The online carpet and flooring retailer, Flooring Hut, based in the United Kingdom, has made a bold move by purchasing Bitcoin and adding it to its balance sheet. Following the lead of companies like Tesla, MicroStrategy, and Real Bedford, Flooring Hut sees Bitcoin as an asset with significant growth potential for its capital reserves.
The decision to invest in Bitcoin came after considering alternatives to keeping cash reserves in a bank account, with the belief that Bitcoin offers better potential returns, ultimately benefiting the company’s customers. Flooring Hut’s accounts from 2023 revealed cash reserves of £75,105, which, at the time, could buy approximately 3.3 BTC.
The company has chosen to be Bitcoin-only and views it as an asset class of its own, akin to “digital gold.” However, the company will not rely on crypto companies for custody but will store the Bitcoin in cold storage to protect against rug pulls.
Flooring Hut’s move into Bitcoin is particularly noteworthy in an industry like carpeting, where technology adoption has been limited. While this decision has garnered attention and has been seen as a publicity stunt by some, it reflects the company’s desire to be progressive in managing its business amid challenging economic conditions.
The retailer is embracing the idea of a Bitcoin standard and plans to explore Bitcoin Lightning Network payments as an addition to its existing payment options. Paying with Bitcoin is gradually gaining popularity in the UK, especially with the Lightning Network offering lower fees than traditional payment providers.
Despite Bitcoin’s 60% increase in price in 2023 when denominated in British pounds, it remains a volatile asset. Traders predict potential price corrections, with some anticipating a drop to $19,000 in the near term.