cyrpto 500m, Bitcoin, club, Critical, joins, Metals, plan, treasury Mark January 22, 2025 0 Comments

Critical Metals joins Bitcoin club with $500M treasury plan

MicroStrategy’s Bitcoin playbook gains a new player as Critical Metals announces $500 million BTC treasury allocation.

On January 21, Critical Metals Corp, the first Nasdaq-listed mining company to announce such a move, revealed that its board of directors had approved a Bitcoin (BTC) cash flow strategy. The company plans to hold Bitcoin as its primary asset in its cashconsidering it as a key asset in its cash management strategy.

Critical Metals Corp just became the first Nasdaq-listed critical minerals company to make Bitcoin its primary cash reserve asset.

They already have access to $100 million to buy bitcoin and could acquire up to $400 million more through a convertible debt raise.

(SO @Mason_Jappa) pic.twitter.com/rVp2gp78sa

-Sam Callahan (@samcallah) January 21, 2025

The strategy is supported by a financing agreement with JBA Asset Management, which allows Critical Metals Corp. to access up to $500 million to acquire Bitcoin. The first tranche of $100 million is available for BTC purchases, subject to certain undisclosed conditions.

The first $100 million comes with 100% warranty coverage. In simple terms, this means that investors who invest money will have the right to purchase additional shares of the company in the future, equal to the total amount they invested, at a fixed price.

For the remaining $400 million, which is optional and accessible later, coverage is 50%. This means that for every dollar invested, the investor can purchase additional shares worth half the value of their investment, at a fixed price.

The notes issued as part of the financing will be collateralized by the cash raised, and any BTC purchased under the program will be convertible into common stock of the company at a price of $6.00 per share, with warrants associated with the conversion at a price of $7.00 per share.

Critical Metals’ Bitcoin treasury strategy is perfectly in line with Donald Trump’s renewed term as US president and his pro-crypto government policy.

Tony Sage, Executive Chairman and CEO of Critical Metals, also expressed his intention to purchase BTC through the company. He says that by adopting this Bitcoin strategy, Critical Metals is looking to strengthen its balance sheet and use BTC as a hedge against possible inflation.

He also noted that the strategy is in line with initiatives by Western governments, including proposals from many countries seeking to create a national Bitcoin reserve.

Critical Metals has now joined the ranks of leading companies like MicroStrategythe largest publicly traded Bitcoin holder in the world.

January 21, MicroStrategy disclosed that he added another 11,000 Bitcoins to his holdings, purchasing the digital asset for $1.1 billion. With this addition, the company now holds a total of 461,000 Bitcoins, having spent approximately $29.3 billion acquiring them over time.