Smarter Web Company Sells Bitcoin to Clear $11.7 Million Debt Facility
Bitcoin Magazine
Smarter Web Company Sells Bitcoin to Clear $11.7 Million Debt Facility
The Smarter Web Company has sold a portion of its Bitcoin treasury to repay an $11.7 million convertible debt facility held by TOBAM, a move the company frames as a choice for balance-sheet flexibility over equity dilution.
The company sold 177.8909127 BTC at an average price of $65,762 to retire the instrument, known as the “Smarter Convert,” ahead of schedule. The transaction totaled $11,698,540 and was settled roughly two weeks early. After the sale, Smarter Web still holds 2,700 BTC in treasury.
Smarter Web’s financing decisions
On its face, a Bitcoin treasury company selling part of its holdings can read as a signal of weakening conviction. But the transaction is a debt-management decision.
Smarter Web was not exiting its Bitcoin position. It used BTC to extinguish a debt obligation and avoid issuing 7,718,551 ordinary shares, an outcome that would have diluted existing shareholders had the convertible converted into equity instead.
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