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U.S.-based battery tech company Solidion has pledged to allocate 60% of its excess cash reserves to Bitcoin as part of its treasury strategy.
Solidion Technology, a U.S.-based battery materials provider, has committed to allocating more than half of its excess cash reserves to Bitcoin (BTC) purchases as part of its new corporate treasury strategy.
As part of its new strategy, Solidion said in a Nov. 14 press release that it will direct 60% of any excess cash from operations into Bitcoin acquisitions and convert interest earnings from money market accounts into the cryptocurrency. The company also plans to dedicate a portion of future capital raises to Bitcoin purchases, saying the strategy solidifies its “long-term belief in Bitcoin’s role as a store of value and a strategic asset.”
“The allocation reflects a strong commitment to enhancing shareholder value by leveraging Bitcoin’s potential as a hedge against inflation and as a valuable component of a diversified treasury.”
Solidion
Solidion Technology chief financial officer Vlad Prantsevich emphasized the company’s long-term belief in Bitcoin’s potential, saying the Dallas-headquartered company strongly believes in Bitcoin’s “transformative potential for the financial system, and we see our allocation as both a secure store of value and compelling investment.”
“[…] we anticipate Bitcoin’s next evolution will be widespread adoption as a reserve asset by both sovereign nations and corporations, creating substantial value and long-term upside potential for Bitcoin as it gains further global acceptance.”
Vlad Prantsevich
Founded in 2021, Solidion specializes in high-capacity silicon anode materials and other advanced battery technologies, serving the automotive and energy storage sectors. The company boasts a portfolio of over 550 patents. However, following the announcement, Solidion’s shares fell nearly 8% to $0.35, per Nasdaq data.
This article first appeared at crypto.news
