The Smarter Web Company, a London-listed firm with a growing Bitcoin portfolio, has successfully raised £15.8 million ($21 million) through a Bitcoin-denominated convertible bond—marking a rare milestone for British capital markets.
The offering, known as Smarter Convert, is the UK’s first such structure and allows investors to convert their BTC-backed bonds into equity at a 5% premium.
The move enables the company to secure funding without immediate dilution and expand its cryptocurrency holdings in line with its long-term strategy to become a major player in the UK’s digital finance sector.
Smarter Convert backed by Tobam-managed funds
The 12-month bond offering, launched in partnership with French asset management firm Tobam, drew full subscription. Tobam invested via three of its managed funds and currently oversees more than $2 billion in assets as of end-2024.
Known for pioneering digital asset exposure for institutional clients, Tobam created its first Bitcoin mutual fund in 2017 and has since expanded its digital asset initiatives across multiple jurisdictions.
According to The Smarter Web Company’s announcement on the London Stock Exchange on Wednesday, the convertible bond is denominated in Bitcoin and is structured to convert into shares at $2.73—a 5% premium over Tuesday’s reference price of $2.60.
If all bonds are converted, over 7.7 million new shares will be issued.
Bitcoin pricing offers capital flexibility
The bonds provide flexibility for both the company and bondholders. If the company’s share price appreciates 50% above the conversion price for 10 consecutive trading days, The Smarter Web Company can trigger a diversion, allowing it to convert the bond into equity.
Should bondholders choose not to convert, 98% of the bond’s principal will be repaid in Bitcoin upon maturity. The amount will be adjusted according to the prevailing BTC price at the time.
This structure gives The Smarter Web Company a method to raise capital without immediate equity dilution while further increasing its Bitcoin reserves. According to BitcoinTreasuries.NET, the firm now holds 2,050 BTC, valued at around $234 million.
The most recent addition of 225 BTC was made at the end of July, reflecting a steady accumulation strategy aligned with bullish long-term views on Bitcoin.
Bond raise complements growing BTC strategy
The company stated that this new structure opens up a new segment of capital and complements its existing funding strategies. It offers an alternative to traditional equity raises and achieves approximately 5% less dilution at the bond’s issue date.
In effect, The Smarter Web Company has created a new fundraising model that leverages Bitcoin’s value while offering conversion-linked incentives to investors.
The bond’s success, combined with Tobam’s early crypto adoption and backing, highlights a growing appetite for digital asset-linked capital instruments in traditional financial markets.
The capital raised through Smarter Convert is expected to support the firm’s ambitions to become one of the largest publicly listed companies in the UK while continuing to integrate cryptocurrency exposure into its corporate structure.
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