The Bitcoin Business Newsletter | Three Businesses on a Bitcoin Standard

Key insight

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We welcome Brady Tinnin this week as he provides a fascinating look at bitcoin’s groundbreaking ability to improve your business’s competitive edge, no matter the industry. We’ll focus on three small businesses, all with unique goals, in the restaurant, sports, and construction industries.

You may not think that bitcoin is a practical implementation for your company if you’re not in finance or technology. However, the evidence against that reasoning is growing by the day as more companies from different backgrounds find unique ways to implement bitcoin into their daily operations. CEOs often overlook the inflationary virus plaguing their balance sheet, and failing to do anything about it can result in millions, or even billions, in lost revenue. For example, while nominal returns for Apple remained steady in the past decade, the company’s real returns have incurred a $15 billion loss, simply because it neglected the cash portion of its corporate treasury strategy. Smaller companies may not be able to afford such losses, but only a select few are taking action today to ensure their treasuries last long into the future.

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Tahini’s

Tahini’s is a Canadian-based franchise of Middle Eastern restaurants that found bitcoin as an answer to the inflationary pressures they faced in an industry that’s already notorious for tight profit margins.

Tahini’s follows in the footsteps of franchise giants like McDonald’s, which focuses on real estate acquisition for much of its success. In fact, 80% of McDonald’s assets are made up of real estate. Instead of purchasing more plots of land, however, Tahini’s devotes its profits to purchasing bitcoin. The company maintains a six-month cash balance for working capital expenditures but converts 100% of its remaining cash reserves to bitcoin.

By securing a foothold in digital real estate in the form of bitcoin, Tahini’s has more financial breathing room to compete with larger franchises and break away from other smaller competitors that struggle to fight inflation while remaining profitable. Tahini’s started a steady dollar-cost averaging (DCA) program that we discussed two weeks ago to mitigate the volatility that bitcoin is known for – particularly the harsh 77% correction bitcoin experienced following its peak in November 2021.

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Real Bedford FC

Real Bedford FC is a UK football club purchased by bitcoin podcaster Peter McCormack in 2021. Struggling to make a name for itself and competing in the league’s lowest-tier division, Real Bedford’s acquisition was a breath of fresh air for the team that has since moved up from 10th to 8th tier, and has attracted new fans, sponsors, and outside investors.

After McCormack purchased Real Bedford, the team adopted bitcoin as the primary reserve asset of its treasury, giving it a longer runway for future investment and expansion. By positioning themselves as the only bitcoin-focused football team in the league, Real Bedford doesn’t only have to rely on ticket sales. The team now enjoys year-round support from bitcoin sponsors and online merchandise purchases. They’ve cultivated a large new fanbase beyond the UK, all thanks to their dedication to carrying the bitcoin torch. And now, Real Bedford is catching the attention from investors, most recently receiving $4.5 million from the bitcoin-involved Winklevoss twins.

Focusing on bitcoin opened up several new revenue streams for Real Bedford, enabling them to invest in:

• new training center development
• a football academy to nurture local talent
• future support for girls’ and youth football
• greater funding for the club’s hardship fund, which gives financially-struggling families the opportunity to have their children play football

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SummerPlace Homes

SummerPlace Homes is a family-owned, Washington-based home construction company managing $10+ million in annual revenue.

As is innate to housing construction, projects often require large upfront expenditure and development plans spanning dozens of months, or even years. To finance these costs, construction companies like SummerPlace rely on credit lines from banks and have to tie up a large percentage of capital as collateral for the loans. SummerPlace historically held a diverse portfolio of assets to weather the economic storms that hit the banking industry hard, keeping themselves resilient and able to execute. But the company took its independence a step further by converting a chunk of its cash reserves into bitcoin to hedge against economic downturns and strengthen its sovereignty in an industry notoriously prone to counterparty risk.

Beyond bolstering a company’s financial independence, bitcoin is especially attractive to family-owned businesses like SummerPlace as its store-of-value properties make it ideal for passing down wealth from generation to generation. So if you dream of keeping your company within the family, placing bitcoin at the center of its treasury can make that reality possible in the face of growing uncertainty from rising inflation.

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Top News Stories

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Paul Tudor Jones: 'All Roads Lead to Inflation;' He's Long Bitcoin and Gold

The U.S. government's debt and deficit issues aren't going anywhere no matter who wins the presidency next month, said Jones.

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Bitcoin Exchange River Financial Allowing Users to Earn BTC Interest on Cash Deposits

Not a bank itself, River has teamed up with Lead Bank, a member of the FDIC, meaning user deposits are protected up to the value of $250,000

www.coindesk.com/business/2024/10/22/bitcoin-exchange-river-financial-allowing-users-to-earn-btc-interest-on-cash-deposits

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Challenging ECB's Bitcoin Critique: a Critical Rebuttal

Our paper critiques the recent working paper by Bindseil and Schaff (2024), which presents a negative assessment of Bitcoin’s long-term viability, framing it as a speculative asset with limited intrinsic value and significant risks.

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Other Noteworthy News

📱Venmo Users Can Now Purchase Bitcoin Through MoonPay Integration

🚗Tesla likely still owns $780M in Bitcoin despite recent shuffle: Arkham

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Recommended Articles

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El Salvador Survey Shows Bitcoin’s Lindy Effect in Action

Slowly but surely, El Salvador is on its way to mass Bitcoin adoption.

Learn how bitcoin is being adopted and used in El Salvador. It shares recent survey results showing that about 7.5% of Salvadorans are using bitcoin for transactions.

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Bitaxe And The Open-Source Bitcoin Mining Movement

Bitaxe founder Skot not only created the first ever open-source ASIC-based Bitcoin miner, but he’s inspired over 4,000 others to contribute to open-source Bitcoin mining projects.

This article explores Bitaxe, an open-source initiative aimed at transforming bitcoin mining. It highlights the journey of the project's founder, Skot, and the creation of Bitaxe, the first open-source, ASIC-based bitcoin mining machine.

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Recommended Podcasts & Videos

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Which Businesses Are Buying BTC & Why: Tales From +100 Onboardings w/ Julian Liniger, Grafton Clark

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Business Bitcoin Adoption w/ Sam Wouters - River

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Fascinating Reason Why Bitcoin Is the ONLY Real Money | Jack Mallers

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Chart of the Week

This chart shows the total number of Bitcoin Lightning nodes.

The Lightning Network is a Layer 2 solution for Bitcoin, designed to enable fast and low-cost transactions by processing them off the main blockchain. It opens payment channels between parties, allowing instant micropayments without broadcasting each transaction on the bitcoin blockchain until the channel is closed. It’s an innovative application of bitcoin that enables everyday purchases, offering instant payments, scalability, and minimal fees.

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“Bitcoin is like early electricity. Raw, dangerous, seems very volatile and hard to use. With time it'll start to feel safer, easier and normal. Like electricity it will inspire and power new unimaginable industries. And one day we’ll wonder how did we live without it?”

– Obi-Wan Kenobit

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