The struggling coffee chain hopes to reinvigorate its stock price by pivoting to a Bitcoin-first strategy.

Bitcoin (BTC) is becoming increasingly attractive to companies looking to revitalize their businesses. One such company is Spanish coffee chain Vanadi, which on Wednesday, announced plans to invest $1.1 billion in Bitcoin.

Vanadi Coffee SA Board Chairman Salvador Martí stated that the publicly traded company would completely reorient its strategy from coffee to Bitcoin. Martí plans to seek board approval at the next meeting, scheduled for June 29.

“I ask the board for authorization to implement the Bitcoin accumulation strategy with a maximum of 1 billion euros ($1.1 billion USD) and carte blanche to negotiate one or more lines of convertible financing to finance the implementation of the strategy,” Martí stated.

The company aims to raise the funds through a public stock offering, following in the footsteps of companies like GameStop and Strategy. Notably, Vanadi has already invested approximately $500,000 to purchase 5 Bitcoins. Now, it is doubling down in a clear effort to boost its struggling share price.

Corporate Bitcoin pivots face wide criticism

Vanadi is the latest in a growing list of companies attempting to emulate Michael Saylor’s Bitcoin accumulation strategy. However, many of the firms pursuing similar pivots are already struggling in their core operations. Rather than using Bitcoin as a diversification tool, they often seek to raise capital at inflated valuations and ride the hype wave.

Since its launch in 2023, Vanadi’s share price has plummeted from its IPO level of $3.30, losing more than 90% of its value. While the Bitcoin strategy announcement sparked some short-term optimism—boosting the share price by 18.8%, the stock remains well below its IPO price. As of June 4, Vanadi Coffee SA was trading at $0.3280 per share on the Madrid Stock Exchange.