existing players will achieve meaningful scale.
Even earlier this year, VanEck’s Matthew Sigel warned that companies issuing shares NEAR their Bitcoin net asset value risk creating “erosion” rather than capital formation.
