ECR Minerals PLC (AIM:ECR), the London-listed gold explorer with projects in Australia, has adopted a Bitcoin and digital asset treasury management policy as it prepares for a potential transition into revenue-generating production, particularly at its Blue Mountain gold project in Queensland.
Under the new approach, ECR may invest up to 50% of its free cash flow from gold production and surplus cash reserves in Bitcoin or selected high-quality digital assets.
It describes the move as a way to hedge against gold price fluctuations that will allow it to manage cross-border currency risk and provide a modern store of value for its treasury.
“Attitudes towards money and financial systems are changing and the increased awareness of digital assets in recent years has made them a growing, and in some cases preferred, payment mechanism,” said chairman Nick Tulloch.
The company stressed that the new policy does not represent a shift away from its core gold exploration and development activities.
Instead, it is intended as a long-term financial management tool, with no speculative trading or leveraged products permitted.
Custody of any digital assets will be with a regulated custodian, with strict security measures such as multi-signature wallets and offline storage.