Critical Metals Corp announces groundbreaking Bitcoin treasury strategy with $500M allocation potential, starting with $100M convertible note financing for initial purchases.
Critical Metals Corp, a prominent mining development company, has become the first Nasdaq-listed critical minerals firm to adopt Bitcoin (BTC) as its primary treasury reserve asset.
According to an announcement on January 21, the company’s board has approved a comprehensive Bitcoin treasury strategy, enabling the acquisition of up to $500 million in Bitcoin. This initiative is supported by convertible note financing led by JBA Asset Management, with an initial $100 million tranche designated for Bitcoin purchases.
However, the acquisition is subject to certain criteria being meet, such as market conditions.
An Innovative Approach
Critical Metals said the secured notes are convertible into company stock at a fixed price of $6 per share, providing investors with a structured entry into equity. According to the announcement, the warrants are convertible at $7.
The company plans to acquire Bitcoin in a controlled and strategic manner, ensuring that purchases align with market conditions and the company’s financial health. Rather than making large, immediate acquisitions, the Critical Metals will assess Bitcoin’s price trends and its own cash flow to determine the best times to buy.
Additionally, the company has the flexibility to adjust its strategy based on changing market conditions, financial priorities, or new business opportunities. This approach allows Critical Metals Corp to manage risks effectively while optimizing its Bitcoin holdings for long-term value.
Commenting on the latest development, the company’s CEO and executive chairman, Tony Sage, said the move would help safeguard the firm against inflation and other economic challenges.
“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. As the first Nasdaq-listed critical minerals companies to adopt a bitcoin treasury strategy, we believe this approach provides both inflation protection and appreciation potential without dilution risk,” he said.
Strategic Shift for Long-Term Shareholder Value
According to the announcement, the adoption of bitcoin as a primary reserve aligns with broader governmental initiatives, including President Trump’s recent advocacy for a national Bitcoin stockpile. By integrating Bitcoin into its treasury, Critical Metals Corp. aims to protect its balance sheet from currency debasement risks and position itself as a reliable partner in secure supply chains.
The company disclosed that Cohen & Company Capital Markets and Jett Capital Advisors, LLC served as financial advisors for the Bitcoin initiative, while Sichenzia Ross Ference Carmel LLP acted as legal counsel.
The trend of adopting Bitcoin as a treasury reserve asset is gaining momentum among various companies. In December 2024, nine major firms from diverse sectors, including finance, healthcare, and artificial intelligence, embraced Bitcoin as a strategic reserve asset.
Notably, Genius Group Limited adopted a “Bitcoin-first” strategy, designating BTC as its primary treasury reserve asset.
Additionally, MicroStrategy has been a pioneer in this space, holding approximately 461,000 bitcoins as of January 21, 2025.
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