Nuvve Holdings Corp., a publicly listed green energy company focused on electric vehicle (EV) charging, announced that it will invest up to 30% of its excess cash in bitcoin.
The company’s Board of Directors has approved the move, which marks Nuvve’s entry into the growing trend of public companies adding bitcoin to their balance sheets.
In a January 28 press release, Nuvve explained its Bitcoin strategy, saying it will diversify its treasury and prepare to accept bitcoin as a form of payment. The company says it believes bitcoin is a valuable asset and will improve payment options for customers and suppliers.
Gregory Poilasne, Nuvve’s CEO and founder, said, “BTC acceptance will promote more payment options for customers and suppliers with potentially less transactional friction inherent to digital currencies.”
Nuvve follows the broader trend of companies adding bitcoin to their financial plans. MicroStrategy, a business intelligence company, has been the biggest public corporate bitcoin adopter, holding 471,107 BTC worth $48 billion.
Tesla and Marathon Digital have also added bitcoin to their balance sheets.
Nuvve will allocate 30% of its excess cash to bitcoin. But according to its latest financials, the company has about $325,425 in cash. At $103,000 per BTC, Nuvve’s initial investment would be less than 1 BTC.
The company said its bitcoin purchases will be based on market conditions and business needs. Instead of a one-time buy, Nuvve may buy bitcoin over time.
After the announcement, the company’s stock (NASDAQ: NVVE) rose 1.42% in after hours to $2.85. It even hit an intraday high of $4.39 before settling at $2.81.
While it’s not a big move, it shows investors are paying attention to the company’s Bitcoin plan. Other companies have seen big stock price moves after announcing their own bitcoin plans as investors speculate on the value of having bitcoin in a corporate treasury.
In addition to holding bitcoin, Nuvve will accept it as a form of payment for its services. That fits with the company’s focus on technology in the energy space.
By accepting bitcoin, Nuvve will attract new customers and partners who use digital currencies. It will also simplify international transactions and reduce payment processing fees.
Nuvve is not the only public company to recently announce bitcoin strategies. Fathom Holdings, Oxbridge Re Holdings and Metaplanet Inc. have all added bitcoin to their treasuries in the last few months.
Fathom Holdings will allocate 50% of its excess cash to bitcoin with an initial investment of up to $500,000. Metaplanet Inc. is aiming to buy 10,000 BTC by the end of the year.
Bitcoin has tripled in value over the last year to over $100,000. But it’s still a volatile asset with unpredictable price swings.
Nuvve is limiting its bitcoin investment to 30% of excess cash, which by corporate standards, is still a big allocation. By keeping most of its cash reserves for operational expenses the company is hedging its bets while still exploring the benefits of the scarce digital asset.
