London-listed bitcoin treasury firm Smarter Web repaid $11,698,540 in debt on July 23 by selling 177.89 bitcoin at an average price of $65,762 per coin. The repayment retired a convertible instrument held by TOBAM-related entities, originally established in August 2025, and eliminated the potential issuance of 7,718,551 ordinary shares. Digital asset treasury companies have faced mounting pressure throughout 2026 as bitcoin prices remained below many firms' average acquisition costs, prompting some to abandon accumulation-only strategies.
Smarter Web Repays $11.7M Debt Using Bitcoin Sale Proceeds
Smarter Web disclosed on Thursday that it repaid $11,698,540 owed under its Smarter Convert instrument held by entities related to TOBAM. The repayment was funded by selling 177.8909127 bitcoin at an average price of $65,762 per coin, representing all of the bitcoin originally acquired through the subscription proceeds from the August 2025 agreement.
The original agreement required at least 98% of the proceeds to be invested in bitcoin, but Smarter Web deployed 100% into the cryptocurrency. Under the terms of the arrangement, the company repaid the full amount using the bitcoin purchased with those funds.
Repayment Eliminates 7.7 Million Share Dilution
The repayment eliminated the potential issuance of 7,718,551 ordinary shares tied to the convertible instrument. Smarter Web explained that those shares, along with the 177.89 bitcoin sold to fund repayment, have been removed from its fully diluted bitcoin treasury analytics. Following the transaction, the company continues to hold 2,700 bitcoin, leaving it as the world's 28th largest public corporate bitcoin holder according to bitcointreasuries.net.
Chief Executive Andrew Webley said the financing structure helped strengthen the company's balance sheet during the early stages of its bitcoin treasury strategy, but no longer fits its capital allocation priorities. He added that while convertible instruments remain a possible financing tool, the company does not currently consider them the appropriate solution for Smarter Web.
Strategy and Satsuma Shift Away From Accumulation-Only Models
Strategy ended its long-standing policy against selling bitcoin earlier this year. The company first disposed of 32 bitcoin in May as part of a tax-loss harvesting strategy before selling another 3,588 bitcoin across June and July to help fund preferred stock distributions and rebuild cash reserves.
Satsuma Technology abandoned its treasury strategy altogether. Shareholders approved a plan to liquidate the company, sell its remaining 668 bitcoin, settle liabilities, and distribute the remaining proceeds to investors after its stock lost more than 99% from its peak and the business struggled under declining asset values.
Bitcoin Treasury Firms Face Financing Pressure in 2026
The broader treasury company sector has faced mounting pressure throughout 2026 as bitcoin prices remained well below many companies' average acquisition costs. Businesses that relied on issuing stock above net asset value or raising capital through convertible securities have found financing conditions more difficult as equity valuations weakened.
Those challenges have exposed structural differences between owning bitcoin directly and investing through publicly traded treasury companies. When corporate shares trade at steep discounts to the value of their underlying bitcoin holdings, issuing additional equity becomes less attractive while debt obligations and operating expenses continue to weigh on balance sheets.
Unlike Satsuma, Smarter Web is not winding down its treasury strategy. The company characterized the repayment as a change in financing rather than a retreat from bitcoin. It continues accepting bitcoin as payment for its web design and digital marketing services and maintains bitcoin as a central component of its treasury policy. The early retirement of the TOBAM instrument removes a future source of shareholder dilution while simplifying the company's capital structure.
FAQ
Why did Smarter Web sell 177 bitcoin on July 23?
Smarter Web sold 177.89 bitcoin at an average price of $65,762 per coin to repay $11,698,540 owed under its Smarter Convert instrument held by TOBAM-related entities. The repayment retired the convertible debt originally established in August 2025 and eliminated the potential issuance of 7,718,551 ordinary shares.
How much bitcoin does Smarter Web still hold after the sale?
Following the sale of 177.89 bitcoin, Smarter Web continues to hold 2,700 bitcoin, ranking as the world's 28th largest public corporate bitcoin holder according to bitcointreasuries.net.
What challenges have bitcoin treasury firms faced in 2026?
Bitcoin treasury firms have faced mounting pressure throughout 2026 as bitcoin prices remained well below many companies' average acquisition costs. Businesses that relied on issuing stock above net asset value or raising capital through convertible securities have found financing conditions more difficult as equity valuations weakened, with some firms like Strategy selling bitcoin and Satsuma approving liquidation.
