Spanish Coffee Chain Vanadi's Bitcoin Treasury Strategy Falls into Death Spiral After One Year
Spanish coffee chain Vanadi has fallen into a severe crisis one year after adopting a Bitcoin treasury model.
The company currently holds 213 BTC but recorded a loss of $7.8 million in 2025. To maintain operations, it issued a large amount of convertible bonds at a 5% discount to market price, leading to a 74% drop in stock price this year, with an additional issuance of 98.1 million shares, severely diluting shareholders.
Vanadi faces a €1.4 million urgent payment gap and needs an additional €65 million in financing over the next few months. Of this, 61% (about 130 BTC) is locked at Bit2Me exchange as collateral and cannot be freely used.
Source: Public Information
ABAB AI Insight
Vanadi followed the trend of companies like MicroStrategy in 2025 by adopting a Bitcoin treasury strategy. This crisis continues the typical path of many traditional companies that heavily invest in BTC without stable cash flow. Although issuing high-discount convertible bonds temporarily provides liquidity, rapid dilution directly destroys stock prices and investor confidence.
In terms of capital, the company uses Bitcoin as collateral to obtain loans, but operational losses prevent it from covering debt interest, creating a death spiral of "sell shares → stock price collapse → harder financing → more BTC collateralization." Funds are shifting from the coffee business to debt extension and Bitcoin collateral cycles, with the initial hope that BTC would rise to cover losses, ultimately accelerating the collapse due to a lack of cash flow from the core business.
Similar to many small and medium-sized listed companies that followed the Bitcoin treasury trend in 2024-2025 and were forced to sell or dilute due to cash flow breakage, corporate Bitcoin reserve strategies are currently transitioning from "simple holding" to "must match stable cash flow" control.
Essentially, this represents capital concentration: the Bitcoin treasury model, without strong cash flow support, quickly transfers pricing power from company management to creditors and exchanges. The mechanism of collateral + convertible bonds amplifies volatility risk, forcing capital from high-confidence long-term holding to forced liquidation or extreme dilution, creating an industry filter where "only cash flow strong players can manage BTC reserves."
ABAB News · Cognitive Law
Bitcoin is an amplifier, not a lifeline; companies without cash flow will only die faster.
When you mortgage your assets for financing, you have already lost pricing power.
No matter how good the asset, it cannot save a company that relies on constantly diluting shareholders to survive.