MicroStrategy’s Bitcoin playbook gains a new player as Critical Metals announces a $500M BTC treasury allocation. On Jan. 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 ) treasury strategy. The company plans to hold Bitcoin as a primary asset in its treasury , treating it as a key asset in its treasury management strategy. Critical Metals Corp just became the first Nasdaq-listed critical minerals company to make Bitcoin its primary treasury reserve asset. They already have access to $100mm to buy bitcoin and could acquire up to $400mm more via a convertible debt raise. (s/o @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. access to up to $500 million to acquire Bitcoin. The first $100 million tranche is available for BTC purchases, subject to certain undisclosed conditions. The first $100 million comes with 100% warrant coverage. Simply put, this means that investors who put in money will have the right to buy extra shares of the company in the future, equal to the full amount they invested, at a fixed price. For the remaining $400 million, which is optional and could be accessed later, the coverage is 50%. This means that for every dollar invested, the investor can buy extra shares worth half the value of their investment, at a fixed price. The notes issued in the financing will be secured by the cash raised, and any BTC purchased under the program are convertible into the company’s common stock at a price of $6.00 per share, with warrants associated with the conversion at the cost of $7.00 per share. You might also like: Swiss chancellery registers proposal to add Bitcoin to national reserves Critical Metals’ Bitcoin treasury strategy strongly comports with Donald Trump’s renewed tenure as America’s president and his pro-crypto government policy. Tony Sage, the Executive Chairman and CEO of Critical Metals has also expressed his intent to buy BTC through the company’. He says that by adopting this Bitcoin strategy, Critical Metals seeks to bolster its balance sheet and use BTC as a hedge against possible inflation. He also noted that the strategy is in line with initiatives in Western governments, including proposals for many countries looking to create a National Bitcoin Reserve. Critical Metals has now joined the ranks of prominent companies like MicroStrategy , the world’s largest publicly traded Bitcoin holder. On Jan. 21, MicroStrategy disclosed that it had added another 11,000 Bitcoin to its holdings, purchasing the digital asset for $1.1 billion. With this addition, the company now holds a total of 461,000 Bitcoin, having spent approximately $29.3 billion to acquire them over time. Read more: Trump’s ‘golden age’ begins without Bitcoin, but experts say big moves are coming
