The Smarter Web Company has launched Smarter Convert, a bitcoin-denominated convertible bond fully subscribed by institutional investor TOBAM for $21 million. The initiative enables Smarter Web to raise capital while expanding its bitcoin treasury.
Smarter Web Launches $21 Million Bitcoin-Denominated Convertible Bond
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TOBAM Backs Smarter Web With $21 Million Investment
The Smarter Web Company has announced the successful launch of Smarter Convert, an innovative bitcoin-denominated convertible bond, fully subscribed by TOBAM for $21 million. TOBAM, an independent asset manager active in the bitcoin space since 2016, participated through three of its managed funds.
The instrument allows investors to convert bonds into equity at a 5% premium to the reference share price of £1.95, with the company holding the option to force conversion after 6 months if the stock trades 50% above the conversion price for 10 consecutive days. If not converted within 12 months, the company will repay 98% of the bond value, adjusted to bitcoin’s price at maturity.
Andrew Webley, CEO of The Smarter Web Company, said,
We have been building our bitcoin-backed balance sheet with laser focus, and today’s announcement marks yet another first for the UK capital markets. We believe that this new structure will open up a new segment of capital for the company and complement our existing funding strategies.
This structure aligns incentives while offering downside protection and ties repayment to bitcoin performance, creating a unique hybrid between traditional financing and digital assets. Proceeds will also enable Smarter Web to increase its bitcoin holdings, though the total BTC allocation will be capped at 30% of its unencumbered treasury balance for risk management.
According to the company, Smarter Convert could pave the way for future tranches using similar structures, offering a premium capital-raising mechanism while deepening exposure to bitcoin.
