Bitcoin found an unexpected champion in the London primary market. Bluebird Mining Ventures Ltd (AIM:BMV), a gold developer worth only £2.7m, said it will recycle any future gold bar revenue and use its cryptocurrency as its main style reserve as its main Treasury Reserve, the company’s first initiative as a UK seller.
Bluebird Mining Eye Bitcoin Pivot
In a strategic update released this morning, Bluebird constituted the decision in response to “structural shifts in global markets.” Management believes that gold’s hundreds of years of role as a store of value is increasingly “threatening” from the rise of Bitcoin, which many commentators call “digital gold.” The company now intends to “convert future revenue from its mining projects to bitcoin, which actually converts gold to ‘Digital Gold’”, adding that it will “adopt a policy to use bitcoin as a Treasury asset on its balance sheet.”
Aidan Bishop, the executive director and interim CEO who led the reconsideration, made it clear that motivation. “I embarked on a journey to understand and understand Bitcoin some time ago,” he said. “I firmly believe we have witnessed a tectonic transformation of global markets, and Bitcoin will reshape the landscape of financial markets at all levels.” He described the Hybrid’s “Gold plus Digital Gold” model as “turning the pages, looking for the future and looking for opportunities to attract new shareholders.”
The pivot is the edge of the Bluebird towards the breakthrough farm appearance of the Philippine flagship Batangas Gold Project. Negotiations with local partners reached an “advanced phase” that, if ended within a few weeks, would extend the company’s free carry status until first production, while retaining interest on mining net profits without additional capital expenditures.
In South Korea, regulatory setbacks have prevented the progress of Kochang and Gubong’s deposits, and local lawyers at Bluebird are preparing for an administrative lawsuit filed by June 18 to protect the value of the asset. The board said it would “continue to actively identify opportunities for these projects to advance without further capital requirements for the company.”
Since the company plans to run with “minimum corporate overhead,” it is believed that the Bitcoin-backed Treasury can expand returns once the Philippines’ cash flow begins. Management notes that holding bitcoin elsewhere and “has been enjoying a huge investor interest, as well as a large premium for net assets value, which challenges traditional financial indicators.”
To drive the new strategy, Bluebird has begun looking for CEOs with expertise in digital assets. Discussions with several candidates are already underway.
Whether the market rewards experiment remains to be seen, but on the day the plan was announced, Bluebird shares traded at 63%, suggesting that investors are at least ready to speculate that gold mined from Asian mountainous areas could be exchanged for balanced spot scarcity. If both Philippine trading and Bitcoin treasury are achieved, the Bluebird will test a simple paper: Digital gold may prove richer veins in a world where Fiat devalues and tightens the edge of gold.
At press time, BTC traded at $105,495.
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