Divestor Investments Inc. has announced a strategic shift in its treasury management to strengthen its balance sheet and create long term shareholder value. We are adopting Bitcoin investment as a treasury reserve asset, joining a global community of forward-thinking companies leveraging digital currencies.
Just kidding!
Actually, it was Goodfood Market Corp (TSX: FOOD) that announced the same today.
The Company has completed an initial Bitcoin investment of approximately $1 million through a spot Exchange-Traded Fund (ETF) and plans to strategically increase holdings by investing part of future excess cash flows in Bitcoin. “Accumulating Bitcoin aligns with our long-term focus on value creation, protects against inflation and rising food costs, and leverages its potential as digital capital,” said Jonathan Ferrari, Goodfood’s Chief Executive Officer. “Goodfood is proud to join the ranks of public companies holding Bitcoin on their balance sheet.”
What is interesting is that they will probably be creating shareholder value (by creating a selling opportunity for existing shareholders) with this announcement in an attempt to become the next Microstrategy (along with all the others trying to piggyback on the same concept). The stock is up about 8% today.
Goodfood, as of September 7, 2024 had about $24 million cash on its balance sheet, but also $6.2 million in debt payable March 31, 2025, $29 million payable March 31, 2027 and $12.7 million payable February 6, 2028. Perhaps this is part of a “Hail Mary” strategy to pay off the debt when Michael Saylor manages to talk up Bitcoin to US$1,000,000 per coin.