Nasdaq-listed Solidion pledges to allocate 60% of cash surplus to Bitcoin purchases

US-based battery technology company Solidion has pledged to allocate 60% of its excess cash reserves to Bitcoin as part of its treasury strategy.

Solidion Technology, a US-based battery materials provider, has committed to allocating more than half of its excess cash reserves to Bitcoin (BTC) purchases as part of its new corporate treasury strategy.

As part of its new strategy, Solidion said in a press release on Nov. 14 that it will direct 60% of excess cash from operations to Bitcoin purchases and convert interest earnings from money market accounts into cryptocurrency. The company also plans to allocate some of its future capital raises to Bitcoin purchases, saying the strategy solidifies its “long-term belief in Bitcoin’s role as a store of value and a strategic asset.”

“The allocation reflects a strong commitment to enhancing shareholder value by leveraging Bitcoin’s potential to hedge against inflation and be a valuable component of a diversified treasury.”

Solidification

Solidion Technology chief financial officer Vlad Prantsevich emphasized the company’s long-term belief in Bitcoin’s potential, saying the Dallas-based company believes strongly in Bitcoin’s “transformative potential for the financial system and we view our allocation as both a safe store of value and compelling.” investment.”

“[…] “We expect the next evolution of Bitcoin will be its widespread adoption as a reserve asset by both sovereign nations and corporations, creating significant value and long-term upside potential for Bitcoin and greater global acceptance.”

Vlad Prantsevich

Founded in 2021, Solidion serves the automotive and energy storage industries by specializing in high-capacity silicon anode materials and other advanced battery technologies. The company has a portfolio of more than 550 patents. However, following the announcement, Solidion’s shares fell nearly 8% to $0.35, according to Nasdaq data.