TLDR:
Smarter Web raised $21M in a Bitcoin convertible bond fully subscribed by TOBAM.
The bond offers equity conversion at a 5% premium with Bitcoin-tied repayment protection.
TOBAM’s backing reinforces institutional confidence in crypto-backed financial instruments.
Deal sets a template for future Bitcoin-linked capital raises in UK financial markets.
The Smarter Web Company has just pulled off a first for the UK market. It raised $21 million using a Bitcoin-denominated convertible bond.
The deal was fully taken up by institutional investor TOBAM. This move signals a growing link between crypto-backed financing and traditional capital markets. For Bitcoin investors, it is another sign that large firms are warming to digital assets in structured deals.
How the Bitcoin Bond Works
The company launched “Smarter Convert” to raise capital unconventionally.
According to its announcement, the bond carries no interest and can convert to equity at a 5 percent premium. After six months, if shares trade 50 percent above the conversion price for 10 straight days, the firm can force conversion.
If investors decide not to convert, Smarter Web will repay 98 percent of the bond’s value. The repayment is tied to Bitcoin’s price at maturity, meaning both gains and losses move with the crypto market.
Bitcoin and Capital Raising
Wu Blockchain highlighted the deal on X, pointing out that this is the first UK financing of its kind. TOBAM, a long-time crypto participant, subscribed through three of its funds.
The structure also limits Bitcoin purchases to 30 percent of the proceeds to keep the company’s exposure controlled.
UK-listed Smarter Web Company has announced the issuance of a $21 million Bitcoin-denominated convertible bond, fully subscribed by institutional investor TOBAM. The zero-coupon bond allows conversion into equity at a 5% premium and caps Bitcoin purchases at 30% of the proceeds.…
— Wu Blockchain (@WuBlockchain) August 6, 2025
The share reference price was set at £1.95, with $21 million translating into 7,718,551 potential new shares if all bonds convert. This approach reduces dilution compared to a traditional equity raise, giving the company a premium entry point for new capital.
Why It Matters for Crypto
TOBAM has been involved in Bitcoin since 2016, which adds weight to the deal. Its backing suggests that crypto-backed instruments are starting to earn serious institutional trust.
The company also hinted that similar future bond issuances could attract more investors under the same model.
This structure not only gives Smarter Web fresh funding but also deepens its Bitcoin strategy without overextending. With both downside protection and upside potential, the bond sets a template for other firms eyeing crypto-linked financing.
The UK market has never seen a deal quite like this. For now, it’s a single $21 million raise. But if Bitcoin-backed financing keeps proving itself, it may not be the last.
