Nuvve plans to invest 30% of cash reserves in Bitcoin

Nuvve Holding Corp., a Nasdaq-listed electric vehicle (EV) energy technology firm, has announced its intention to allocate up to 30% of its excess cash for purchasing Bitcoin (CRYPTO:BTC).

This decision comes as part of a broader strategy to diversify the company’s treasury holdings and to facilitate Bitcoin payments for its customers and suppliers.

In a press release dated January 28, Nuvve stated that the allocation would be based on its estimated operating expenses over the next six months.

“BTC acceptance will promote more payment options for customers and suppliers with potentially less transactional friction inherent to digital currencies,” stated Gregory Poilasne, the founder and CEO of Nuvve.

Despite this ambitious plan, Nuvve's current financial situation raises questions about the feasibility of significant Bitcoin purchases.

The company's latest balance sheet reveals that it holds approximately $325,425 in cash.

If Nuvve were to invest 30% of this amount into Bitcoin, it would only be able to acquire just under one Bitcoin at the current market price of around $101,522.

Following the announcement, Nuvve's stock experienced a slight uptick, closing at $2.81 with a 1.81% gain on January 28.

However, this is a stark contrast to its all-time high of $8,000 in January 2021 and reflects a long-term decline in value.

In the third quarter of 2024, Nuvve reported revenues of $1.92 million, marking a 29.3% decrease from the previous quarter.

This investment strategy aligns Nuvve with other publicly traded companies that have adopted similar approaches to bolster their financial stability amid rising cryptocurrency interest.

As of now, 62 public companies collectively hold over 618,615 Bitcoins valued at more than $62.6 billion, with MicroStrategy being the largest holder at over 471,000 Bitcoins.

At the time of reporting, the Bitcoin (BTC) price was $102,540.