Critical Metals Corp Becomes First Nasdaq-Listed Firm to Adopt Bitcoin as Treasury Asset
Critical Metals Corp has become the first Nasdaq-listed critical minerals company to adopt Bitcoin as its primary treasury reserve asset. The company announced on January 21 that its board approved a strategy to acquire up to $500 million in Bitcoin, supported by convertible note financing led by JBA Asset Management, with an initial tranche of $100 million.
Key details include:
- Acquisition criteria depend on market conditions.
- Secured notes are convertible into stock at a fixed price of $6 per share, with warrants convertible at $7.
- The company will assess Bitcoin's price trends and its cash flow before purchasing.
- Strategy flexibility allows adjustments based on market changes and business opportunities.
- CEO Tony Sage stated this move aims to protect against inflation and enhance long-term shareholder value.
This decision aligns with governmental initiatives advocating for Bitcoin, positioning Critical Metals Corp. to mitigate risks from currency debasement and strengthen supply chains. The trend of adopting Bitcoin as a reserve is increasing among companies, with nine major firms, including Genius Group Limited and MicroStrategy, integrating Bitcoin into their treasury strategies.