Key facts
- Smarter Web Company sold 177.89 BTC to repay convertible notes.
- The sale generated approximately $11.7 million.
- Bitcoin's price dropped below $65,400 following the announcement.
- Smarter Web Company's stock pared gains after the sale.
- The company retains 2,700 BTC.
The Smarter Web Company, a UK-based digital asset treasury (DAT) firm, has sold a significant portion of its Bitcoin holdings to repay convertible notes known as the Smarter Convert instrument. The company disclosed that it sold 177.89 BTC at an average price of $65,762, totaling approximately $11.7 million, to settle these notes with entities related to the TOBAM Group nearly two weeks before their maturity.
This transaction has led to concerns within the cryptocurrency community and contributed to a drop in Bitcoin's price, which fell by 0.65% in an hour to below $65,400. Smarter Web Company's stock also saw its gains reduced, moving from 2.88% to 0.77% intraday.
Smarter Web Company CEO Andrew Webley stated that the instrument served its purpose as an alternative to traditional leverage, but they chose to settle early and simplify the capital structure as the conversion price was not met. He noted that the company has always treated the instrument more like debt than equity, and the repayment has been the primary driver of their current -4.35% quarterly gross BTC yield. Following the sale, Smarter Web Company now holds 2,700 BTC, ranking it 28th among Bitcoin DAT companies.
The repayment also resulted in the cancellation of nearly 7.7186 million ordinary shares that were slated for issuance. The company's stock is currently trading at $29.78, down 28% year-to-date, with trading volume lower amid a pause in the company's Bitcoin accumulations.