Bitcoin Bonds and British Wit: How Smarter Web Outsmarted the Market 🤔

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Ah, the United Kingdom-a land renowned for its tea, its weather (or lack thereof), and now, apparently, its knack for turning Bitcoin into bonds. The Smarter Web Company, a publicly traded UK firm that treats Bitcoin like a beloved pet on its corporate balance sheet, has just raised $21 million through a Bitcoin-denominated bond offering. Yes, you heard that right. A Bitcoin bond. In Britain. What could possibly go wrong? 😅

In an announcement that made the London Stock Exchange feel like it had accidentally wandered into a crypto conference, The Smarter Web Company revealed it had launched this curious financial instrument. It managed to rake in 15.8 million British pounds ($21 million) in a fully subscribed round, backed by none other than the French asset management giant Tobam. Ah, the French-always ready to lend their sophistication to someone else’s bold experiment. 🇫🇷

This new product, cleverly named “Smarter Convert,” was crafted in partnership with Tobam, with the French firm investing through three of its managed funds. Tobam’s CEO, Yves Choueifaty, waxed poetic about “long-term alignment,” which sounds like something you’d say after one too many glasses of Bordeaux. But who are we to judge? After all, Tobam isn’t exactly a stranger to the crypto circus-they created the first Bitcoin mutual fund back in 2017, proving they’ve been ahead of the curve-or at least ahead of the chaos.

The Smarter Web Company’s CEO, Andrew Webley, declared this bond structure a “first for the UK capital markets.” Bravo, Andrew! Truly groundbreaking stuff. He went on to say:

“We believe that this new structure will open up a new segment of capital for the company and complement our existing funding strategies as we pursue our ambition to make The Smarter Web Company into one of the largest publicly listed companies in the UK.”

One can almost hear the violins swelling in the background. Or is that just the sound of investors nervously humming? 🎻

A Bond That Converts Like a Shape-Shifter 🪄

Here’s where things get interesting-or, depending on your perspective, slightly absurd. The offering revolves around a 12-month bond denominated in Bitcoin (BTC), convertible into shares of The Smarter Web Company at a 5% premium compared to its Aug. 5 price of $2.60. That brings the conversion price to a neat $2.73. If all bonds are converted, the company will issue just over 7.7 million new shares. But wait, there’s more! If the share price rises by 50% above the conversion price for 10 consecutive trading days, the company can force a diversion. Yes, because nothing screams “financial innovation” like forcing people to convert their bonds. 😏

And if no conversion occurs? Fear not! The company will repay 98% of the bond principal in Bitcoin at maturity, adjusted to reflect the BTC price at the time. So, essentially, you’re betting on Bitcoin’s volatility while pretending it’s a bond. Brilliant? Or bonkers? You decide. 🤷‍♂️

Raising Capital Without Raising Eyebrows 👀

Since the bond is priced in Bitcoin, repayment amounts will fluctuate with the whims of the world’s most unpredictable cryptocurrency. This allows The Smarter Web Company to raise capital without immediately diluting its share value, while still adding to its already impressive Bitcoin stash. According to the announcement, this method results in approximately 5% less dilution compared to a traditional equity raise. Clever, isn’t it?

And speaking of Bitcoin stashes, let’s not forget that The Smarter Web Company has been busy hoarding BTC throughout July. According to data from BitcoinTreasuries.NET, the firm currently holds 2,050 BTC, worth around $234 million, after its latest purchase of 225 BTC last month. One wonders if they’re building a treasury or preparing for the apocalypse. 🌋

So there you have it-a tale of ambition, innovation, and perhaps a touch of madness. Will The Smarter Web Company revolutionize British capital markets, or will this Bitcoin bond become the financial equivalent of a soggy biscuit? Only time will tell. Until then, let’s raise a cup of tea-or perhaps a glass of champagne-to those brave enough to mix Bitcoin with bonds. Cheers! 🥂

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2025-08-06 14:13