Key Takeaway:
- SWC secured $30M Bitcoin-backed credit facility from Coinbase Credit.
- Treasury Bitcoin collateral unlocks fiat liquidity without selling holdings.
- Flexible, non-term facility charges interest only on amounts drawn.
The Smarter Web Company PLC (SWC), a United Kingdom–listed Bitcoin treasury firm, has secured a $30 million Bitcoin-backed credit facility from Coinbase Credit, as reported by Research Tree. The arrangement leverages SWC’s balance-sheet Bitcoin to unlock fiat liquidity without selling holdings. That structure is central to the company’s treasury-led growth narrative.
According to TipRanks, SWC characterized the facility as flexible and non-term, with interest charged only on drawn amounts. Management framed it as a way to deploy capital into Bitcoin more quickly during volatile windows. For shareholders, the mechanism may improve execution speed while avoiding immediate equity dilution.
In practice, drawdowns are issued against Bitcoin posted as collateral, and unused capacity accrues no interest. TipRanks notes the company described no fixed maturity, with interest payable only on utilized balances. That design can reduce carry when the line is idle and scale financing precisely to market conditions.
Risk management centers on the loan-to-value (LTV) ratio that governs collateral sufficiency. MEXC News points out that crypto-collateralized facilities commonly operate in the 50–70% LTV range, with margin calls if collateral value drops. In stress, borrowers typically must add Bitcoin or repay portions to restore LTV.
Strategy matters because leverage against volatile collateral can amplify both gains and drawdowns. “We intend to keep buying Bitcoin regardless of short-term price swings,” said Andrew Webley, CEO of The Smarter Web Company.
Exact pricing, LTV thresholds, and margin-call triggers for this line were not disclosed. That means outcomes will depend on lender terms and SWC’s liquidity buffers as Bitcoin moves. If prices fall sharply, higher LTVs could force collateral top-ups, partial repayments, or position reductions.
At the time of this writing, Bitcoin trades around $63,743, based on data from TradingView. Using a facility during such conditions can help bridge timing gaps between capital raises and execution. Still, facility usage remains sensitive to volatility and collateral coverage.
Disclaimer:
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