The Spanish coffee chain will follow Strategy with a $1 billion Bitcoin bet
Source: beincrypto
Compilation: Blockchain Knight
"Spanish coffee chain Vanadi plans to invest more than $1.1 billion in BTC as a core move in its new reserve strategy. This is a new trend that is increasingly emerging in corporate boards around the world.
The company does not intend to use BTC to supplement revenue, but rather intends to fully transform into a BTC-centric business. After a loss in 2024, Chairman Salvador Martí is betting on the Web3 space.
MicroStrategy was the first company to build a large-scale BTC reserve, and this practice has become a significant trend in recent months. From logistics companies in China to football teams in France, all different types of businesses are buying BTC, and now a new one has joined the bandwagon.
Local media recently reported that Spanish company Vanadi Coffee SA will invest $1.1 billion to buy BTC.
Some large corporations have adopted BTC reserves to enhance their diversified portfolios, but that's not Vanadi's goal. Chairman of the board Salvador Martí plans to move the company from the coffee business to the BTC business in a similar way to MicroStrategy. At the next board meeting on June 29, Marti made it clear that he wants to transform Vanadi into a "BTC-first" business.
"I request the board of directors to authorise me to implement a BTC accumulation strategy with an investment cap of €1 billion (about $1.1 billion) and grant discretionary authority to negotiate one or more convertible financing channels to fund the implementation of this strategy," Martí reportedly said.
Martí's plan is similar to emulating MicroStrategy on multiple levels: Just like Michael Saylor, Martí plans to fund these BTC acquisitions by issuing a large number of new Vanadi shares.
He had already made his first purchase two weeks ago, buying 5 BTC for about $500,000. This massive investment commitment sent Vanadi's stock price soaring for a while, but most of the day's gains have since faded.
This wild swing in the stock price highlights the risks that could exist in Vanadi's transition to BTC. BTC may be less volatile than usual at the moment, but its price can still be extremely volatile.
Tying a company's fate to BTC also exposes the company to all sorts of entirely new risks.
Still, BTC may still be Vanadi's hope. The company lost $3.7 million in 2024, almost $600,000 more than its annual revenue.
GameStop fell into a similar dilemma earlier this year, but its BTC investment has paid off well. Since the investment in March, GameStop has continued to increase its holdings and become a major holder of BTC. Maybe BTC will do the same for Vanadi.