Vanadi Coffee, a struggling Spanish cafe chain that operates in just six locations, has turned to Bitcoin as a potential lifeline and joined the trend among financially strained companies hoping to find a fix.
Shareholders have approved a unanimously approved plan to accumulate up to $1.17 billion (€1 billion) in crypto despite posting a total loss of $3.9 million last year. announcement I'll read it on Sunday.
Despite revenue growth, Banadi remains bound by cash, deepening annual losses, suffering from negative operating cash flows and thin liquidity, according to data from BME Growth, a multilateral trading facility run by Spanish stock exchange group Borsa Y Mercados Espanyol.
In any case, the coffee chain is “redefine” its business model, seeking a rough translation of its Spanish reading, “using Bitcoin as a major reserve asset and a massive accumulation as part of its financial strategy.”
Vanadi Coffee bought 20 BTC pieces for $109,880 each, and at the end of June a total of 54 BTC. The assets are detained in BIT2ME, a local crypto exchange registered with the Bank of Spain.
With the change, its board is able to negotiate convertible debt funds to reflect Michael Saylor's playbook, although there is no meaningful revenue stream.
“Most new 'Bitcoin Treasury companies' are gimmicks and will likely fail,” said Andrew Bailey, a senior fellow at the Institute of Bitcoin Policy. Decryption.
“There is a diseconomy of scale that gives new entrants privileges, but a business that runs badly doesn't become a good business just because it's gaining sound.”
Directors are permitted to increase capital by up to 50% and exclude the stipulated 20% preemptick subscription rights that can significantly dilute the profits of existing shareholders.
Vanadi Coffee pays up to 5% to intermediaries, including their own board members, for capital raised under their funding strategy.
“Gimmick” layer
Pivot follows a similar move from Australian biotech companies Opil Last week, there was just $42,880 in cash at the end of March, and after burning over $174,200 in that quarter, it turned into Bitcoin as the last and last Treasury strategy on the surface.
“Bitcoin has long looked strange and dangerous for MBA types who benefit from the existing financial system,” Bailey noted. “I think their hearts will remain closed to Bitcoin.
Compared to strategies targeting fixed income investors at institutions with billions of assets, Vanady represents what Bailey calls the “gimmick” layer of Bitcoin finance companies.
“Triple Holdings” is easy when starting out with “just 2 bitcoins,” but the underlying business issues remain, Bailey explained.
“But the strategy is different from those small shops, stalking bigger prey.
Banadi didn't return soon Decrypt's Request a comment.
edit Sebastian Sinclair
