In a latest development, Heritage Distilling Holding Company, a leading craft distiller of innovative premium brands, has done so announced the adoption of a Bitcoin Treasury policy.
This policy is part of a broader corporate sales and treasury diversification strategy that will enable the company to lead the craft spirits sector in accepting Bitcoin as payment for products through its e-commerce platform.
The company will also acquire and hold Bitcoin as a strategic asset. This move follows the creation of a new committee focused on technology and cryptocurrency, chaired by Matt Swann. Notably, this makes Heritage the first publicly traded spirits company to integrate Bitcoin into its business model.
A cushion against BTC volatility
Heritage Distilling believes that the lower production costs compared to retail prices provide a buffer against Bitcoin price fluctuations. This allows the company to accept Bitcoin as payment while minimizing risk, unlike traditional investors who purchase Bitcoin with fiat money.
It explained that since the cost of producing goods is lower than their retail value, the company has a built-in margin that protects it from Bitcoin price fluctuations. This margin, combined with the potential for Bitcoin to increase in value, outweighs the risk of Bitcoin’s price falling.
“The benefits of attracting a new group of buyers, consumers and fans, along with the margin cushion the company can create, coupled with the potential to see bitcoin increase in value, more than offset the risk of loss as the price of bitcoin would decline. at a certain time or over a certain period of time,” the company’s policy statement said.
With the approval of the Bitcoin Policy Statement, the Company’s Technology and Cryptocurrency Committee will now create a formal Bitcoin Treasury Policy for approval by the Board of Directors, allowing the Company to begin accepting, acquiring, holding and using Bitcoin in its daily activities, including as a means of payment for its customers and as a means of payment for its suppliers.
Financial challenges
Heritage Distilling’s move comes amid financial challenges, as its third-quarter 2024 earnings report revealed revenue of $1.76 million and a net loss of $3.43 million.
VanEck’s head of digital asset research, Matthew Sigel, noted concerns about Heritage Distilling’s financial situation in an after noting that Heritage Distilling (CASK) lost $3 million on $2 million in revenue last quarter, so “it remains to be seen how much BTC they could actually acquire if there wasn’t a turnaround in profitability.”
