 announces Bitcoin treasury strategy, complementing gold reserves. Share price jumps 23% as investors embrace digital asset pivot.){kind=link}
Earlier today, on July 24th, London-listed gold miner Nativo Resources Plc (LON:NTVO) has made headlines after announcing that it will follow a new path in its financial strategy by adopting a Digital Asset Treasury Policy.
Under the policy, the company can invest a portion of its free cash flow and future fundraising proceeds in Bitcoin positions.
The company, which is currently preparing to re-open operations at its Tesoro Gold Concession in Peru, stated that the step is aimed at positioning Bitcoin as a long-term treasury reserve asset.
The announcement was well-received by investors, and the company’s stock price increased 23.56% to 0.34 GBX.
Bitcoin and Gold: A Dual Hedge Against Inflation
Nativo’s board of directors emphasized that its inclusion of Bitcoin in its treasury is just one part of a comprehensive plan to provide shareholders with a hedge against inflation.
The statement highlighted that it’s the fixed supply and decentralization of Bitcoin that make it a strategic complement to gold’s traditional role as an inflation hedge.
In keeping with Executive Chair Christian Yates, “Nativo is, above all, a mining company”. However, with today’s active financial climate, gold and Bitcoin investment allows us to future-proof the treasury.
The two-asset approach reflects a growing trend among traditional businesses to seek a means of combining traditional reserves and digital assets amid macroeconomic uncertainty.
Institutional Partnerships to Protect Digital Holdings
Nativo has partnered with Copper.co, a world-class digital asset custody firm famous for its institutional-grade infrastructure, in order to support its foray into digital assets.
Additionally, the company revealed that it would receive additional security services from Nemean Services to assist in addressing challenges with regard to the security of cryptocurrencies.
Nativo did not shy away from revealing risks involved, including regulatory risks, cyber attacks, and volatility both in the digital asset market and its share price.
Despite risks, however, the firm is convinced that its strategic action enhances its balance sheet without taking its attention away from its core mining business.
Also Read: SharpLink Gaming Increases Ethereum Holdings with Additional $2 Million Stake, Share Price Up 28%
Core Business to Stay Gold Mining in Peru
Though the Bitcoin treasury policy has attracted considerable publicity, Nativo emphasized that its principal mission remains intact: sustainable development of gold mining in Peru.
The company reconfirmed its emphasis on primary gold extraction, processing, and tailings recovery at several project properties it has optioned or acquired.
As part of its strategy to step up operations in the next 12 months, Nativo aims to increase output and efficiency while drawing from its treasury policy to augment capital strength.
Notably, the company clarified that it will finance all Bitcoin purchases with its own house capital rather than third-party or investor capital underscoring a prudent and autonomous approach.
Nativo Jumps in Line with International Trend of Public Firms with Bitcoin Focus
Nativo is in step with a broader trend among international markets since listed companies more and more invest treasury capital in Bitcoin.
On July 14th, UK-listed Tao Alpha saw its share price increase by 33% after it made a strategic Bitcoin purchase of 28.56 BTC.
Simultaneously, Japanese firm Remixpoint raised $215 million to build up its Bitcoin reserves, propelling its share price by almost 5% at the time of purchase even after significantly diluting its shares.
Such moves portend the institutional change in Bitcoin’s perception from that of a speculative vehicle to that of a legitimate treasury reserve.
Nativo’s entry into the business can position it as a visionary first among natural resource companies seeking to bridge traditional commodities with digital finance.