Green Minerals to Invest $1.2 Billion in Bitcoin Treasury Amid 35% Stock Drop

Green Minerals, a Norwegian mineral mining firm, has announced its intention to establish a Bitcoin treasury. The company, along with its partners, plans to invest up to $1.2 billion to create this BTC stockpile. This move is part of a broader strategy to integrate more blockchain technologies into the company's operations. The firm aims to acquire its first Bitcoin in the coming days, with the goal of mitigating risks associated with traditional fiat currencies and embracing financial innovation.

Ståle Rodahl, the Executive Chairman of Green Minerals, highlighted the decentralized and non-inflationary properties of Bitcoin, making it an attractive alternative to traditional fiat. He emphasized that this strategy not only hedges against fiat risks but also aligns with the company's commitment to long-term value creation. The company's core operational strategy remains focused on its deep-sea mining projects, with the Bitcoin treasury program serving as a supportive measure.

Green Minerals believes that blockchain technology plays a crucial role in ensuring supply chain transparency, mineral origin certification, and operational efficiency in the mining industry. This investment in Bitcoin is seen as a robust hedge against currency debasement, particularly relevant given the company's significant future capital expenditures on production equipment.

The announcement comes at a time when an increasing number of publicly traded companies are shifting their focus towards Bitcoin accumulation. However, Green Minerals' stock price experienced a significant drop of nearly 35% following the announcement. This decline may be attributed to broader market reactions and the recent government actions in Norway, which has ordered a stoppage of deep-sea mining and is considering a temporary ban on new power-intensive crypto mining operations.

The Norwegian government's decision to investigate a temporary ban on new power-intensive crypto mining operations reflects concerns about the energy consumption associated with digital asset mining. The government believes that the power used for mining could be better utilized for community data centers and other essential services. This regulatory environment adds complexity to Green Minerals' plans, as the company navigates both the opportunities and challenges presented by its Bitcoin treasury strategy.