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Heritage Distilling adopts bitcoin

Washington State’s Heritage Distilling Company has become the first publicly traded distillery to accept cryptocurrency bitcoin.

bitcoin heritage distilling co
Bitcoin is accepted at more than 250 stores, including Airbnb, Burger King, and IKEA

In November, Heritage Distilling Company launched an IPO (initial public offering) on Nasdaq, offering shares at a price of US$4 per share, with the aim of raising approximately US$6.75 million.

Now, the board of directors for the craft distillery has approved the adoption of bitcoin as a form of payment on its website as part of its broader corporate sales and treasury diversification strategy.

In its Bitcoin Treasury Policy Statement, the company outlines its long-term belief in bitcoin as a strategic asset, recognising the ‘millions of consumers’ who already hold and use bitcoin as an asset and as currency on a regular basis, along with bitcoin’s rapid and growing adoption among the broader population, financial institutions and policy makers.

The policy statement notes: “As a company producing products for sale to consumers, the company also believes its risk is mitigated by the fact that it can leverage the lower cost of goods required to produce and sell such products relative to the retail value it can sell those products for to consumers. In this way, the company as a consumer product company is uniquely positioned to sell its products and services in return for bitcoin as a form of payment knowing that even if the price of bitcoin falls at any given time, the company has a built-in margin that gives it a cushion that other traditional investors acquiring bitcoin do not have if they purchased their bitcoin using fiat currency.

“The benefits of attracting a new set of buyers, consumers and fans along with the margin cushion the company can create, coupled with the potential to see bitcoin increase in value, more than offsets the risk of loss if the price of bitcoin were to fall at any one time or over a given period of time.”

Heritage Distilling Company
Heritage Distilling Company teamed up with the Tonto Apache Tribe to create a distillery and tasting room

Justin Stiefel, CEO of Heritage Distilling Company, said: “Heritage has always been an innovator and once again we are leading the way in the craft spirits space as we prepare to accept bitcoin as a form of payment for online e-commerce sales and to acquire and hold bitcoin as an asset.

“As noted in our policy statement, unlike traditional investors who purchase bitcoin with cash and are immediately subject to potential pricing volatility, as a company producing goods for sale, acceptable margins between the retail price of our products and their cost of production is expected to offset potential fluctuations in the value of bitcoin we accept as payment. This provides us considerable financial flexibility as we develop product offerings for users and enthusiasts of bitcoin.”

With the adoption of the Bitcoin Policy Statement, the company’s Technology and Cryptocurrency Committee will now craft a formal Bitcoin Treasury Policy for board approval, which would then allow the Heritage Distilling to begin accepting, acquiring, holding and using bitcoin in its daily business, including as a form of payment from its customers and as a form of payment to its vendors.

Matt Swann, chairman of the technology and cryptocurrency committee, noted: “I am excited to lead this committee as we prepare Heritage to begin accepting bitcoin as a form of payment and acquiring or holding bitcoin as a company asset.

“The growth of bitcoin is still in its early stages and the opportunity for companies to accept bitcoin as payment is substantial. Preparing to be a leader in the craft distilling space by utilising bitcoin is further proof Heritage is a trailblazer that thinks beyond its peers to reach new customers and improve their consumer journey.”

In 2023, Heritage Distilling formed the Tribal Beverage Network, described as a ‘first-of-its-kind’ partnership with Native American tribes to develop Heritage-branded distilleries, brands and tasting rooms.

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