Norway deep-sea mining firm plans $1.2B Bitcoin buy

Norwegian deep-sea mining firm Green Minerals AS says it plans to create a Bitcoin treasury and is aiming to raise $1.2 billion to buy and hold Bitcoin long-term.

Green Minerals said on Monday that the plan is part of a wider blockchain strategy that aims to diversify the company’s investments from fiat currencies and support its future project plans.

Green Minerals executive chair Ståle Rodahl said in a statement that Bitcoin (BTC) is an “attractive alternative to traditional fiat,” and the hope is that adding it to the firm’s balance sheets will help by “mitigating fiat risks.”

“With significant future capital expenditures planned for the production equipment, the program offers a robust hedge against currency debasement.”

First Bitcoin buy coming in next few days

Green Minerals said that with its partners, it plans to finance up to $1.2 billion with programs designed to increase its Bitcoin treasury, and it aims to buy its first Bitcoin within the next few days.

Green Minerals could buy roughly 11,255 Bitcoin for $1.2 billion, with it currently trading around $106,500.

The company also said it will launch a key performance indicator, with the new metric tracking the Bitcoin value attributable to each share.

Blockchain adoption on the cards

The mining firm has also flagged plans to adopt blockchain technology “to stay in the forefront of competition and any future regulatory requirements.”

“Green Minerals also sees that blockchain technology has an important role to play in mining to ensure supply chain transparency, mineral origin certification and operational efficiency,” the company added.

Related: Metaplanet shares jump after $5.4B plan to buy Bitcoin

Stock down following crypto announcement

Shares in Green Minerals closed at a 300% gain on Monday with its announcement, rising to 68 euro cents (79 cents); however, its share price dropped on Tuesday to close down over 34% to 44 euro cents (51 cents), Google Finance data shows.

Green Minerals’ stock price was down at the close of trading on Tuesday, but up overall in the last five days. Source: Google Finance Some companies have seen their stock prices surge after announcing a Bitcoin buying plan

In May, shares in the Indonesian fintech firm DigiAsia Corp nearly doubled, rising 91%, after the company said it was raising $100 million to seed its first of many buys.

Not all have experienced the spike, though. Norwegian crypto brokerage firm K33 also announced in May its intent to buy and hold the cryptocurrency, but its share price traded flat, down 1.96%.

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