Workflow
Critical Metals Corp. Announces Commencement of Bitcoin Treasury Strategy and Related Financing to Acquire Up to $500 million of BTC
CRMLCritical Metals(CRML) GlobeNewswire·2025-01-21 14:25

Core Viewpoint - Critical Metals Corp has adopted a comprehensive bitcoin treasury strategy, making it the first Nasdaq-listed critical minerals company to do so, aiming to strengthen its balance sheet and create long-term shareholder value [1][4]. Financing and Investment Strategy - The company may access up to 500millionthroughconvertiblenotefinancingledbyJBAAssetManagement,withaninitialtrancheof500 million through convertible note financing led by JBA Asset Management, with an initial tranche of 100 million available for BTC purchases [2]. - The first tranche is issued with 100% warrant coverage, while subsequent tranches totaling up to 400millionwillhave50400 million will have 50% warrant coverage [2][3]. - The convertible notes are secured by cash raised and any BTC purchased, convertible into common stock at a fixed price of 6.00 per share [3]. Management Commentary - The Executive Chairman and CEO emphasized that incorporating bitcoin into the treasury management strategy is innovative and aligns with broader government initiatives for bitcoin adoption, providing inflation protection and appreciation potential [4]. - The strategy is designed to be flexible, allowing the company to modify its approach based on market dynamics and cash flow requirements [4]. Company Overview - Critical Metals Corp focuses on critical metals and minerals essential for electrification and next-generation technologies, with flagship assets including the Wolfsberg Lithium Project and the Tanbreez Greenland Rare Earth Mine [6]. - The Wolfsberg Lithium Project is the first fully permitted mine in Europe, strategically located to support the European market [6]. - The company aims to be a reliable supplier of critical minerals for defense applications and clean energy transitions in the western world [6].