Gold Explorer Embraces Bitcoin Treasury

Gold Explorer Embraces Bitcoin Treasury

An early-stage mining exploration business in Liberia, West Africa, Hamak Gold, is investing in Bitcoin. The business, which has been listed on the London Stock Exchange since 2022, announced on Thursday that it had raised £2.47 million through a share issue, but did not specify when the funds were secured.

The “injection of new capital” puts Hamak Gold “well-positioned to pursue two core objectives in parallel,” according to Nick Thurlow, the company’s newly appointed chairman, in a statement released by the London Stock Exchange.

Dual Strategy: Gold Exploration and Bitcoin Treasury

That means “maximizing our existing gold exploration and development opportunities” or “seizing the transformative opportunity to lead the UK in bitcoin treasury management,” Thurlow told the BBC.

While Hamak Gold is still in the pre-revenue stage and has no operational mining activities, it owns licenses covering more than 1,700 square kilometers of promising territory.

Bitcoin Treasuries as a Modern Corporate Strategy

Bitcoin treasury pivots have become increasingly popular techniques, particularly among organizations seeking to reinvent themselves.

Semler Scientific, a healthcare firm, suffered dwindling sales and legal concerns before implementing a Bitcoin strategy last year. It now plans to acquire 105,000 BTC by 2027.

Others, such as GameStop, tapped into the movement in response to retail headwinds and activist investors, with its board allowing Bitcoin purchases earlier in March. It has now acquired over 4,710 BTC and raised $450 million last month, with the possibility of securing much more.

More recent moves by Opyl, an Australian biotech startup with less than a month’s cash runway, and Vanadi Coffee, a Spanish café brand with only six outlets, appear to follow suit: flip to Bitcoin, rewrite the narrative.

Discipline and Structure: The Key Differentiators

The difference, according to Saul Rejwan, managing partner of Masterkey, an early-stage crypto venture capital firm, is due to structure and discipline.

Citing Tokyo-listed Metaplanet, Rejwan told Decrypt that the business “first refinanced high-coupon hotel debt and bought back older secured bonds” before issuing zero-coupon paper to add 1,005 more Bitcoin.

However, because Metaplanet’s operational engine can already pay its obligations, the Bitcoin position “complements a cleaner balance sheet instead of substituting for one,” Rejwan added, emphasizing how a Bitcoin treasury model may serve as a “litmus test” for firms.

Contrasts with Speculative Players

Rejwan compared this with corporations such as Twenty-One Capital, which he described as “SPAC-born” vehicles. Twenty-One Capital revealed earlier in April that it intends a public debut with 42,000 BTC in its treasury, which Rejwan highlighted is “funded largely by fresh equity and convertible debt” from top investors like SoftBank and Tether.

“Rejwan contrasted the big players with the newcomers, saying, ‘Here, the share count swells before a single satoshi is earned; Bitcoin volatility is expected to do the heavy lifting for the stock price, not to protect retained earnings.'”

“Risk discipline is the line that separates us,” he said. He contended that although a bull market would have a tendency to “flatter” such reserve strategies, history might indicate differently.

Businesses that allegedly ‘rely on one-signer wallets, large holdings, or repeated equity raising’ are exposing shareholders to a four-year boom-and-bust cycle,” according to Rejwan.

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