LONDON: Hot Rocks Investments Plc announced Tuesday it has subscribed for 7.5 million new ordinary shares in Mendell Helium Plc at 2 pence per share, investing £150,000 ($190,000) as part of Mendell’s £515,000 ($650,000) fundraising round.
In addition to the equity stake, Hot Rocks received 7.5 million warrants in Mendell, half exercisable at 4 pence per share and the other half at 6 pence. The warrants include accelerated exercise clauses if Mendell’s shares trade above 10 pence and 15 pence, respectively.
Mendell Helium, which explores helium and methane resources, is evaluating the use of excess methane from its Rost 1-26 well in Fort Dodge, Kansas, to power Bitcoin mining operations. The company is also assessing similar opportunities in Texas and Nebraska.
As part of its strategy, Mendell is developing a Bitcoin treasury policy to accumulate and hold Bitcoin as a reserve asset, supporting its expansion in the Fort Dodge area. The policy may include spot market purchases and potential mining initiatives.
Gavin Burnell, managing director of Hot Rocks, said the investment aligns with the firm’s focus on emerging opportunities in digital assets. “Mendell is at an exciting stage with high-impact developments ahead,” Burnell said.
Hot Rocks holds equity or warrant positions in multiple companies, including Phoenix Digital Assets Plc, Supernova Digital Assets Plc and other energy and mining firms.
Key Details:
- Investment: Hot Rocks subscribed to 7.5 million Mendell shares at 2p each (£150,000).
- Warrants: 7.5 million warrants issued, split between 4p and 6p exercise prices.
- Bitcoin Strategy: Mendell exploring methane-powered Bitcoin mining and treasury reserves.
- Hot Rocks Portfolio: Includes stakes in over 20 energy, mining and digital asset firms.