American Resources Corp. (NASDAQ:AREC) announced on December 1 2025 that it has entered into a tokenization services agreement with SAGINT Inc. through its minority stake in ReElement Technologies. The deal will deploy SAGINT’s blockchain platform to digitize ReElement’s physical mineral inventory, creating digital warehouse receipts and enabling compliant financing for critical and rare‑earth elements.
The partnership combines ReElement’s advanced refining capabilities with SAGINT’s digital asset infrastructure. Together they will issue tokenized representations of mineral stocks, allowing buyers and financiers to verify provenance, track custody, and access liquidity through blockchain‑backed securities. The arrangement also provides a digital ledger that records every transfer, ensuring regulatory compliance and reducing the risk of fraud or mislabeling in the supply chain.
Strategically, the agreement positions AREC to offer end‑to‑end digital infrastructure for U.S. critical‑mineral supply chains. By embedding traceability and financing into the commodity lifecycle, the company can tap growing demand from defense and electrification markets that require verified, domestic sources. The move also aligns AREC with the broader industry trend toward tokenized commodities, potentially opening new revenue streams and strengthening its competitive edge in a market that increasingly values transparency and compliance.
Despite the partnership’s promise, AREC’s recent financial performance has been weak. In the third quarter of 2025 the company reported an earnings per share of –$0.07 on revenue of $0.05 million, and its 2024 annual results showed a net loss of $39.3 million on revenue of $0.38 million, down sharply from $16.74 million in 2023. The partnership is therefore a strategic pivot that could help the company diversify its income base and improve profitability over time.
Mark Jensen, CEO of ReElement Technologies, said the agreement “represents a pivotal advancement for ReElement and the entire domestic critical minerals sector.” Jacob Clayton, CEO of SAGINT Inc., added that the platform “will enable ReElement to transform physical mineral inventories into digital assets that unlock efficient global trade and financing while maintaining the highest standards of compliance and security.”
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