London-Listed Firm Buys Bitcoin With Coinbase Loan—Why Purchase Amid Market Fear?

▲ Bitcoin (BTC) Collateral, Coinbase, London Stock Exchange / ChatGPT-generated image

Smarter Web, a company listed on the London Stock Exchange, has secured a $30 million Bitcoin (BTC)-backed credit facility from Coinbase, strengthening its financial foundation for aggressive asset accumulation.

According to crypto-focused media outlet Cointelegraph on February 24 (local time), UK-based Bitcoin treasury management firm Smarter Web signed a $30 million Bitcoin-collateralized loan agreement with Coinbase Credit, a subsidiary of Coinbase. The credit line is backed by Bitcoin held in Coinbase custody and is intended to reduce settlement timing risks arising from capital raises through share issuance while enabling immediate Bitcoin purchases.

Rather than using the $30 million as long-term debt, Smarter Web plans to deploy it as bridge financing to close the time gap between fundraising and actual asset acquisition. Amid heightened market volatility, the company aims to utilize the credit line to secure Bitcoin at favorable prices even before proceeds from equity offerings are fully received. This strategy is seen as an agile treasury management approach designed to hedge against the risk of sharp price increases during settlement periods.

Smarter Web currently holds 2,689 BTC purchased at an average price of $112,865, with total assets valued at approximately $170 million. Although the company is recording an unrealized loss of about 44% due to the recent decline in Bitcoin prices, it continues to designate Bitcoin as a core treasury asset and remains committed to increasing its holdings. The establishment of additional financial infrastructure for further purchases despite substantial unrealized losses has drawn market attention.

Capital inflows into digital asset treasury firms have shown signs of slowing in February. According to data from a digital asset analytics firm, treasury inflows peaked at $4 billion in December last year and $3.7 billion in January this year, but as of February 24, inflows stand at $363 million. Even amid this slowdown, Smarter Web’s move to secure a large-scale credit facility suggests that institutional utilization of Bitcoin-based financial services is deepening.

Through this credit extension, Coinbase has further solidified its position as a comprehensive financial platform for institutions, moving beyond its role as a simple exchange. At a time when buying sentiment is resurfacing, with the Bitcoin premium turning positive for the first time in months, the aggressive actions of a publicly listed company demonstrate strong confidence in a future recovery of asset values. As Bitcoin increasingly establishes itself as a key collateral asset supporting corporate financial stability, the integration of digital assets with traditional finance is expected to accelerate further.

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