Vanadi Coffee, a Spanish coffee chain, is making a bold move to reinvent itself as a Bitcoin-centric holding firm in a bid to turn around its struggling financial situation. The company recently announced plans to allocate €1 billion into Bitcoin as part of a larger financial overhaul.
This decision has had a significant impact on Vanadi’s stock performance, with shares surging by nearly 20% in the past 24 hours and now trading at around €0.33 per share. The move comes as the company faces mounting financial challenges, including posting losses of €3.3 million in 2024 and projecting no profitability until 2027.
Salvador Martí, the chairman of Vanadi’s board, is leading the charge towards this new direction, advocating for a shift from traditional hospitality operations to a Bitcoin-focused treasury strategy. Martí has proposed seeking shareholder approval to invest up to €1 billion in Bitcoin and explore convertible financing options to support the initiative.
If successful, Vanadi will join a growing number of small-cap companies that are incorporating Bitcoin into their treasury reserves. This strategy, popularized by firms like MicroStrategy, has proven lucrative for those willing to take the risk.
However, not everyone is convinced of the merits of Vanadi’s pivot. Critics, such as Jacob King, CEO of WhaleWire, have labeled the move as a mere publicity stunt, highlighting the company’s lack of significant Bitcoin holdings and minimal online presence.
Despite the skepticism, Vanadi’s bold move towards Bitcoin integration represents a calculated risk that could potentially yield substantial returns if successful. As the company navigates this transition, it will be interesting to see how this strategic shift plays out in the ever-evolving landscape of cryptocurrency and finance.