With just six locations and millions in losses, Vanadi is hoping its crypto pivot can lift financials and bolster confidence in its business.



In brief

  • Shareholders approved the coffee chain's #bitcoin strategy despite negative equity.

  • Its board is authorized to raise $1.17 billion through convertible debt for BTC purchases.

  • Directors are eligible for $2.35 million in bonuses if the market cap exceeds $118 million.

Vanadi Coffee, a struggling Spanish café chain operating in just six locations, has turned to Bitcoin as a potential lifeline, joining a trend among financially strained firms hoping to find a fix.#BTC110KToday?

Shareholders unanimously approved plans to accumulate up to $1.17 billion (EUR$1 billion) in the crypto, despite posting losses totaling $3.9 million last year, the company's announcement on Sunday reads.#StrategyBTCPurchase

Despite revenue growth, Vanadi remains cash-strapped, posting deepening annual losses, struggling with negative operating cash flow and thin liquidity, according to data from BME Growth, a multilateral trading facility operated by Spain’s stock exchange group, Bolsas y Mercados Españoles.#BinanceAlphaAlert

In any case, the coffee chain seeks to “redefine” its business model and use Bitcoin as its "primary reserve asset, accumulating large amounts as part of its treasury strategy," a rough translation of its filing in Spanish reads.#Write2Earn

Vanadi Coffee bought 20 more $BTC at $109,880 each, totaling 54 BTC at the end of June. The assets are being held in custody with Bit2Me, a local crypto exchange registered with the Bank of Spain.

With the change, its board is allowed to negotiate convertible debt financing in a bid to mirror Michael Saylor’s playbook, though without any meaningful revenue stream.

"Most new 'bitcoin treasury companies' are gimmicks, and will likely fail," Andrew Bailey, senior fellow at the Bitcoin Policy Institute, told Decrypt.

"Though there are diseconomies of scale that privilege new entrants, a badly run business doesn't become a good one just because it is acquiring sound money."