Mining company Green Minerals has entered a structured financing agreement with LDA Capital worth 250 million Norwegian kroner. The funds will be used to boost its Bitcoin treasury.
Through a press release, the deep sea mining firm has been granted a put option from LDA, which would allow the firm to issue new shares on a flexible basis based on the market conditions. Using an “at-the-market” or ATM structure, the agreement is worth a total commitment of NOK 250 million or around $25 million throughout a year-long period.
Based on the agreement, the ATM structure allows Green Minerals to draw capital if needed and optimize shareholder value also reducing the risk of unnecessary stock dilution.
On the other hand, LDA capital is given a call option regarding the share issuance. This means that LDA can subscribe for up to 1% of the total company share capital value at a price of NOK 6.95 per share. The subscription can be cashed in at anytime throughout the 12-month period.
If the firm does manage to raise $25 million from its financial agreement with LDA, then it stands a chance to buy approximately 232.34 BTC (BTC) according to current market prices.
At press time, the company has accumulated around four Bitcoins, but it plans to purchase more as it continues to roll out funding initiatives for its BTC Treasury strategy. Meanwhile, BTC has been seeing modest gains as it climbs back to the $107,000 threshold. So far, it managed to reach a peak at $107,724.
Executive Chairman of Green Minerals, Ståle Rodahl, said the financial agreement with LDA Capital equips the firm with a “strategic mechanism to fund growth” that aligns with its goal to boost BTC holdings on the company’s dime.
“In a dynamic market environment, flexibility and staying power is key,” said Rodahl in his statement.
Earlier in June, the company established a target to raise $1.2 billion to purchase BTC and gradually grow its crypto holdings. The company claimed that this goal is in line with its commitment to leverage digital assets for its future financial growth.
