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Vanadi Coffee SA, a Spanish coffee chain, is planning to restructure its business by investing $1.13 billion (€1 billion) in Bitcoin. This decision comes as the company faces significant losses and a 91% drop in its stock value. The board of directors will review the proposal on June 29, which could mark the company's shift from its traditional hospitality model to a Bitcoin-focused business. This move aligns with a broader trend of companies adopting Bitcoin as a treasury asset.
Amidst troubling finances, Salvador Martí, the chairman of Vanadi, is spearheading the company's new strategy. Due to rapid market changes, the firm incurred a loss of $3.7 million in 2024. From the initial price of €3.28 ($3.73) on July 1st, 2023, Vanadi’s shares have now dropped by more than 90% and are near €0.28 ($0.32). This steep decline has raised concerns about the company’s future as it looks to Bitcoin to stabilize its finances.
The decision to purchase Bitcoin is part of how Vanadi intends to address its financial challenges. Martí suggests that growing the company’s Bitcoin position could lead to an increase in the stock’s value and attract more investors. Currently, Vanadi has made a Bitcoin purchase of five units, which cost around $527,110 at the time. As a result, the company’s stock price increased from €0.40 ($0.46) to €0.49 ($0.56) within one day due to the Bitcoin news.
However, Vanadi’s shares soon fell back in line with Bitcoin’s price fluctuations. When Bitcoin’s value dropped from approximately $111,000 to $105,000, the company’s stock price also declined to around €0.28 ($0.32). The stock’s volatility highlights how closely Vanadi’s future could become tied to Bitcoin’s performance if the plan is approved.
Martí has also applied for authorization to use convertible financing to buy more Bitcoin. The financing method allows Vanadi to raise funds by issuing new shares. Although this may attract new investors, those already part of the company could find their shares diluted if the company proceeds with issuing more equity.
Vanadi is among the growing number of businesses using Bitcoin as a treasury asset. GameStop, like other businesses, began investing in Bitcoin after MicroStrategy announced its purchase of the cryptocurrency in 2020. Some governments have mentioned the possibility of using Bitcoin as an addition to their reserve assets.
While corporations are taking a greater interest in Bitcoin, some people within the industry are still doubtful about Vanadi’s aims. Experts point out that Bitcoin’s impact is restricted to traders and wonder if the Payment change indicates trust or just more effort to build positive publicity.
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If the proposal is approved, Vanadi Coffee would be included among the businesses choosing to merge traditional operations with Bitcoin investment. This will likely be a major shift in strategy for the Spanish coffee chain, potentially shaping its future in line with developments in digital assets.
