Vanadi Coffee Approves €1 Billion Bitcoin Investment Amid Losses

Vanadi Coffee, a publicly traded coffee chain based in Alicante, Spain, has made a bold strategic move by approving a plan to invest up to €1 billion in Bitcoin. This decision, backed by shareholders on June 29, marks a significant shift in the company's financial strategy, positioning it at the forefront of corporate Bitcoin adoption in Spain. The company has already purchased 54 BTC, valued at approximately €5.8 million, and aims to make Bitcoin its primary reserve asset. This move is part of a broader effort to redefine its business model, similar to other companies like Strategy and Metaplanet, which have also adopted Bitcoin as a key component of their treasury strategies.

Vanadi's decision comes amidst financial struggles, as the company reported a loss of €3.3 million in 2024, a 15.8% increase from the previous year. Rising competition and operating costs, particularly the increasing cost of coffee, have contributed to the company's financial strain. Despite these challenges, Vanadi is seeking long-term growth and has received significant investment offers, including one from Alpha Blue Ocean, which plans to invest over €1.5 billion in 15 companies across 15 countries.

However, Vanadi's ambitious Bitcoin move is not without risks. The company's small size, slim operating margins, and lack of experience in crypto treasury management could expose it to volatility and regulatory scrutiny. Unlike Strategy, which has a tech-focused leadership team with extensive experience in capital markets, Vanadi's management faces a steep learning curve. The regulatory climate for digital assets in Spain is also conservative, adding another layer of complexity to the company's plans.

Despite these challenges, Vanadi is not alone in its Bitcoin bet. Companies worldwide are increasingly adding Bitcoin to their treasury strategies, with US-based crypto firm Bakkt recently announcing plans to purchase up to $1 billion of Bitcoin. Tesla and Coinbase are among the other companies that have pursued similar strategies. What sets Vanadi apart is the scale of its ambition relative to its core business—a €1 billion Bitcoin bet for a café chain with six locations and persistent losses is an aggressive move by any measure.