Publicly traded company Nativo Resources announces initiation of Bitcoin Treasury Reserve
BlockBeats News, July 24th, London-listed company Nativo Resources (LON:NTVO) announced today that it has adopted a digital asset treasury policy, allowing this gold-focused mining company to allocate a portion of its free cash flow and future financing proceeds to hold Bitcoin. The company is preparing to restart its gold mining operations in the Tesoro (LON:0JYA) gold mine concession area in Peru and stated that this policy will enable it to hold Bitcoin as a long-term financial reserve asset while meeting operational working capital needs.
According to a press release, Nativo has partnered with Copper.co to provide institutional-grade custody services for its digital assets and expects to receive additional security services from Nemean Services. The company's board believes that holding both gold and Bitcoin can provide shareholders with a diversified hedge against inflation, noting that Bitcoin's fixed supply and decentralized nature complement gold's traditional store of value characteristics.
Nativo acknowledges that this policy carries several risks, including potential stock price volatility, regulatory uncertainty regarding digital assets, and security issues associated with cryptocurrency custody.
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