Shares in Panther Metals PLC (LSE:PALM) surged 22% on Monday morning after the London-listed explorer unveiled a plan to finance a key mining asset by establishing a Bitcoin treasury, joining a growing number of smaller companies experimenting with cryptocurrency as a financial tool.
The company said it would purchase £4 million of Bitcoin and hold it as a digital reserve, using the asset as collateral to secure a £1.3 million loan for acquiring the Pick Lake deposit in Ontario.
The balance of the Bitcoin reserve will be funded through the exercise of existing warrants and a planned capital raise.
A Bitcoin treasury, now gaining traction among some publicly listed groups, refers to the use of Bitcoin as a core part of a company’s balance sheet, either as a hedge against inflation or a source of secured lending.
While large firms such as MicroStrategy Incorporated (NASDAQ:MSTR) and Block have added Bitcoin to their treasuries, smaller companies like Panther are now exploring how digital assets can be used as working capital.
Here in the UK, The Smarter Web Company (AQSE:SWC) and Vinanz Ltd (LSE:BTC, OTCQB:VINZF) are at the vanguard of this new approach to finance, although there are at least 10 other small-caps that have unveiled similar plans in recent weeks.
Panther said the move allows it to preserve exposure to Bitcoin while still accessing liquidity to fund its operations.
The company plans to maintain the full £4 million Bitcoin holding and may scale up the strategy in future deals, though it has ruled out further borrowing against the reserve for now.
Panther’s approach blends traditional commodities, such as zinc, copper, and gold, with digital capital.
The shares rose 14.1p to 78.6p.