Green Minerals AS Plans $1.2 Billion Bitcoin Treasury

Norwegian deep-sea mining firm Green Minerals AS has announced a significant strategic move to establish a Bitcoin treasury, with plans to raise $1.2 billion to purchase and hold the cryptocurrency. This initiative is part of a broader blockchain strategy aimed at diversifying the company’s investments away from traditional fiat currencies and supporting future project plans. The company’s executive chair, Ståle Rodahl, highlighted that Bitcoin is seen as an attractive alternative to traditional fiat, offering a hedge against currency debasement and mitigating fiat risks.

Green Minerals intends to commence its Bitcoin purchases in the near future, with the first acquisition expected within the next few days. The company plans to finance up to $1.2 billion through various programs designed to increase its Bitcoin treasury. At the current trading price of around $106,500 per Bitcoin, Green Minerals could acquire approximately 11,255 Bitcoins with the $1.2 billion investment. Additionally, the firm will introduce a new key performance indicator to track the Bitcoin value attributable to each share, providing transparency and accountability to investors.

Beyond the financial aspect, Green Minerals is also exploring the adoption of blockchain technology to enhance its competitive edge and comply with future regulatory requirements. The company recognizes the potential of blockchain in ensuring supply chain transparency, mineral origin certification, and operational efficiency within the mining industry. This forward-thinking approach positions Green Minerals at the forefront of technological innovation in the sector.

Green Minerals' decision to invest in Bitcoin reflects a growing trend among corporations to adopt cryptocurrencies as a hedge against economic uncertainties. By shifting its treasury reserves from traditional fiat currencies to Bitcoin, the company aims to mitigate risks associated with inflation and currency devaluation. This move is part of a broader strategy to diversify financial reserves and support the company's expansion plans, aligning with other forward-thinking companies that have made similar investments.

The company's stock price experienced volatility following the announcement, with shares closing at a 300% gain on Monday, rising to 68 euro cents. However, the share price dropped on Tuesday to close down over 34% to 44 euro cents. Despite this short-term fluctuation, the overall trend in the last five days shows an increase in the stock price, indicating investor confidence in the company's long-term strategy.

Green Minerals' plan to raise $1.2 billion for Bitcoin holdings is a significant step, demonstrating the company's strong commitment to the cryptocurrency market. The decision to allocate such a substantial amount of capital to Bitcoin underscores the firm's belief in the cryptocurrency's potential as a store of value and a hedge against inflation. This move is likely to have implications for the broader cryptocurrency market, as it adds to the growing list of corporations viewing Bitcoin as a viable alternative to traditional financial instruments.