A Spanish coffee company, Vanadi Coffee, is making a huge bet on Bitcoin. They’re proposing to spend a whopping $1.13 billion (€1 billion) to buy Bitcoin, completely changing their business from coffee to being a “crypto-first” company. The company’s board will vote on this risky plan on June 29th.
A Coffee Company’s Financial Troubles
Vanadi isn’t doing so well financially. They lost $3.7 million in 2024, and their stock price has plummeted by about 91% since its initial public offering (IPO) in July 2023. The company’s chairman, Salvador Martí, believes this Bitcoin investment is their best chance for a turnaround.
A Risky Bitcoin Investment
Vanadi has already dabbled in Bitcoin, buying 5 BTC for roughly $527,110. Their stock price briefly jumped after this purchase, but it quickly fell again when the price of Bitcoin dropped. This highlights how much Vanadi’s fortunes would be tied to Bitcoin’s price volatility.
The Plan: Convertible Financing
Martí’s plan isn’t just to buy Bitcoin with existing funds. He wants to raise additional money through convertible financing. This means issuing new shares to attract investors hoping to profit from a Bitcoin price increase. However, this could dilute the value of existing shares, potentially hurting current shareholders if the Bitcoin investment doesn’t pay off. Essentially, the company’s future hinges entirely on Bitcoin’s performance.
Following the Bitcoin Trend
Vanadi isn’t alone in this risky move. Many companies, including GameStop, have invested in Bitcoin recently. Some governments are even considering holding Bitcoin as a reserve asset. While this shows a growing trend, it also means Vanadi is putting all its eggs in one basket, with no backup plan if their coffee business continues to struggle.
