Popular Spanish coffee chain brand Vanadi Coffee SA seeks to become a Bitcoin-first company by acquiring over $1 billion worth of BTC using MicroStrategy’s playbook.
Local media Alicanteplaza reports that the company’s chairman, Salvador Martí, recently proposed this plan to the board.
Under the plan, Vanadi aims to accumulate up to $1.13 billion (€1 billion) worth of Bitcoin, potentially turning itself into a BTC-first company from a coffee brand.
Vanadi’s Chair Seeks to Pivot to Bitcoin Amid Company’s Financial Woes
Vanadi’s Bitcoin transition plan follows its announcement of a net loss of $3.7 million in 2024. In addition, the report claimed that Vanadi’s shares (VANA) have crashed significantly since their debut in July 2023.
VANA, which debuted at a unit price of €3.28 ($3.73) in July 2023, has plunged nearly 91.46% to €0.28 ($0.32). Amid the financial losses, Martí asked the board to pivot Vanadi into a Bitcoin-first company.
Instead of buying and holding Bitcoin to offset the losses, Martí floated a more ambitious plan that could tie the company’s overall success to BTC’s performance.
Additionally, Martí asked the board for a “carte blanche” to enable the firm to negotiate convertible financing. The proposal would see Vanadi offer new shares to fund the acquisition of Bitcoin.
Notably, the board will deliberate on Martí’s proposal at its next meeting on June 29.
VANA’s Performance After Initial Purchase of 5 BTC
To demonstrate how Bitcoin might impact Vanadi’s performance, Martí made an initial purchase of 5 BTC at an average cost of $527,110.
Interestingly, the value of its stock skyrocketed to around €0.49 ($0.56) from €0.40 ($0.46), registered the previous day on May 21. However, VANA has lost these gains, as it trades at €0.28 ($0.32).
The drawdown coincides with a drop in Bitcoin’s price. For perspective, Bitcoin crashed from the $111,000 mark to $105,000 within this period. Vanadi’s chaotic stock performance reflects the risk of transitioning to a Bitcoin-first company, as BTC would majorly influence its price.
Growing Interest in Bitcoin
Nonetheless, Martí still considers Bitcoin the best hope of saving Vanadi from its recent financial woes. This ambition could be driven by the growing interest in Bitcoin among institutions and governments.
Since MicroStrategy began buying Bitcoin in August 2020, the trend has gained global momentum. Many companies are now converting part of their cash reserves into Bitcoin or raising funds to acquire the asset.
As previously reported, at least 12 companies, including GameStop, have invested in Bitcoin since the beginning of this year. This trend may not end anytime soon, especially as the United States intends to buy and hold BTC as a reserve asset.
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