Critical Metals Corp. Announces Commencement of Bitcoin Treasury Strategy and Related Financing to Acquire Up to $500 million of BTC
Critical Metals Corp (Nasdaq: CRML) has announced a groundbreaking bitcoin treasury strategy, becoming the first Nasdaq-listed critical minerals company to adopt BTC as a primary treasury reserve asset. The company has secured access to up to $500 million through convertible note financing led by JBA Asset Management to purchase Bitcoin.
The financing structure includes a $100 million first tranche with 100% warrant coverage, followed by potential subsequent tranches totaling up to $400 million at the Buyer's discretion with 50% warrant coverage. The convertible notes are secured by raised cash and potential BTC purchases, with notes convertible at $6.00 per share and warrants at $7.00.
The strategy aims to strengthen the company's balance sheet and create long-term shareholder value while providing inflation protection without dilution risk. The implementation will follow a disciplined approach based on market dynamics and cash flow requirements.
Critical Metals Corp (Nasdaq: CRML) ha annunciato una strategia innovativa per il tesoro bitcoin, diventando la prima azienda di minerali critici quotata al Nasdaq ad adottare il BTC come principale asset di riserva. L'azienda ha ottenuto l'accesso fino a 500 milioni di dollari tramite finanziamenti in note convertibili guidati da JBA Asset Management per acquistare Bitcoin.
La struttura di finanziamento include una prima tranche da 100 milioni di dollari con copertura totale dei warrant, seguita da potenziali tranche successive che possono arrivare fino a 400 milioni di dollari a discrezione dell'acquirente con una copertura del 50% di warrant. Le note convertibili sono garantite da fondi raccolti e potenziali acquisti di BTC, con note convertibili a 6,00 dollari per azione e warrant a 7,00 dollari.
La strategia mira a rafforzare il bilancio dell'azienda e creare valore a lungo termine per gli azionisti, offrendo al contempo protezione dall'inflazione senza rischio di diluzione. L'attuazione seguirà un approccio disciplinato basato sulle dinamiche di mercato e sui requisiti di flusso di cassa.
Critical Metals Corp (Nasdaq: CRML) ha anunciado una estrategia innovadora para el tesoro bitcoin, convirtiéndose en la primera empresa de minerales críticos cotizada en Nasdaq en adoptar el BTC como principal activo de reserva. La empresa ha asegurado acceso a hasta 500 millones de dólares a través de financiamiento en notas convertibles liderado por JBA Asset Management para comprar Bitcoin.
La estructura de financiamiento incluye una primera tranche de 100 millones de dólares con cobertura total de warrants, seguida de posibles tranches subsiguientes que totalizan hasta 400 millones de dólares a discreción del comprador con una cobertura del 50% de warrants. Las notas convertibles están garantizadas por efectivo recaudado y posibles compras de BTC, con notas convertibles a 6,00 dólares por acción y warrants a 7,00 dólares.
La estrategia tiene como objetivo fortalecer el balance de la empresa y crear valor para los accionistas a largo plazo, al mismo tiempo que proporciona protección contra la inflación sin riesgo de dilución. La implementación seguirá un enfoque disciplinado basado en la dinámica del mercado y los requisitos de flujo de caja.
크리티컬 메탈스 코퍼레이션 (Nasdaq: CRML)은 혁신적인 비트코인 재무 전략을 발표하며, BTC를 주요 재무 준비 자산으로 채택한 최초의 나스닥 상장 주요 광물 회사가 되었습니다. 이 회사는 비트코인을 구매하기 위해 JBA 자산 관리가 주도하는 전환사채 금융을 통해 최대 5억 달러에 대한 접근을 확보했습니다.
금융 구조에는 100% 보장된 1차 분할 납입 1억 달러가 포함되어 있으며, 이어서 50% 보장된 차후 분할 납입이 최대 4억 달러까지 있을 수 있습니다. 전환사채는 확보된 현금과 잠재적 BTC 구매로 보장되며, 주식당 전환 가격은 6.00 달러, 보증서는 7.00 달러입니다.
이 전략은 회사의 재무 상태를 강화하고 주주 가치를 장기적으로 창출하며, 희석 위험 없이 인플레이션 보호를 제공하는 것을 목표로 합니다. 실행은 시장 역학과 현금 흐름 요구 사항을 기반으로 한 엄격한 접근 방식을 따릅니다.
Critical Metals Corp (Nasdaq: CRML) a annoncé une stratégie révolutionnaire de trésorerie en bitcoins, devenant la première entreprise de minéraux critiques cotée au Nasdaq à adopter le BTC comme actif de réserve principal. L'entreprise a sécurisé un accès à hauteur de 500 millions de dollars grâce à un financement par obligations convertibles dirigé par JBA Asset Management pour acheter des bitcoins.
La structure de financement comprend une première tranche de 100 millions de dollars avec une couverture totale des bons, suivie de tranches potentielles ultérieures totalisant jusqu'à 400 millions de dollars à la discrétion de l'acheteur avec 50% de couverture des bons. Les obligations convertibles sont garanties par des liquidités levées et des achats potentiels de BTC, avec des obligations convertibles à 6,00 dollars par action et des bons à 7,00 dollars.
La stratégie vise à renforcer le bilan de l'entreprise et à créer de la valeur à long terme pour les actionnaires tout en offrant une protection contre l'inflation sans risque de dilution. L'implémentation suivra une approche disciplinée basée sur les dynamiques du marché et les besoins de flux de trésorerie.
Critical Metals Corp (Nasdaq: CRML) hat eine bahnbrechende Bitcoin-Schatzstrategie angekündigt und ist damit das erste an der Nasdaq gelistete Unternehmen für kritische Mineralien, das BTC als primäres Reservevermögen übernimmt. Das Unternehmen hat Zugang zu bis zu 500 Millionen Dollar durch eine von JBA Asset Management geführte Finanzierung in Form von wandelbaren Anleihen gesichert, um Bitcoin zu kaufen.
Die Finanzierungsstruktur umfasst eine erste Tranche von 100 Millionen Dollar mit 100% Warrant-Abdeckung, gefolgt von potenziellen nachfolgenden Tranchen in Höhe von bis zu 400 Millionen Dollar nach Ermessen des Käufers mit 50% Warrant-Abdeckung. Die wandelbaren Anleihen sind durch aufgebrachte Mittel und potenzielle BTC-Käufe gesichert, wobei die Anleihen zu 6,00 Dollar pro Aktie und Warrants zu 7,00 Dollar umwandelbar sind.
Die Strategie zielt darauf ab, die Bilanz des Unternehmens zu stärken und langfristigen Aktionärswert zu schaffen, während sie gleichzeitig Inflationsschutz ohne Verwässerungsrisiko bietet. Die Umsetzung erfolgt mit einem disziplinierten Ansatz, der auf Marktdynamik und Cashflow-Anforderungen basiert.
- Access to $500 million in financing for Bitcoin purchases
- First-mover advantage as first Nasdaq-listed critical minerals company adopting BTC strategy
- Potential inflation hedge for treasury assets
- Secured financing structure with assets as collateral
- Potential dilution risk from convertible notes and warrants
- Exposure to Bitcoin's price volatility
- Significant debt addition through convertible notes
- Deviation from core mining business focus
Insights
This strategic move represents a significant financial pivot for Critical Metals Corp, securing
The financing structure is cleverly designed to minimize immediate dilution while providing significant upside potential for both the company and investors. The security backing of cash and acquired BTC creates a unique risk profile where downside protection is linked to bitcoin's performance rather than traditional mining assets. With a current market cap of
This marks a watershed moment as the first Nasdaq-listed critical minerals company adopts bitcoin as a treasury reserve asset. The timing aligns with increasing institutional adoption and political support for bitcoin, particularly noteworthy given the mention of President Trump's advocacy for a national bitcoin stockpile. The strategy serves dual purposes:
- Hedge against inflation and currency debasement
- Potential appreciation of treasury assets without traditional equity dilution
For retail investors, this represents an interesting hybrid exposure to both critical minerals and bitcoin markets. The secured nature of the convertible notes against cash and BTC creates a unique risk profile different from both pure-play mining companies and bitcoin-holding companies.
This innovative treasury strategy could redefine how mining companies approach balance sheet management. Traditional mining companies typically maintain reserves in fiat currency or precious metals. By integrating bitcoin, Critical Metals Corp is positioning itself at the intersection of traditional mining and digital assets, potentially creating a new paradigm for the industry. The company's focus on critical minerals for western nations, combined with this bitcoin strategy, aligns well with growing concerns about supply chain security and monetary sovereignty.
The move could influence other mining companies to consider similar strategies, particularly those involved in critical minerals supply chains for western markets. This could lead to a broader transformation in how mining companies manage treasury assets and hedge against currency risks.
NEW YORK, Jan. 21, 2025 (GLOBE NEWSWIRE) -- Critical Metals Corp. (Nasdaq: CRML) (“Critical Metals Corp”), a leading mining development company focused on critical metals and minerals and producing strategic products essential to electrification and next generation technologies for Europe and its western world partners through its Tanbreez Greenland Rare Earth Mine and Wolfsberg Lithium Project, today announced its Board of Directors has approved a comprehensive bitcoin (“BTC”) treasury strategy, adopting BTC as a primary asset in its treasury program.
As part of the convertible note financing, led by JBA Asset Management, Critical Metals Corp may have access up to
The convertible notes are primarily secured by the cash raised and any potential BTC purchased in connection with the financing. The notes are convertible into common stock of the company at a fixed conversion price of
Tony Sage, Executive Chairman and CEO of Critical Metals Corp., commented, “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. As the first Nasdaq-listed critical minerals companies to adopt a bitcoin treasury strategy, we believe this approach provides both inflation protection and appreciation potential without dilution risk. This strategy aligns with broader western government initiatives around bitcoin adoption, including President Trump's recent advocacy for a national bitcoin stockpile. As a key supplier of critical minerals to western nations, our bitcoin treasury strategy further strengthens our position as a reliable partner in secure supply chains, while protecting our balance sheet from currency debasement risks.”
Critical Metals Corp's bitcoin acquisition strategy will be implemented through a disciplined approach guided by market dynamics and the Company's cash flow requirements. The Company maintains flexibility to modify its approach based on evolving circumstances and strategic considerations.
Advisors
Cohen & Company Capital Markets, a division of J.V.B. Financial Group, LLC, and Jett Capital Advisors, LLC acted as financial advisor to Critical Metals in the Transaction. Sichenzia Ross Ference Carmel LLP acted as counsel to Critical Metals in the transaction.
About Critical Metals Corp.
Critical Metals Corp (Nasdaq: CRML) is a leading mining development company focused on critical metals and minerals, and producing strategic products essential to electrification and next generation technologies for Europe and its western world partners. Its initial flagship asset is the Wolfsberg Lithium Project located in Carinthia, 270 km south of Vienna, Austria. The Wolfsberg Lithium Project is the first fully permitted mine in Europe and is strategically located with access to established road and rail infrastructure and is expected to be the next major producer of key lithium products to support the European market. Wolfsberg is well positioned with offtake and downstream partners to become a unique and valuable building block in an expanding geostrategic critical metals portfolio. The Tanbreez Project represents one of the world's largest rare earth deposits. With this strategic asset portfolio, Critical Metals Corp is positioned to become a reliable and sustainable supplier of critical minerals essential for defense applications, clean energy transition, and next-generation technologies in the western world.
For more information, please visit https://criticalmetalscorp.com/.
Cautionary Note Regarding Forward Looking Statements
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Forward-looking statements include, without limitation, statements regarding the financial position, financial performance, business strategy, expectations of our business and the plans and objectives of management for future operations. These statements constitute projections, forecasts and forward-looking statements, and are not guarantees of performance. Such statements can be identified by the fact that they do not relate strictly to historical or current facts. When used in this news release, forward-looking statements may be identified by the use of words such as “estimate,” “plan,” “project,” “forecast,” “intend,” “will,” “expect,” “anticipate,” “believe,” “seek,” “target,” “designed to” or other similar expressions that predict or indicate future events or trends or that are not statements of historical facts. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements.
Forward-looking statements are subject to known and unknown risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward-looking statements. Actual results could differ materially from those anticipated in forward-looking statements for many reasons, including the factors discussed under the “Risk Factors” section in the Company’s Shell Company Report on Form 20-F filed with the U.S. Securities and Exchange Commission. These forward-looking statements are based on information available as of the date of this news release, and expectations, forecasts and assumptions as of that date, involve a number of judgments, risks and uncertainties. Accordingly, forward-looking statements should not be relied upon as representing our views as of any subsequent date, and we do not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.
Critical Metals Corp.
Investor Relations: ir@criticalmetalscorp.com
Media: pr@criticalmetalscorp.com
FAQ
How much financing has CRML secured for its Bitcoin treasury strategy?
What is the conversion price for CRML's new convertible notes and warrants?
What is the warrant coverage structure in CRML's Bitcoin financing deal?
How will CRML implement its Bitcoin treasury strategy?
What security backs CRML's convertible notes for the Bitcoin strategy?
