Green Minerals wants to buy $1.2 billion worth of bitcoin despite stock falling 92%

Oslo-based Green Minerals, a company specializing in mining resources from the seabed, this week announced its intention to acquire bitcoin for $1.2 billion. At the time of the announcement, its market capitalization was less than $6 million, and after the news, the company’s shares jumped nearly fourfold.

However, two days after the peak, the quotations collapsed by 58%. Now the share price is only $0.37, and their total decline since going public in March 2021 exceeds 92%. Despite the short-term excitement, Green Minerals remains in the status of a risky “penny stock”.

The company says it intends to create a “transparent and secure structure” for managing bitcoin reserves. In doing so, it will continue to develop its core business of deep-sea mining. Green Minerals acquired the first 4 BTC on the day the plans were announced, but the road to the announced 11,184 BTC remains an extremely long one.

In the presentation, management attempted to link blockchain to the mining industry, stating plans to use the technology to track the origin of minerals. However, the company did not provide specific examples of interested customers.

Green Minerals’ announcement comes amid a series of similar moves by microcapitalized companies trying to replicate the success of MicroStrategy. The latter has almost completely transformed into a crypto holding company. In contrast, Green Minerals is trying to combine resource extraction and cryptoinvestments in one business model.

Previously, Trident Digital Tech and Classover Holdings also announced their intention to acquire crypto assets worth hundreds of millions of dollars with capitalization tens of times lower than these amounts. Both securities remain volatile and unprofitable for investors.

Green Minerals has not yet specified exactly how it intends to finance such a large-scale purchase of digital assets.