Companies facing difficulties, such as Goodfood Market Corp, are turning to Bitcoin investments in an effort to draw in investors and enhance the liquidity of their stock, rather than concentrating on their primary business activities. Although MicroStrategy’s approach to Bitcoin has led to significant stock increases, there are potential regulatory and tax obstacles that may complicate analogous strategies for other corporations. Firms with declining revenues and stagnant stock performance are taking a daring step by acquiring Bitcoin. Rather than concentrating on reinvesting in their main business activities, companies like Goodfood Market Corp are relying on Bitcoin to draw in investors and enhance their liquidity. Some people perceive it as a clever strategy, whereas others consider it a sign of financial distress. Many public companies are emulating Michael Saylor’s approach by utilizing corporate funds and, in some cases, debt to purchase Bitcoin. – Bloomberg (@business) February 19, 2025. Jonathan Ferrari, the CEO of Goodfood, previously led a successful meal delivery startup, but has seen his company’s stock plummet by 98% compared to its peak during the pandemic. In a bid to make a significant shift, Ferrari decided to explore Bitcoin. “Our core business is solid, but it’s not substantial enough to capture the attention of capital markets.” “I believe that by increasing our investments in our Bitcoin treasury strategy, we can enhance the liquidity of our stock and draw in more investors,” Ferrari stated, as cited by Bloomberg. Other companies are adopting a similar approach. Companies ranging from social media platforms and video game stores to coal mining businesses are investing heavily in Bitcoin, aiming to replicate the success achieved by MicroStrategy, the trailblazer of this approach.
Businesses in difficulty are looking to Bitcoin—will it help boost their stock prices?
