Nuvve, a renewable energy electric car charging company, has announced plans to invest some of its spare cash reserves in Bitcoin. On January 28, the corporation declared that up to 30% of its surplus cash, calculated based on expected six-month operational expenses, will be utilized to purchase the cryptocurrency.
The decision is consistent with Nuvve’s objective to expand its payment choices and embrace digital currencies. CEO Gregory Poilasne stated that embracing Bitcoin might provide customers and suppliers more options while lowering transactional friction in traditional finance systems.
Nuvve, which is recognized for its EV charging system that allows energy to be transferred back to the grid, has joined a growing number of non-crypto public firms that have integrated Bitcoin into their treasury holdings. This trend followed Bitcoin’s 150% price growth over the previous year, which has prompted business expenditures targeted at bolstering financial reserves and increasing stock value.
Following the announcement, Nuvve’s shares (NVVE) briefly rose, closing at $2.81, up 1.81% on January 28. After hours, it rose an additional 1.42% to $2.85. However, the company’s share price has been in a long-term slump, falling 99.93% from its all-time high of $8,000 in January 2021 and 10% this month.
Financial data show that Nuvve has $325,425 in cash reserves at the end of the third quarter of 2024. If it sticks to its aim to invest 30% of this sum in Bitcoin, the company will be able to buy less than one BTC at current market values.
Despite its financial constraints, Nuvve’s decision represents a larger trend among publicly traded companies considering Bitcoin as a strategic asset. Industry leaders such as MicroStrategy and Tesla have already included Bitcoin in their portfolios, with the former having 471,107 BTC and the latter owning 9,720 BTC. As business interest in Bitcoin grows, Nuvve’s action represents another step toward widespread adoption of digital assets.
