Heritage Distilling, a Washington-based producer of handcrafted spirits, announced plans to start accepting Bitcoins for transactions and keeping the cryptocurrency on hand as a financial reserve.
Starting on January 10th, our company decided to implement a Bitcoin (BTC) treasury policy, which allows us to receive Bitcoin in exchange for our products and services through our online platform. As a result, we are now the pioneering publicly traded spirits company that has incorporated Bitcoin into our business structure.
Under the latest company policy, they are open to accepting Bitcoin as a method of payment for their goods and services. This means they will continue to do so, regardless of any potential fluctuations in the value of Bitcoin.
The new strategy aims to reap advantages such as gaining new customers, supporters, and investors, plus the profit margin buffer the company can establish. Additionally, it presents an opportunity for Bitcoin’s price to rise, which outweighs the potential for losses.
Heritage Distilling’s site suggests that they plan to accept Bitcoin for online transactions “shortly.
Heritage made the move to adopt Bitcoin after establishing their Technology and Cryptocurrency Committee, led by Matt Swann, who previously held the position of Chief Technology Officer at Nubank. The appointment of Matt Swann to the company’s Board of Directors took effect on January 6th was also announced.
Financial challenges
In light of financial difficulties, Heritage Distilling made a move; their recent financial statement revealed a revenue of $1.76 million but also a significant net loss of $3.43 million during the third quarter of 2024.
In simpler terms, Matthew Sigel, who leads digital assets research at VanEck, expressed worries about Heritage Distilling’s financial stability. He pointed out that with a loss of $3 million on sales of $2 million over the last quarter, it remains uncertain how much Bitcoin they might be able to acquire unless there’s an improvement in their profitability.
In the USA, the thriving craft spirits industry is showing no signs of slowing down, boasting approximately 3,069 active distilleries by August 2024 – a notable jump of 11.5% from the 2,753 distilleries recorded in August 2023.
As reported by the American Craft Spirits Association, craft spirits make up about 4.6% of the entire U.S. spirits industry in terms of volume. In terms of monetary value, craft spirits comprise approximately 7.5% of the U.S. market, which is a slight decrease from 7.7% in the year 2023.
Corporate adoption of Bitcoin treasuries gathers pace
The adoption of Bitcoin as a corporate treasury asset is gaining momentum among US companies.
In 2020, MicroStrategy, known as the biggest corporate Bitcoin investor, made its initial purchase of Bitcoin as part of an investment strategy aimed at providing greater profits for shareholders while also protecting against rising inflation rates.
At the moment, MicroStrategy owns roughly 447 thousand Bitcoins, which amounts to around $42.4 billion given the current value of each Bitcoin at about $94,781. More and more companies are joining this trend as Bitcoin prices keep soaring to unprecedented heights.
As per information from HODL15Capital as of January 6th, the combined total of Bitcoin held by the top 70 publicly traded companies amounts to approximately 597,644 Bitcoins. MicroStrategy takes the lead in this group, with a holding of 44,893 BTC, closely followed by Marathon Digital (44,893 BTC), Riot Platforms (17,429 BTC), and Hut 8 Mining (10,096 BTC).
Smaller companies take a page from MicroStrategy’s playbook
More and more smaller businesses in the public sector are starting to use Bitcoin as a component in their financial management plans, mimicking the approach taken by MicroStrategy in 2020.
On November 18th, Cosmos Health revealed intentions to incorporate Bitcoin and Ethereum into their treasury holdings, emphasizing the importance of these digital currencies as strategic investments.
On November 20th, Acurx Pharmaceuticals authorized spending as much as $1 million on Bitcoin. Meanwhile, Worksport, a company specializing in clean energy solutions, decided on December 5th to set aside up to 10% of its surplus operational funds for investment in both Bitcoin and Ripple (XRP).
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2025-01-11 15:20