Mendell Helium plc has taken a bold step toward modernizing its financial strategy with the formal adoption of a Bitcoin Treasury Management Policy (BTC Policy), marking a strategic pivot in how the company manages long-term reserves. This move positions Mendell Helium at the intersection of traditional natural resource development and cutting-edge digital asset integration.
The announcement follows the company’s earlier disclosure on 23 June 2025 and underscores its commitment to enhancing financial resilience through diversified treasury holdings. Alongside this policy launch, Mendell Helium has issued 2,325,000 new ordinary shares at 2 pence each—partly to settle accrued director remuneration and adviser fees—demonstrating a cash-preserving approach during a critical growth phase.
Strategic Bitcoin Adoption for Treasury Resilience
Under the newly adopted BTC Policy, Mendell Helium intends to allocate up to 50% of free cash flows from future helium production toward acquiring Bitcoin (BTC) as a long-term reserve asset. This decision is rooted in the anticipated increase in output from M3 Helium, the Kansas-based helium producer it has an option to acquire.
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The Board views Bitcoin not as a speculative instrument but as a strategic store of value that reduces reliance on traditional financial systems. By integrating BTC into its treasury, the company aims to hedge against inflation, currency devaluation, and systemic risks associated with conventional banking.
Additionally, up to 50% of surplus cash—after accounting for operational expenses and working capital needs—may be used for Bitcoin purchases. Notably, the policy strictly prohibits leveraged trading, derivatives, or speculative activities. All digital asset strategies are aligned with long-term holding objectives.
Secure Custody and Regulatory Compliance
Security is central to the BTC Policy. The company will engage a regulated custodian—either registered with the UK’s Financial Conduct Authority (FCA) or equivalent international regulator—to manage its digital holdings. To mitigate cyber risks:
- Bitcoin will be stored in multi-signature wallets, requiring approval from at least two Board-nominated signatories.
- Assets will be held in offline cold storage, minimizing exposure to online threats.
This structured custody framework ensures that digital assets are protected with enterprise-grade security protocols while maintaining compliance with corporate governance standards.
Approved Digital Assets and Yield Strategy
While Bitcoin remains the primary approved crypto asset under the policy, the Board retains discretion to include other mainstream cryptocurrencies—up to 15% of total treasury holdings—provided they can generate yield. Assets like Ethereum (ETH), known for staking rewards, may qualify if they meet strict criteria.
Crucially, any yield generated from these alternative assets must be reinvested into additional BTC or other Board-approved holdings. This reinforces the core objective: strengthening the company’s Bitcoin position over time.
Governance and Oversight Framework
To ensure accountability and adherence to the BTC Policy, Mendell Helium will establish a dedicated Treasury Committee. Comprising at least one non-executive director, the Chief Executive Officer, and the Financial Controller, this committee will:
- Monitor compliance with the BTC Policy
- Review treasury allocations quarterly
- Evaluate custodial performance and market conditions
This governance model provides transparency and oversight, ensuring that digital asset decisions align with shareholder interests and long-term strategy.
M3 Helium Acquisition and Production Outlook
The strategic rationale for Bitcoin adoption is closely tied to Mendell Helium’s pending acquisition of M3 Helium—a key player in southwestern Kansas with interests in ten wells. Five of these—Peyton, Smith, Nilson, Bearman, and Demmit—are already producing helium.
The Rost well, located near Dodge City, is particularly promising. A July 2024 test confirmed a 5.1% helium concentration, with historical flow rates reaching 2,900 Mcf per day. Recompletion efforts are underway, targeting production by July 2025. Once operational, a mobile Pressure Swing Adsorption (PSA) plant will purify raw gas onsite to 99.999% helium purity, capable of processing up to 800 Mcf daily.
Furthermore, M3 Helium’s proximity to the Hugoton gas field and existing infrastructure—including gathering networks and the Jayhawk processing plant—enables rapid integration of new production streams.
Sustainable Innovation: Bitcoin Mining from Stranded Gas
Beyond helium production, Mendell Helium is exploring innovative ways to utilize uncommercial gas—natural gas that cannot be economically transported or sold. The company is assessing opportunities to repurpose this gas to power on-site Bitcoin mining operations.
This dual-use model allows residual gas (after helium extraction) to fuel generators supporting mining servers. It transforms waste into value while reducing flaring and environmental impact—a win for both economics and sustainability.
Nick Tulloch, CEO of Mendell Helium, emphasized progress:
“With M3 Helium poised to enter a new phase of development, we’ve accelerated our treasury plans and are well advanced in selecting a suitable BTC custodian. Our goal is to have all systems in place before Rost well production begins.”
Equity Issuance and Capital Structure
In line with share-based remuneration announced on 23 June 2025:
- 1,125,000 new ordinary shares were issued to Nick Tulloch, CEO, settling £22,500 in accrued compensation.
- An additional 1,200,000 shares were issued to a professional adviser in lieu of £24,000 in fees.
All shares were issued at 2 pence each, matching the previous subscription price. Application has been made for these 2,325,000 new shares to be admitted to trading on the Aquis Stock Exchange (AQSE) Growth Market, expected by 9 July 2025.
Following admission, the company’s total issued share capital will consist of 115,255,635 ordinary shares, each carrying one vote. This figure serves as the basis for shareholder disclosure obligations under FCA rules.
Risk Disclosure and Investor Transparency
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The company acknowledges that Bitcoin investments carry significant risks. While it believes BTC enhances long-term value, it emphasizes that:
- Cryptocurrencies are unregulated in the UK
- Prices are highly volatile
- There is no protection under the Financial Ombudsman Service or Financial Services Compensation Scheme
Key risks include:
- Sudden price drops
- Cybersecurity threats
- Liquidity constraints
- Potential for fraud or operational failure
Despite these challenges, the Board maintains that Bitcoin’s scarcity, decentralization, and global acceptance make it a compelling reserve asset for forward-thinking enterprises.
Frequently Asked Questions (FAQ)
Q: Is investing in Mendell Helium the same as investing directly in Bitcoin?
A: No. While the company may hold Bitcoin as part of its treasury, shareholders invest in Mendell Helium plc—not directly in BTC. The stock price reflects broader corporate performance, including helium operations and financial strategy.
Q: How does the BTC Policy prevent speculative trading?
A: The policy explicitly bans leveraged trading, derivatives, and short-term speculation. All Bitcoin acquisitions are intended for long-term holding only.
Q: What happens if the M3 Helium acquisition doesn’t go through?
A: The Option remains subject to due diligence and regulatory requirements. If not exercised, the BTC Policy will still apply but may be adjusted based on revised cash flow projections.
Q: Can shareholders influence Bitcoin investment decisions?
A: Major treasury policy changes would typically require shareholder notification or approval. The Treasury Committee operates under Board authority but within defined governance limits.
Q: How does Bitcoin mining using stranded gas benefit the environment?
A: It reduces flaring—the burning of excess gas—by converting it into useful energy for mining. This lowers greenhouse gas emissions and improves resource efficiency.
Q: Where can I read the full Bitcoin Treasury Management Policy?
A: The policy is available on the company's official website for public review.
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