Vanadi Coffee SA, a Spanish coffee chain recognized for its espresso beverages and café establishments, is contemplating a dramatic overhaul of its business model by integrating Bitcoin into its core strategy. The company proposes to acquire approximately $1.13 billion (€1 billion) worth of the cryptocurrency. Should this plan receive approval, Vanadi Coffee would transform from its current identity as a coffee brand into an entity it terms a “crypto first” firm. The company's board is slated to deliberate on this significant proposal on June 29.

This potential strategic shift occurs against a backdrop of significant financial challenges for Vanadi Coffee. According to reports from local media, the company incurred a net loss of $3.7 million in the year 2024. Its performance in the stock market has also been notably poor. After its shares (ticker: VANA) began trading in July 2023 with an opening price of €3.28 ($3.73), their value has plummeted to a mere €0.28 ($0.32). This represents a precipitous decline of approximately 91.46%. In light of these substantial losses, Chairman Salvador Martí is strongly advocating for the Bitcoin investment plan as a means to redefine the company's operational strategy and financial outlook.

Evidence from trading data suggests that Vanadi Coffee has already initiated its involvement with Bitcoin. Chairman Martí authorized an initial purchase of 5 BTC, with the total cost amounting to roughly $527,110. Subsequent to this acquisition, Vanadi’s stock price experienced a temporary increase on May 21, rising from €0.40 ($0.46) to approximately €0.49 ($0.56) within a single trading day. However, these gains proved to be transient. When the price of Bitcoin decreased from around $111,000 to about $105,000, Vanadi’s share price reverted to €0.28 ($0.32). This rapid fluctuation underscores the potential for the company's market valuation to become highly correlated with the inherent volatility of cryptocurrency prices. Current trading data indicates Bitcoin is valued at $104,717.

The plan to accumulate up to €1 billion in Bitcoin is not solely reliant on existing cash reserves. Chairman Martí is seeking authorization, or "carte blanche," to negotiate convertible financing. This financial mechanism would permit Vanadi to issue new shares to generate the capital required for additional Bitcoin purchases. While this approach could attract new investors anticipating profits from Bitcoin's performance, it poses a risk of dilution for current shareholders, potentially diminishing the value of their existing stakes. If Bitcoin does not experience a significant rally, the company's shares could remain suppressed, and the burden of newly acquired debt or equity could become substantial. In essence, this strategy effectively ties Vanadi Coffee’s financial destiny to Bitcoin's future market movements.

Vanadi Coffee’s proposed venture into Bitcoin is not an isolated phenomenon but rather part of a broader trend where corporations are increasingly integrating Bitcoin into their financial portfolios. Since MicroStrategy (now rebranded as Strategy) commenced its notable Bitcoin purchasing program in August 2020, numerous other firms have adopted similar strategies. Reports indicate that at least 12 companies, including GameStop, have made investments in Bitcoin during the current year. Furthermore, some national governments are reportedly discussing the possibility of holding Bitcoin as a reserve asset. Viewed in this context, Martí’s proposal aligns with a larger movement of businesses converting portions of their cash holdings into BTC. Nevertheless, this strategy also carries significant inherent risks, particularly as Vanadi would be left without a financial buffer if its traditional coffee sales continue to falter.