Critical Metal Corp plans to adopt bitcoin financial strategy, with available funds of up to $500 million

On January 22nd, Critical Metal Corps, a key metals miner in the United States, said it plans to begin allocating its excess reserves to BTC, a decision that has been approved by its board of directors. According to the company's announcement, it may have access to a pool of $500 million, which will be part of a convertible note financing led by JBA Asset Management, subject to conditions contained in the transaction documents.
The company said that out of the $500 million pool of funds, it will first allocate $100 million to buy bitcoin. The first tranche of funds will have 100% warrants coverage. It also said that the remaining $400 million can be used according to the buyer's wishes, with 50% warrants coverage. The convertible notes are secured by the cash raised and the underlying BTC acquired, depending on the financing conditions.
While the company has not announced plans for a strategic bitcoin purchase, it said the move would depend on its cash flow needs and could eventually modify some of the conditions of the strategy as it sees fit.