Solidion technology, Inc. (NASDAQ: STI), a leading provider of advanced battery materials, has announced a significant strategic allocation of bitcoin within its corporate treasury. This move positions Solidion alongside other prominent US companies such as MicroStrategy, Tesla, Block (formerly Square), Semler Scientific, Coinbase, Riot Platforms and Marathon Digital Holdings, all of which have integrated btc into their treasury strategies.
Solidion Makes a MicroStrategy-Style bitcoin Move
in a <a target="_blank" href="https://www.prnewswire.com/news-releases/solidion-technology-announces-strategic-bitcoin-allocation-for-corporate-treasury-302305274.html” target=”_blank” rel=”noopener nofollow”>Press release Dated November 14, 2024, Solidion technology detailed its decision to allocate a substantial portion of its excess cash reserves to bitcoin. The company plans to commit 60% of any excess operating cash to btc purchases, convert interest earnings from money market accounts into bitcoin, and designate a portion of future capital raises for long-term btc purchases.
Vlad Prantsevich, CFO of Solidion technology, said: “We firmly believe in bitcoin's transformative potential for the financial system and view our allocation as a secure store of value and a compelling investment.”
Furthermore, he emphasized the impact of recent regulatory developments, noting: “With the recent approval of btc spot ETFs by the Securities and Exchange Commission, we have already seen significant steps towards institutional acceptance. Furthermore, we anticipate that the next evolution of bitcoin will be widespread adoption as a reserve asset by both sovereign nations and corporations, creating substantial value and long-term growth potential for bitcoin as it gains greater global acceptance.”
Solidion's core business remains focused on the development and commercialization of high-capacity silicon anode materials, including graphene-enhanced and silane-gas-free versions for automotive manufacturers and energy storage applications. The company has an extensive portfolio of more than 550 patents covering innovations in advanced battery technologies.
According to the press release, the decision to incorporate btc into its treasury strategy aligns with a broader trend of corporate adoption driven by bitcoin's reputation as “digital gold” and its potential as a hedge against inflation. The election of the Trump administration has further cemented the decision.
“The recent election results have brought significant attention to bitcoin, with a new administration known for its pro-btc stance and support for a bitcoin Strategic Reserve. The potential for favorable regulatory frameworks and greater institutional adoption, highlighted by the recent wave of bitcoin ETFs, underlines btc's value proposition and makes it an ideal asset for corporate treasuries seeking inflation-resistant stores of value.” , says the company.
While the majority of the btc community applauded Solidion technology's decision, some commentators say it seems “very desperate, but the Hail Mary could save them.” STI's share price is down -95% so far this year.
Interestingly, Solidion could try a move similar to that of the Japanese company Metaplanet. The company called “Japanese MicroStrategy” lost 98% of its share price since 2006 before announcing its btc treasury strategy in May of this year. Since then, Metaplanet's share price has risen more than 500%.
At the time of publication, btc was trading at $89,300.
Featured image created with DALL.E, chart from TradingView.com
