{"id":550036,"date":"2026-07-26T17:30:09","date_gmt":"2026-07-26T16:30:09","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=550036"},"modified":"2026-07-26T12:08:40","modified_gmt":"2026-07-26T11:08:40","slug":"why-two-public-companies-quietly-liquidated-511-bitcoin-in-24-hours-to-escape-31-7-million-in-debt","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/why-two-public-companies-quietly-liquidated-511-bitcoin-in-24-hours-to-escape-31-7-million-in-debt\/","title":{"rendered":"Why two public companies quietly liquidated 511 Bitcoin in 24 hours to escape $31.7 million in debt"},"content":{"rendered":"<p>KULR Technology Group, a US-listed battery technology company, and The Smarter Web Company, a UK-listed web services group with a Bitcoin treasury strategy, have sold approximately 511 BTC and used the proceeds to retire approximately $31.7 million of obligations in disclosures published one day apart.<\/p>\n<p>The total comprises $20 million of KULR principal and Smarter Web\u2019s exact $11,698,540 repayment. Both companies acted voluntarily and retained substantial <a href=\"https:\/\/cryptoslate.com\/coins\/bitcoin\/\">Bitcoin reserves<\/a>; neither disclosure described a lender-forced liquidation. The shared consequence is that financing can turn assets presented as long-term holdings into repayment inventory without ending a treasury strategy.<\/p>\n<p><a href=\"https:\/\/www.sec.gov\/Archives\/edgar\/data\/1662684\/000110465926086506\/tm2621256d1_8k.htm\">KULR\u2019s July 24 filing<\/a> said it sold approximately 333 BTC from July 9 through July 23 at a weighted-average price of approximately $64,538, generating about $21.5 million in gross proceeds. It used the net proceeds to clear all principal under its $20 million Coinbase Credit facility. Accrued interest still had to be calculated at month-end and was expected to be paid in August 2026.<\/p>\n<p>KULR said the sale was a deliberate step to reduce interest expense and remove collateral and liquidation risk. An <a href=\"https:\/\/www.sec.gov\/Archives\/edgar\/data\/1662684\/000110465926061180\/tmb-20260331x10q.htm\">earlier quarterly filing<\/a> showed a March $5 million draw with a 7% loan fee and a May $15 million draw carrying a 7% yearly financing charge paid monthly. KULR expected 565 pledged BTC to be released and reported approximately 760 BTC still in its treasury.<\/p>\n\n<div class=\"cs-article-embed\">\n    <a href=\"https:\/\/cryptoslate.com\/us-bitcoin-treasury-company-just-sold-every-btc-as-debt-and-nasdaq-pressure-closed-in\/\" class=\"cs-article-embed__link\">\n        <div class=\"cs-article-embed__body\">\n            <span class=\"cs-article-embed__related-reading\">Related Reading<\/span>\n            <h3 class=\"cs-article-embed__title\">A US Bitcoin treasury company sold every BTC because debt and Nasdaq pressure just closed in<\/h3>\n        <\/div>\n        <span class=\"cs-article-embed__arrow\" aria-hidden=\"true\">\n            <i class=\"fa-light fa-arrow-up-right\"><\/i>\n        <\/span>\n    <\/a>\n<\/div>\n\n<h2>Smarter Web removed maturity and dilution risk<\/h2>\n<p><a href=\"https:\/\/www.lse.co.uk\/rns\/repayment-of-smarter-convert-instrument-lj1c4p7n8k61d1h.html\">Smarter Web\u2019s July 23 announcement<\/a> described a different trade. At the company\u2019s request and with support from TOBAM-related noteholders, it sold exactly 177.8909127 BTC at an average of $65,762 to repay Smarter Convert approximately two weeks before maturity.<\/p>\n<p>The <a href=\"https:\/\/www.smarterwebcompany.co.uk\/smarterweb-co-uk\/_img\/pdf\/prospectus\/16-01-2026-swc-prospectus.pdf\">zero-coupon instrument<\/a> was due August 5. At maturity, holders could choose the segregated BTC, its fiat-equivalent value, or shares converted at \u00a32.0475. Early repayment removed that approaching settlement obligation and the potential issuance of 7,718,551 shares. Smarter Web retained 2,700 BTC.<\/p>\n<p>A separate Coinbase facility appeared on the company\u2019s April 30<a href=\"https:\/\/www.smarterwebcompany.co.uk\/smarterweb-co-uk\/_img\/pdf\/financial-reports\/SWC%20-%20HY26%20Interim%20report.pdf\">\u00a0balance sheet<\/a>, so repaying the convert alone did not establish that Smarter Web was debt-free.<\/p>\n\n<div class=\"cs-article-embed\">\n    <a href=\"https:\/\/cryptoslate.com\/strategy-sold-32-bitcoin-to-pay-dividends-the-real-risk-is-what-happens-if-it-has-to-sell-more\/\" class=\"cs-article-embed__link\">\n        <div class=\"cs-article-embed__body\">\n            <span class=\"cs-article-embed__related-reading\">Related Reading<\/span>\n            <h3 class=\"cs-article-embed__title\">Strategy sold 32 BTC to pay dividends &#8211; But the real risk is what happens if it has to sell more Bitcoin<\/h3>\n        <\/div>\n        <span class=\"cs-article-embed__arrow\" aria-hidden=\"true\">\n            <i class=\"fa-light fa-arrow-up-right\"><\/i>\n        <\/span>\n    <\/a>\n<\/div>\n\n<p>Another <a href=\"https:\/\/cryptoslate.com\/digital-asset-treasuries\/\">Bitcoin treasury company<\/a> provides a bounded precedent. In June, <a href=\"https:\/\/www.sec.gov\/Archives\/edgar\/data\/1946573\/000149315226028223\/ex99-1.htm\">Nakamoto said<\/a> it sold approximately 600 BTC plus derivatives and applied $45 million to debt while retaining Bitcoin and leaving 165 million USDT outstanding.<\/p>\n<p>The next seller cannot be named from these cases, but the pressure points are visible: BTC pledged to loans, recurring financing charges, nearby maturities, and large conversion-linked share counts. A <a href=\"https:\/\/www.sec.gov\/Archives\/edgar\/data\/1074828\/000107482826000052\/usbc-20260713.htm\">July SEC filing<\/a> for another treasury company also disclosed a 24-hour cure window after a loan\u2019s collateral ratio fell below 130%.<\/p>\n\n<div class=\"cs-article-embed\">\n    <a href=\"https:\/\/cryptoslate.com\/bitcoin-treasury-already-faced-two-collateral-calls-in-2026-and-some-loans-leave-just-12-hours-to-the-liquidation-line\/\" class=\"cs-article-embed__link\">\n        <div class=\"cs-article-embed__body\">\n            <span class=\"cs-article-embed__related-reading\">Related Reading<\/span>\n            <h3 class=\"cs-article-embed__title\">Bitcoin treasuries already faced two collateral calls in 2026 and some loans can liquidate after just 12 hours<\/h3>\n        <\/div>\n        <span class=\"cs-article-embed__arrow\" aria-hidden=\"true\">\n            <i class=\"fa-light fa-arrow-up-right\"><\/i>\n        <\/span>\n    <\/a>\n<\/div>\n\n<p>Those features show where holding every coin competes most directly with debt service, collateral safety, and shareholder dilution. They identify exposed financing structures, not a forecast of another sale.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Voluntary sales removed KULR\u2019s collateral risk and Smarter Web\u2019s near-term maturity and 7.7 million potential shares.<\/p>\n","protected":false},"author":1264,"featured_media":550204,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[79911,80573,77968,79849,6849],"tags":[81073,76769,75195,75695,76896],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Why two public companies quietly liquidated 511 Bitcoin in 24 hours to escape $31.7 million in debt<\/title>\n<meta name=\"description\" content=\"Bitcoin treasury firms KULR and Smarter Web sold 511 BTC to repay $31.7 million, reducing collateral, maturity and dilution risks.\" 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