The publicly listed company The Smarter Web Company, headquartered in the UK, holds Bitcoin on its balance sheet and has raised $21 million through the issuance of a Bitcoin-denominated bond, a rare move in the UK capital markets.
In an announcement on Wednesday at the London Stock Exchange, The Smarter Web Company disclosed that it has launched a Bitcoin-denominated bond, raising £15.8 million ($21 million). The bond was fully subscribed with the support of French asset management giant Tobam.
This new product, "Smarter Convert," was designed in collaboration with Tobam, which invests through three funds it manages. Tobam's CEO, Yves Choueifaty, stated that the company is "committed to long-term consistency."
Tobam, which claims to manage over $2 billion in assets by the end of 2024, is no stranger to the cryptocurrency space. As early as 2017, it announced the creation of the first Bitcoin mutual fund aimed at providing access for institutional investors.
Andrew Webley, CEO of Smarter Web Company, stated that the bond structure is "a first in the UK capital markets." He added:
The issuance centers around a 12-month Bitcoin (BTC) denominated bond, which can be converted into Smarter Web Company shares at a 5% premium based on its closing price of $2.60 on Tuesday, corresponding to a conversion price of approximately $2.73.
If all bonds are converted into shares, the company will issue over 7.7 million new shares; if the company's stock price exceeds the conversion price by 50% for 10 consecutive trading days, the company can initiate a forced conversion mechanism.
The forced conversion mechanism refers to the issuer's request to convert the bonds into company stock. If the bondholders do not convert the bonds into stock, the company will repay 98% of the principal in Bitcoin at maturity, with the amount calculated based on the Bitcoin price at that time.
Since the bonds are priced in Bitcoin, the repayment amount will fluctuate with the price of Bitcoin. This issuance allows Smarter Web Company to raise funds without immediately diluting the value of equity while increasing its Bitcoin holdings.
The announcement stated that the premium in this financing reflects the conversion share price being higher than the reference share price. Therefore, compared to traditional equity financing, the dilution is reduced by about 5%.
Prior to this announcement, Smarter Web Company had been steadily increasing its Bitcoin reserves since July. According to data from BitcoinTreasuries.NET, the company currently holds 2,050 Bitcoins, valued at approximately $234 million. At the end of last month, the company added 225 Bitcoins.
Related: The Rise of Money2: The Next Generation Financial System Has Emerged
Original article: “UK Company Smarter Web Company Raises $21 Million Through Bitcoin (BTC) Denominated Bonds”
免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。
