Smarter Web Secures $21M in UK’s Groundbreaking Bitcoin Convertible Bond Deal

London's fintech scene just got a crypto-powered jolt.

Smarter Web's $21 million raise isn't just another funding round—it's the UK's first Bitcoin-denominated convertible bond, a bet that institutional money is finally warming to crypto's volatility. The deal sidesteps traditional equity routes, offering investors a hybrid path between debt and digital asset exposure.

Why it matters: When traditional finance meets Bitcoin, eyebrows raise. Convertible bonds let investors hedge—get bond protections now, with optionality to convert to equity (or in this case, BTC exposure) later. It's a structured product for institutions still dipping toes in crypto waters.

The cynical take: Another 'first' for the crypto trophy case, or a sign that even blockchain firms need old-school financial engineering to lure cautious capital? Either way—the City's suits are learning to speak Satoshi.

Key Terms and Risk Management

Investors must hold the bond for at least six months before they can convert it into shares. If the company’s share price rises by 50% above the conversion price for 10 straight days, the company can force investors to convert their bonds into shares. 

Since the bond is denominated in Bitcoin, how much the company will have to pay back depends on the performance of Bitcoin. To manage this risk, the company has limited the amount of bitcoin it will take in from this program to 30% of its unencumbered (free-to-use) Bitcoin reserves.

Benefits and Future Plans

This structure lets the Smarter Web Company raise money without paying interest and with less dilution of current shareholders compared to a typical share sale. It also allows the company to increase its Bitcoin holdings in a cautious and balanced way.

Smarter Web hinted that more Bitcoin-denominated bonds could be offered in future, possibly with TOBAM or other investors. The firm thinks the structure has the potential to revolutionize capital-raising, particularly for tech companies such as itself.

Also Read: Japan’s SBI Holdings Files to Launch Bitcoin, XRP and Gold ETFs