Crypto Treasuries Abroad: When Food Companies, Love Hotels, and Cannabis Stores Embrace Bitcoin
Amid reports of soaring cryptocurrency prices, a growing, if unusual, number of publicly traded companies are adding digital assets to their corporate treasuries. While software firm MicroStrategy’s lead has been prominent, other firms in sectors like food, hospitality, cannabis, and energy are following suit. This trend, however, raises questions about sound business practice.
The Imitation Playbook: Following MicroStrategy’s Lead
A growing number of publicly traded companies are stockpiling digital assets like Bitcoin and Ethereum in what authorities call ‘crypto treasuries’. However, as more firms adopt this strategy, the playing field has become increasingly bizarre, with companies as seemingly unrelated as noodle manufacturers, love hotel operators, medical cannabis providers, renewable energy firms, and gambling marketing companies getting involved.
Some cite hopes of using the assets to bolster struggling businesses or simply capitalizing on recent price gains. Critics, however, argue adding crypto won’t necessarily save poorly managed companies. “Most new ‘treasury companies’ are gimmicks, and will likely fail,” Andrew Bailey, a senior fellow at the Bitcoin Policy Institute, warned recently. “A badly run business doesn’t become a good one just because it is acquiring sound money.”
Case Studies: Unlikely Entrants into the Crypto Space
DDC Enterprise
Food and recipe giant DDC Enterprise recently closed a $528 million funding round explicitly earmarked for a Bitcoin treasury. Based in Hong Kong, the company owns brands like Thai food line Yai’s Thai and noodle/soup brand Nona Lim, alongside recipe-sharing platform DayDayCook. DDC held 368 BTC, worth approximately $43.4 million.
The company appears to have fully embraced the pivot, renaming assets recently to signal its new focus on “Decentralize Digital Capital”.
Metaplanet
Often dubbed “MicroStrategy of Japan”, Metaplanet manages budget accommodations known as ‘love hotels’ in Japan. Founded in 1999, the company became a notable MicroStrategy acolyte by holding a substantial portfolio of 15,555 BTC valued at $1.84 billion.
Dogecoin Cash Inc.
This Canadian firm, formerly active in the cannabis industry and operating a medicinal cannabis telemedicine wing, now champions a knockoff meme coin (Dogecoin Cash, DOGC). It holds 2,020,000,000 DOGC, reportedly worth $3.5 million.
Solar Bank
Though focused on renewable energy development, engineering, and construction, Canada-based Solar Bank announced in June its intention to build a Bitcoin treasury. The company, facing criticism for Bitcoin’s supposed high energy consumption, has not yet disclosed specific purchase plans.
SharpLink Gaming
SharpLink Gaming, which uses AI technology to match gamblers with betting companies, has positioned itself against Bitcoin. Since May 2023, the company has acquired nearly $644 million worth of Ethereum, becoming one of the largest holders of the second-largest cryptocurrency among publicly traded firms.
The diversification into cryptocurrency by businesses ranging from noodle soup brands to love hotels highlights a trend extending beyond established crypto interest. However, whether these unexpected crypto treasuries constitute solid business practice or simply roll the dice on a volatile asset remains a key question in the evolving crypto landscape.
