Critical Metals to Establish Bitcoin Reserve

Critical Metals Corp. (Nasdaq: CRML), a prominent producer of rare earth metals, has announced a bold new strategy to incorporate Bitcoin (BTC) into its treasury management. The company’s board of directors has formally approved BTC as a core asset within its financial policy, making Critical Metals the first rare earth mining company listed on Nasdaq to adopt such an approach.

Critical Metals Corp. adopts Bitcoin as part of its treasury strategy.

Source: criticalmetalscorp.com

Strategic Allocation of Bitcoin

Critical Metals Corp. has secured up to $500 million in funding through a convertible bond mechanism managed by JBA Asset Management.

The first tranche, worth $100 million (subject to specific conditions), will be allocated for Bitcoin purchases. The remaining $400 million will be distributed at the discretion of investors.

The initial tranche is fully backed by warrants, while subsequent tranches will have 50% warrant coverage.

Warrants are financial instruments that grant holders the right, but not the obligation, to purchase company shares at a predetermined price within a specified timeframe. Companies often use warrants to attract investors by offering the potential to benefit from future increases in share value.

Tony Sage, Executive Chairman and CEO of Critical Metals, highlighted the significance of establishing a Bitcoin reserve.

“Incorporating a bitcoin allocation to our treasury management strategy is an innovative approach that we believe will strengthen our balance sheet and create long-term shareholder value,” Sage said. 

He also tied this strategy to Western government initiatives supporting Bitcoin, referencing recent remarks by President Trump advocating for the creation of a national Bitcoin reserve.

Funding Details

The convertible notes will be secured by both the raised capital and the Bitcoin acquired. These notes can be converted into company stock at $6.00 per share, while the warrants are convertible at $7.00. This balanced structure provides Critical Metals Corp. with the flexibility to respond to market conditions while maintaining adequate liquidity levels.

A Strategic Shift in Treasury Management

By incorporating Bitcoin into its treasury strategy, Critical Metals Corp. is establishing itself as a pioneer in bridging digital assets with traditional industries. CEO Tony Sage highlighted Bitcoin’s dual advantages: its ability to hedge against inflation and its potential for significant value appreciation, which together enhance the company’s financial stability. This decision also bolsters the company’s position as a trusted supplier of critical minerals for Western governments.

Key Partnerships

The deal was executed with support from financial advisors Cohen & Company Capital Markets and Jett Capital Advisors, LLC. Legal counsel was provided by Sichenzia Ross Ference Carmel LLP.

About

Critical Metals Corp. is a leading mining development company focused on critical metals and minerals, with flagship projects including Wolfsberg Lithium in Austria and Tanbreez in Greenland. 

These assets are strategically vital for ensuring the supply of critical minerals essential to the defense industry, clean energy transition, and advanced technology sectors.

With prime locations near well-established infrastructure, the company is positioned to play a pivotal role in the sustainable supply chain for Western economies.

By incorporating Bitcoin into its treasury strategy, Critical Metals Corp. is redefining industry standards with an innovative approach to financial management, enhancing shareholder value and setting a precedent for the sector.