Key Points
- Critical Metals Corp becomes the first Nasdaq-listed firm to adopt Bitcoin as its primary treasury reserve asset.
- The company plans to acquire up to $500 million in Bitcoin, supported by convertible note financing.
Critical Metals Corp, a leading mining development company, is the first Nasdaq-listed critical minerals company to adopt Bitcoin (BTC) as its main treasury reserve asset.
On January 21, the company’s board approved a comprehensive Bitcoin treasury strategy that allows the acquisition of up to $500 million in Bitcoin. This move is backed by convertible note financing led by JBA Asset Management, with an initial tranche of $100 million set aside for Bitcoin purchases. However, the acquisition depends on certain criteria, including market conditions.
Adopting an Innovative Strategy
Critical Metals has announced that the secured notes can be converted into company stock at a fixed price of $6 per share. This arrangement offers investors a structured entry into equity with the warrants convertible at $7.
The company intends to acquire Bitcoin in a controlled and strategic manner, aligning purchases with market conditions and the company’s financial health. Instead of making large, immediate acquisitions, Critical Metals will evaluate Bitcoin’s price trends and its own cash flow to identify the best times to buy.
The firm has the flexibility to adjust its strategy based on changing market conditions, financial priorities, or new business opportunities. This strategy allows Critical Metals Corp to manage risks effectively while optimizing its Bitcoin holdings for long-term value.
Tony Sage, the company’s CEO and executive chairman, believes this move will help protect the firm against inflation and other economic challenges. He stated that incorporating a Bitcoin allocation to their treasury management strategy will strengthen their balance sheet and create long-term shareholder value.
Transitioning for Long-Term Shareholder Value
The company’s decision to adopt 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.
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.
Genius Group Limited adopted a “Bitcoin-first” strategy, designating BTC as its primary treasury reserve asset.
Furthermore, MicroStrategy has been a pioneer in this space, holding approximately 461,000 bitcoins as of January 21, 2025.
