Critical Metals Adopts Bitcoin Treasury Strategy with $500M Allocation

Critical Metals Corp, a Nasdaq-listed mining company, has announced a Bitcoin treasury strategy with a planned allocation of $500 million. This move makes Critical Metals the first Nasdaq-listed critical minerals company to hold Bitcoin as a primary treasury reserve asset.

Financing Agreement and Treasury Management

The company’s Board of Directors has approved the strategy, which is supported by a financing agreement with JBA Asset Management. This agreement provides Critical Metals Corp with access to up to $500 million to acquire Bitcoin. The first $100 million tranche is available for BTC purchases, subject to certain conditions.

The financing agreement includes a warrant coverage structure. The first $100 million comes with 100% warrant coverage, allowing investors to buy extra shares of the company in the future at a fixed price. The remaining $400 million, which is optional, has 50% warrant coverage.

Secured Notes and Conversion Terms

The notes issued in the financing will be secured by the cash raised, and any Bitcoin purchased under the program can be converted into the company’s common stock at a price of $6.00 per share. Warrants associated with the conversion will be issued at a cost of $7.00 per share.

Alignment with Pro-Crypto Government Policies

Critical Metals’ Bitcoin treasury strategy aligns with the initiatives of Western governments, including proposals to create a National Bitcoin Reserve. The company’s Executive Chairman and CEO, Tony Sage, expressed his intent to buy BTC through the company, citing the need to bolster its balance sheet and hedge against possible inflation.

Joining the Ranks of Prominent Companies

Critical Metals has joined the ranks of prominent companies like MicroStrategy, the world’s largest publicly traded Bitcoin holder. MicroStrategy recently added 11,000 Bitcoin to its holdings, bringing its total to 461,000 Bitcoin, valued at approximately $29.3 billion.

By adopting this Bitcoin strategy, Critical Metals seeks to bolster its balance sheet and use BTC as a hedge against possible inflation.

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