Key Points
- Electric vehicle company Nuvve plans to invest up to 30% of its surplus cash into Bitcoin.
- The company also intends to accept Bitcoin as payment from customers and suppliers.
Nuvve, a Californian public company that focuses on integrating electric vehicles into the grid, has announced that its board has approved the decision to hold Bitcoin as a primary asset in its treasury. The San Diego-based company revealed that it plans to invest up to 30% of its excess cash, calculated based on its estimated operating expenses for the next six months, into Bitcoin. The actual amount of Bitcoin purchased will depend on the market conditions and the company’s business needs.
Expanding Payment Options
The decision to hold Bitcoin is not just about investment. Nuvve also plans to accept Bitcoin as a payment method from its customers and suppliers. This move is in line with the company’s core mission of promoting grid electrification through innovation. Nuvve CEO Gregory Poilasne stated that accepting Bitcoin would provide more payment options for customers and suppliers, potentially reducing the transactional friction associated with digital currencies.
Company Background and Market Response
Established in 2010, Nuvve specializes in vehicle-to-grid technology, enabling electric vehicles to share power with the grid. The company has not yet specified when it will begin buying Bitcoin or how much it plans to hold in the long term. Following the announcement, Nuvve’s shares rose by 1.42% to $2.85 in pre-market trading.
By including Bitcoin in its treasury, Nuvve seems to be following in the footsteps of other public companies that have turned to Bitcoin for diversification. For instance, Oxbridge Re Holdings Limited, a publicly listed reinsurance and tokenized asset company, announced earlier in January that it added Bitcoin and Ethereum (ETH) to its treasury reserves as a store of value.