British company Bluebird Mining Ventures has announced that it intends to convert future revenue from its projects into Bitcoin and use it as a reserve asset. The company calls this a strategy of “converting gold into digital gold.”
The company's shares soared by almost 60% on the back of this news.
“We believe that combining revenue streams from gold mining projects and processing these revenues as part of a proactive approach to managing ‘bitcoins in treasury’ while maintaining minimal corporate overheads will set an example for the UK mining industry,” Bluebird said in a statement.
Bluebird is developing projects in South Korea and the Philippines with combined reserves of approximately 1.8 million ounces of gold. The company's shares are traded on the London Stock Exchange under the ticker BMV.
The company has announced plans to hold bitcoin on its balance sheet as part of its corporate strategy. According to Bluebird, this approach will preserve the value of its revenue, reduce costs, and attract investors, as has been the case with other public companies that have added bitcoin to their reserves.
Bluebird's strategy update is aimed at monetizing its flagship project in the Philippines, CryptoTimes reports. The company recently extended the license to implement its Philippine project. It is reported that negotiations with a local partner have progressed significantly since then, and Bluebird expects the agreement to be finalized in the coming weeks.
The company is also actively seeking a new CEO with experience in digital assets to lead this initiative. Several candidates are currently being considered.
“By adopting a ‘gold plus digital gold’ strategy, the company will be able to turn the page, look to the future, and attract a new type of shareholder,” said Bluebird's interim CEO Aidan Bishop.
Following the announcement of the new strategy, Bluebird's shares rose 60% on June 5, according to TradingView. However, the price of the securities is still 92% below the peak reached in the fall of 2020.
A pioneer in Bitcoin accumulation, Michael Saylor's Strategy announced the creation of a crypto reserve in mid-2020. Over the past five years, MSTR shares have risen 2,850%. Strategy owns 2.7% of all Bitcoin, worth about $64 billion. By 2027, the company plans to raise another $86 billion to buy BTC.