Nasdaq-Listed Critical Metals Embraces Bitcoin with $500M Allocation  

• Critical Metals plans to hold Bitcoin as a key treasury asset, supported by a $500M financing agreement with JBA Asset Management. 
• The initial $100M funding for Bitcoin acquisition includes full warrant coverage, with an optional $400M offering 50% warrant coverage. 
• Notes issued in the financing are secured by cash and BTC, convertible into company shares priced at $6 per share. 

Nasdaq-listed Critical Metals Corp has joined the growing list of companies adopting Bitcoin as a strategic treasury asset. The company recently announced a $500 million Bitcoin treasury strategy, approved by its Board of Directors, to enhance its balance sheet and hedge against inflation. This move positions Critical Metals as the first Nasdaq-listed mining company to incorporate Bitcoin into its treasury. 

Financing Backed by JBA Asset Management

The strategy is made possible through a financing agreement with JBA Asset Management, granting Critical Metals access to $500 million for Bitcoin purchases. The initial tranche of $100 million is readily available for immediate acquisitions, subject to specific conditions. 

This initial funding comes with 100% warrant coverage, allowing investors to purchase additional company shares equal to their investment value at a fixed price. The remaining $400 million, which can be accessed later, offers 50% warrant coverage, enabling investors to buy shares equivalent to half the value of their investment. 

Convertible Notes and Share Warrants 

The notes issued under this financing are secured by the cash raised and the Bitcoin acquired. They are also convertible into the company’s common stock for $6 per share, with associated warrants priced at $7 per share. These provisions ensure robust financial backing while aligning with shareholder interests. 

Tony Sage, Executive Chairman and CEO of Critical Metals emphasized that the Bitcoin strategy aligns with broader initiatives in Western economies. These include proposals for national Bitcoin reserves as countries recognize the asset’s potential as a hedge against inflation and economic uncertainty. Sage underscored the company’s goal of strengthening its financial position through this innovative approach. 

Critical Metals now stands alongside MicroStrategy, the largest publicly traded Bitcoin holder, in leveraging the cryptocurrency for corporate strategy. Recently, MicroStrategy disclosed the purchase of 11,000 Bitcoin for $1.1 billion, increasing its holdings to 461,000 Bitcoin acquired at an overall cost of $29.3 billion.