Critical Metals Corp has unveiled a $500 million Bitcoin investment strategy, following the cryptocurrency treasury management approach pioneered by MicroStrategy.
According to an official press release from the solid minerals mining company, it has secured through a financing agreement with JBA Asset Management following its Board of Directors’s approval of the plan to incorporate Bitcoin as a primary treasury asset.
The company stated that its acquisition strategy is subject to changes and modifications as it would be executed through a “disciplined approach influenced by market dynamics” and cash flow needs.
Notably, its deal with the asset manager is structured such that it gets an initial $100 million tranche for immediate Bitcoin purchases, with access to an additional $400 million in optional funding. The initial $100 million comes with 100% warrant coverage, allowing investors to purchase company shares equal to their full investment at a predetermined price. The optional $400 million includes 50% warrant coverage.
Also, under the agreement, Bitcoin purchased through the program can be converted into company common stock at $6.00 per share, with accompanying warrants at $7.00 per share.
“Incorporating a bitcoin allocation to our treasury management strategy is an innovative approach that we believe will strengthen our balance sheet and create long term shareholder value,”
said Tony Sage, Executive Chairman and CEO of Critical Metals. Sage, who also announced his intention to personally purchase Bitcoin through the company’s shares, noted that the move aligns with various Western government initiatives exploring National Bitcoin Reserve concepts.
This move positions Critical Metals among a growing number of public companies adopting Bitcoin as a treasury asset, reflecting a broader trend of corporate cryptocurrency adoption. The strategy mirrors that of MicroStrategy, which recently reinforced its position as the world’s largest corporate Bitcoin holder with a new purchase of 1,070 BTC for $101 million at an average price of $94,004. The acquisition brings its total holdings to 447,470 BTC, acquired for $27.97 billion. The company reported a 48% Bitcoin yield for Q4 2024.
If you want to read more news articles like this one, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, Instagram, and the CoinMarketCap Community.
“Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”
