Numerous large corporations and institutions entered the bitcoin space last year or later with substantial purchases worth billions of dollars in total. Bearing in mind that some of these names were giants like Tesla, MicroStrategy, Ruffer Investment and MassMutual, it is normal for everyone to have made news more than once.
But what about the supposed little boy? Because it is considered a highly volatile and risky asset with a little more than a decade of history, BTC does not seem like the preferred asset for smaller companies to put on their balance sheets, right?
However, this does not seem to be the case for a small pizzeria owned by a husband and wife with two restaurants in Alabama, in the United States, called Sam & Greg’s Pizzeria / Gelateria.
Greg Hathorn, the co-owner (also known as a husband), recently commented in an endorsement by Michael Saylor of the $ 170 million BTC purchase from Square, that they moved $ 200,000 off their business balance sheet to the primary cryptocurrency.
CryptoPotato contact the Hathorns to find out more about their decision, thoughts on bitcoin, exit strategy and everything in between.
Why Bitcoin, Greg?
Probably the most profound question for each (new) investor is why he or she decided to allocate funds to a particular asset – or as a popular British-American author once wrote – “it all starts with why.”
Greg shared with us that his background was in IT, despite his continued efforts as a restaurant owner, and said that cryptocurrency and blockchain technology has been in his sights for some time.
Admitting that he was late to the party with his “ah-ha moment”, he believes that “these technologies represent the smartest use of the Internet to date, creating a positive breakthrough that will shake traditional finance at its core.”
“So, why bitcoin for my business? The simple answer is that I worked hard to save money and I don’t like to see it disrespected and devalued. Nor do I appreciate politicians and central banks reducing the value of the American worker at the speed of a printer. Bitcoin solves these problems.
The simple forces of fixed supply and unlimited demand are at play, making bitcoin the obvious choice as the store of value for those who simply need a place to preserve capital, no matter the size of the business. “
350% ROI in less than a year
Greg revealed that the catalyst for that decision came in April 2020 – a defining moment for the cryptocurrency industry, as well as for the entire financial field. The explosion of COVID-19 had just been recognized as a global pandemic and the consequences spread across all financial markets, causing huge declines.
Bitcoin was not excluded as it plummeted 50% in one day to less than $ 4,000 in mid-March 2020. However, the Hathorns appear to have taken the Paul Tudor Jones III approach and entered bitcoin when the asset began its recovery .
However, BTC did not stop with a simple recovery and reached new heights in the following eleven months. It is no surprise that the Hathorns’ bitcoin investment has “increased by approximately 350% since we started investing last April”.
Greg noticed that he chose the gray scale over the “encryption exchange route because I just didn’t want to deal with maintaining a digital wallet, cold storage / hot storage, keys, etc.” He believes that the GBTC trust is among the most convenient tools for people who wish to receive BTC exposure at the moment, but believes that the potential approval of a Bitcoin ETF can be a game changer.
On the issue of their overall strategy towards bitcoin, Greg told us that he is not actively managing the cryptocurrency’s position. Instead, he prefers HODLing for now.
However, he plans to treat his “prudent” BTC investment a little differently in the future – “I will make profits on the upward path and then reinvest in future declines”.
Another small business should also consider purchasing BTC
While it is not yet a common practice among larger or smaller companies, Greg believes that every owner or executive should “at least learn about bitcoin” before making a conscious decision about whether to buy BTC as well.
“Bitcoin and cryptocurrency in general will not disappear, so it should not be ignored as just a fad that will disappear. he said.
Although he recognizes the greater volatility of the asset, Greg does not think it is risky – “or at least not more risky than investing in stocks, ETF markets or just sitting in cash”. He and his wife have invested in BTC funds that are “above and above the operating capital that remains in the business to meet ongoing cash flow needs”.
As such, it is prepared to face short-term volatility, despite the “turnaround that occurs when bitcoin sinks and consolidates”, to “capture massive long-term gains”. In addition, he feels privileged to participate as one of the first to adopt this “new Digital Monetary Network – an opportunity that I cannot pass up”.
Greg also noted that the company’s BTC investment could ultimately benefit its employees as well, as it suggests job security and potential bonuses. He said “they were thrilled” the first time he and his wife announced the purchase of bitcoin.
“They felt that if we are able to do that, the business must be doing well, which translates to job security. But more importantly, I plan to incorporate a portion of Bitcoin’s profits into our annual bonus pool, which is shared by all employees. So, so to speak, you could say that our team is invested in Bitcoin. ”- he concluded.
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