Mineral exploration company Panther Metals Plc has announced a Bitcoin treasury strategy combining traditional mining assets with Bitcoin holdings, leading to a surge in its stock price on Monday.
In a statement, the UK-listed mining exploration company announced plans to buy 4 million British pounds ($5.4 million) in Bitcoin for a treasury account and strategy on Monday.
The firm will use 1.3 million British pounds ($1.75 million) worth of Bitcoin (BTC) from its treasury as collateral to complete its acquisition of the Pick Lake mining deposit in Ontario, Canada.
“This allows the Company to complete the Pick Lake acquisition whilst retaining its total exposure to Bitcoin,” the firm said.
The approach would see Bitcoin as “productive capital” rather than passively held, as seen in other Bitcoin treasury companies.
The firm’s physical commodity inventory, which includes “critical minerals,” gold and other precious metals, will see continued growth, supported by the Bitcoin treasury, which will also be expanded.
Panther Metals CEO Darren Hazelwood said the hybrid approach will allow the firm to leverage Bitcoin to fund high-quality mineral projects “whilst being less dilutive to our shareholder base, due to the more attractive terms being offered by the digital space,” before extolling the virtues of the digital asset.
“In today’s inflationary environment and volatile capital markets, Bitcoin provides a unique hedge against fiat currency risk.”
Pick Lake is part of the larger Winston Project, hosting around 85% of the total mineral resources on the project.
The Winston deposit is described as an “advanced-stage polymetallic zinc, copper, and precious metal property” with a high-grade mining redevelopment and resource building opportunity.
Zinc is considered a critical mineral essential for galvanizing steel and battery technologies.
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“By blending the stability of physical resources with the flexibility of digital capital, Panther is building a business that can thrive through market cycles and remain ahead of the curve,” said Hazelwood.
Investors agreed with the sentiment and loaded up on Panther stock (PALM), which surged 21% on the London Stock Exchange on Monday.
Panther shares have surged a whopping 125% over the past month and 55% over the past week, according to Google Finance.
The number of corporations adopting Bitcoin treasuries is surging. Earlier this week, real estate mogul Grant Cardone announced his firm’s first Bitcoin purchase with 1,000 BTC for its corporate treasury.
Meanwhile, Bitcoin stalwarts Michael Saylor’s Strategy and Japanese Metaplanet continue to load up, increasing their holdings to 592,345 BTC and 11,111 BTC, respectively.
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