‘Not an appropriate capital solution at this time’: Smarter Web sells 178 Bitcoin to repay $11.7 million convertible bond

On July 23, 2026, The Smarter Web Company (SWC), listed on the London Stock Exchange (LSE), announced a tactical shift in its Bitcoin treasury strategy. The company stated that it sold 177.89 Bitcoin to fully repay $11.7 million in convertible bonds held by the TOBAM Group. This decision is interpreted as an effort to protect the equity value of existing shareholders by choosing to liquidate digital assets rather than converting debt into equity.

We determined that this instrument is not an appropriate capital solution for us in the current market environment.

According to the specific disclosure, Smarter Web disposed of a total of 177.8909127 BTC at a price of $65,762 per Bitcoin. The funds secured were used to fully repay the $11,698,540 'Smarter Convert' instrument. Notably, this repayment was carried out approximately two weeks ahead of the scheduled maturity date, with the full support of the TOBAM Group.

Strategic Rationale: Preventing Equity Dilution and Enhancing Shareholder Value

The key reason Smarter Web took the drastic measure of selling Bitcoin was to prevent the dilution of shareholder equity. If the bonds had been converted into shares, approximately 7.7 million new shares would have been issued, lowering the ownership percentage of existing shareholders. By utilizing Bitcoin, a liquid asset, to resolve the debt directly, the company effectively canceled the potential issuance of new shares.

• Bitcoin sold: 177.8909127 BTC
• Average selling price: $65,762
• Total repayment amount: $11,698,540
• Number of potential shares cancelled: 7.7 million shares

Despite this sale, Smarter Web's Bitcoin-centric treasury strategy remains robust. According to updates on July 18 and 11, 2026, the company is reported to hold approximately 2,700 BTC even after this sale. This aligns with the company's long-term ambition to establish itself as a leading Bitcoin treasury company in the UK.

The company's overall financial health is also on an improving trend. Recently, Smarter Web completed a $282 million capital reduction, converting accounting capital into distributable reserves for shareholders. This structural change is seen as laying the foundation for future capital expansion strategies, such as the issuance of Bitcoin-backed preferred shares.

While the market is sensitive to corporate Bitcoin sales, Smarter Web's case differs from a simple asset disposal. CEO Andrew Webley mentioned in a weekly update the complexities of building a Bitcoin treasury company within regulatory and legal frameworks. This can be interpreted in a similar context to Tesla's 2021 sale of 10% of its Bitcoin holdings to demonstrate liquidity.

Investors are now focusing on Smarter Web's next steps. Key points of interest include the details of the 'Bitcoin-collateralized preferred shares' the company is pursuing and whether there will be further rounds of Bitcoin purchases. Additionally, how the company will optimize its capital structure following this debt repayment is also a matter of market interest.

Future Considerations for Investors

• Plans for additional Bitcoin purchases and asset acquisition
• Progress on the issuance of the UK's first Bitcoin-based preferred shares
• Compliance with regulatory frameworks and strengthening of financial reporting transparency
• Debt management and further capital structure optimization measures

Smarter Web's decision demonstrates that it is utilizing Bitcoin not merely as an investment asset, but as a strategic tool to secure corporate financial flexibility. The move to decisively liquidate Bitcoin when traditional financial instruments like convertible bonds do not align with its strategy provides significant implications for other Bitcoin-holding companies.

In conclusion, Smarter Web Company has successfully reduced its debt burden while protecting shareholder value through this sale of 178 BTC. As we enter the second half of 2026, attention is focused on how the approximately 2,700 Bitcoin held by the company will impact its future corporate value.