Smarter Web Sells Bitcoin to Repay $11.7M Convertible Debt, Aims to Avoid Equity Dilution

The Smarter Web Company (Smarter Web), a UK-listed entity, announced on Thursday that it has strategically sold 177.89 Bitcoins to fully repay a convertible debt instrument valued at approximately $11.7 million. This move, executed ahead of schedule, signals a shift in the company’s capital allocation strategy, according to its CEO.

The early repayment of the “Smarter Convert” convertible financing tool to French asset management firm TOBAM Group occurred roughly two weeks prior to its scheduled maturity. To facilitate this, Smarter Web liquidated 177.89 Bitcoins at an average price of $65,762 per coin, generating $11,698,540, which was entirely utilized for the debt’s extinguishment.

Under the terms of the original agreement, signed in August 2025, Smarter Web was mandated to allocate at least 98% of the financing proceeds into Bitcoin. The company ultimately chose to invest 100% of these funds into the cryptocurrency, thereby necessitating the full repayment of the principal amount.

Strategic Repayment Mitigates Future Dilution Risks

Smarter Web highlighted that this proactive redemption of the convertible financing instrument effectively eliminates the potential future issuance of 7,718,551 ordinary shares, thereby averting significant equity dilution. Furthermore, both the 177.89 Bitcoins sold and the previously potential new shares have been removed from the company’s fully diluted financial statements. The company emphasized that this early repayment was initiated by Smarter Web and received full support from TOBAM.

Smarter Web formally launched its Bitcoin treasury reserve strategy in April 2025, building on an earlier policy amendment in 2023 that enabled the company to accept Bitcoin payments from clients. Since then, the company has successfully raised over £225 million and invested approximately £233 million (equivalent to about $311 million) into Bitcoin, with nearly all capital raised being allocated to its Bitcoin reserves. Following this recent sale, Smarter Web retains a substantial holding of approximately 2,700 Bitcoins.

CEO: Convertible Financing No Longer Aligns with Evolving Capital Strategy

Andrew Webley, CEO of The Smarter Web Company, articulated that the company’s capital allocation strategy must evolve in tandem with its growth trajectory. He stated:

“As The Smarter Web Company continues its growth, our capital allocation strategies naturally evolve. Moving forward, while we acknowledge the advantages of both fiat and Bitcoin-denominated convertible instruments, we no longer view them as the most suitable capital solutions for our company.”

Bitcoin Sale Undeterred Stock Performance, Despite Analyst Downgrade

Despite the sale of a portion of its Bitcoin holdings to repay financing, Smarter Web’s stock performance remained robust. Data from the London Stock Exchange (LSE) indicated that Smarter Web (SWC) shares were up nearly 2% in early trading on Thursday.

However, investment bank TD Cowen had earlier this week revised its outlook for Bitcoin, consequently cutting Smarter Web’s stock target price by 36%. This adjustment reflects a more conservative market valuation for companies heavily invested in cryptocurrency assets.