The Smarter Web Company (LSE:SWC), which holds Bitcoin as a treasury reserve asset, has repaid the $11.7m owed under its Smarter Convert instrument held by entities linked to TOBAM Group.
The repayment came at the company's request, with TOBAM's support, roughly two weeks before the instrument's scheduled maturity.
The Smarter Web Company funded the settlement by selling 177.8909127 Bitcoin at an average price of $65,762, the full amount originally acquired with the subscription proceeds.
The original agreement, disclosed on 6 August 2025, required at least 98% of proceeds to be deployed into Bitcoin, but the Company had put in the entire sum, and so was obliged to repay the entire holding tied to the instrument.
The repayment eliminates a potential issue of 7.72m shares linked to Smarter Convert, with both those shares and the disposed Bitcoin removed from the Company's fully diluted treasury analytics.
The Company now holds 2,700 Bitcoin following the disposal.
Chief executive Andrew Webley said the instrument had offered "an innovative alternative to traditional leverage" when it was struck last August, but that the company's capital allocation approach has since evolved.
"We do not currently believe they represent the right capital solution for The Smarter Web Company", he said of convertible instruments, thanking TOBAM for its partnership in developing the structure.
News Intelligence what this means for the company
Smarter Web Company has repaid its $11.7m Smarter Convert instrument two weeks early by liquidating the 177.8909127 Bitcoin the facility had acquired, at an average price of $65,762 per coin. The early repayment eliminates 7.72m dilutive shares and signals a strategic shift: management now views convertible instruments as misaligned with the company's capital allocation approach, having evolved its strategy since the instrument's August 2025 inception.
The repayment removes a near-term maturity event and eliminates dilution, but comes at the cost of reducing the Bitcoin treasury from ~2,878 BTC to 2,700 BTC—a 6% reduction in the asset base that underpins the company's treasury strategy.
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