Bitcoin price remained steady around $114,000 on Wednesday as Smarter Web Company, a UK-based technology firm, announced the launch of a groundbreaking $21 million Bitcoin-denominated convertible bond, marking another milestone in the growing institutional adoption of Bitcoin-based financial instruments.
The three-year convertible bond, denominated in Bitcoin, represents one of the first such offerings by a publicly traded company in the United Kingdom. The innovative financial instrument allows investors to participate in both Bitcoin’s potential price appreciation and the company’s equity growth.
“We have been building our Bitcoin-backed balance sheet with laser focus, and today’s announcement marks yet another first for the UK capital markets. I am grateful to Yves and his team for their collaboration and support in bringing this innovative structure to life,” said Andrew Webley, CEO of The Smarter Web Company. “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.”
This development comes amid a surge in corporate Bitcoin adoption, with the number of public companies holding Bitcoin on their balance sheets rising to over 200 in just over few months. The trend has accelerated following recent regulatory clarity in the United States and growing institutional acceptance of Bitcoin as a legitimate treasury asset.
We’re witnessing a transformation in how companies approach Bitcoin. The innovation we’re seeing in financial instruments, from Metaplanet’s preferred shares to Smarter Web’s Bitcoin bonds, suggests we’re entering a new phase of corporate Bitcoin adoption.”
The bond was offered in a fully subscribed round backed by the French asset management giant Tobam, highlighting growing mainstream acceptance of Bitcoin-denominated financial products.
The structure of the bond also reflects evolving approaches to corporate Bitcoin adoption. Unlike traditional convertible bonds, which are denominated in fiat currencies, Smarter Web’s offering uses Bitcoin as the primary unit of account, potentially setting a precedent for future corporate financial instruments.
This issuance represents a significant innovation in corporate finance. By denominating the bond in Bitcoin, Smarter Web is not just adding Bitcoin to its treasury – it’s embracing Bitcoin as a fundamental part of its financial architecture.
The company joins a growing list of firms exploring innovative ways to gain Bitcoin exposure, following recent moves by Metaplanet, Strategy, and others. The trend has accelerated particularly in the technology sector, where companies are increasingly viewing Bitcoin as both a treasury asset and a strategic technology investment.
Market observers note that these developments could herald a new era of Bitcoin adoption, with companies moving beyond simple treasury holdings to more sophisticated financial instruments. The success of Smarter Web’s bond issuance may encourage other firms to explore similar Bitcoin-denominated financial products.
As Bitcoin price continues to trade around $114,000, the market appears to be digesting these institutional developments against a backdrop of broader macroeconomic uncertainty. However, the increasing variety of Bitcoin-based financial instruments suggests growing confidence in the asset’s long-term role in corporate finance.
