Should Metal Mining Companies Adopt a Bitcoin Treasury Strategy? Bluebird Thinks So!
A small-cap gold miner's bold pivot is raising eyebrows
As inflation and geopolitical tensions fuel debates on what assets are likely to claim the top reserve asset status, an increasing number of companies are starting to ask a provocative question: should they add bitcoin to their balance sheets? A small-cap gold mining company has answered “yes” - atleast for their specific case - and is acting in line with that opinion. Bluebird Mining Ventures Ltd. (LSE: BMV.L), a UK-listed gold miner, announced earlier this month a plan to convert future gold revenues into bitcoin, making it the first UK miner to adopt a “digital gold” treasury strategy. With bitcoin trading at $104,500 and gold touching the $3,500 per ounce level, Bluebird’s move has ignited a debate about whether miners should diversify into cryptocurrencies.
Bluebird, managing 1.8 million ounces of gold resources across projects in the Philippines and South Korea, aims to hedge against fiat devaluation and attract crypto-savvy investors. Its stock surged by up to 63% after their hybrid bitcoin/gold treasury strategy was announced, reflecting market enthusiasm for its lean, seven-person team’s vision to blend gold’s stability with bitcoin’s growth potential. Management calls it a “tectonic shift,” citing bitcoin’s capped 21 million coin supply as a modern store of value. The company is also eyeing bitcoin mining, with a deal to acquire 756 ASIC miners for £200,000 in equity, signaling deeper crypto integration.
Proponents see massive potential. They argue that miners, flush with commodity revenues, are well-positioned to adopt bitcoin. MicroStrategy’s success, holding 555,450 BTC ($52.3 billion) as of May 2025, shows how bitcoin can boost shareholder value, with its stock quadrupling since 2020. Bitcoin’s low correlation with gold (unlike equities) offers diversification, and its recent U.S. endorsement as “digital gold” by the Treasury bolsters corporate confidence. For miners facing resource depletion and ESG pressures, bitcoin could offset commodity price volatility.
Yet, skeptics highlight risks. Bitcoin’s volatility—capable of swinging double digits in hours—could destabilize balance sheets, especially for small-cap miners like Bluebird, valued at around £4 million. Critics on X are brutal, calling the pivot a “nothing burger” without imminent revenue, noting Bluebird’s reliance on a yet-to-produce Philippine project and legal hurdles in South Korea. Regulatory uncertainty, particularly in the UK, and high custody costs further complicate adoption.
By the way, a larger mid-cap NASDAQ-listed company, Critical Metals Corp, announced a similar bitcoin treasury strategy move at the start of the year, on a larger scale (it plans to acquire $500M of bitcoin).
Only the past is known with certainty. Gold’s 40% rise over the past year justified its traditional safe-bet status, and bitcoin’s “youth” means its staying power remains unproven. Companies like MicroStrategy tend to harness bitcoin’s “volatility” as opposed to making a just pure directional bet.
Bluebird’s gamble could redefine mining finance, but it’s a high-stakes bet. Only time will tell if other miners follow suit or if bitcoin’s shine fades against gold’s enduring gleam.