Smarter Web issues $21m Bitcoin-denominated convertible bond

Smarter Web Company has issued a Bitcoin-denominated bond convertible into its shares.

Summary

• Smarter Web Company issues $21M bond denominated in Bitcoin.
• Bond will be convertible into the company’s shares or BTC.
• TOBAM already bought the full amount, but the company plans to issue more.

Bitcoin (BTC) is increasingly getting attention among global tradFi firms. On Wednesday, August 6, Smarter Web Company issued “Smarter Convert,” a $21 million convertible bond denominated in Bitcoin, in cooperation with French investment firm TOBAM.

The UK-listed company has already entered into an agreement with TOBAM for the purchase of the $21 million bond. However, Smarter Web plans to issue more of these bonds at market prices to other investors, including TOBAM.

These bonds will enable investors to gain exposure to both Bitcoin and Smarter Web Company. The bonds are interest-free and can be converted into Smarter Web Company shares. If holders choose not to convert, they will receive 98% of the BTC value at the time of repayment.

Bonds like these allow Smarter Web Company to raise capital while offering more flexibility to investors. Because Smarter Web Company is a treasury firm, its shares are more volatile than Bitcoin. For this reason, the bond offers investors additional options for risk management.

Why Bitcoin bonds are a big deal

Bitcoin-denominated bond issuance is a sign that traditional firms and financial regulators are taking the crypto asset seriously. At the same time, it reflects growing interest in Bitcoin among tradFi firms.

Smarter Web Company is a UK-based Bitcoin treasury firm, currently holding 2,050 coins. The firm ranks among the top 25 global Bitcoin treasury companies by assets.

TOBAM is a French investment firm that has been involved in crypto assets since 2016. It was one of the first European asset managers to invest directly in Bitcoin.