A UK-based online retailer of carpets and floor coverings bought Bitcoin (BTC) and enter it in the balance sheet in feet Tesla, Microstrategy and The real Bedford.
Paul Brewster, CEO of Flooring Hut, explained in an interview with Cointelegraph that:
“We see it. [Bitcoin] as the asset that probably has the best potential to grow our capital reserves right now.”
He explained that the group chose not to keep its cash reserves in a bank account because bitcoins could provide the greatest potential for providing returns, ultimately bringing more value to customers.
According to Companies House, the UK government agency that manages the UK company register, Flooring Hut’s 2023 accounts showed cash reserves of £75,105, which could afford roughly 3.3 BTC at the time of writing.
Other than that, the company is Bitcoin only. Brewster explained that “Bitcoin is an asset class unto itself;” it’s similar to “digital gold.” While on a personal level, Brewster and his colleagues are interested in the broader cryptocurrency space, “we won’t be putting them on Flooring Hut’s balance sheet anytime soon.”
Flooring Hut will not hold coins with crypto companies such as Coinbase or the the now defunct FTX. Instead, the company will resist the rug pulls and keep the bitcoins inside cold storageBrewster added.
This bold decision by an online retailer operating in the £2 billion carpet industry is particularly surprising as it is one of the “very few sectors where the application of technology is seriously lacking,” Brewster explained. The Financial Times, one of the UK’s most popular finance publications, took a quick look at Flooring Hut on their site Alphaville.
IN articleThe FT explained that the Flooring Hut news was “apparently creating the kind of publicity stunt that is a hoot for funny blogs like ours.” The article’s comments section is even more scathing, with one commenter exclaiming: “This is pure comedy!” to messages.
Brewster understands the somewhat negative portrayal of Bitcoin in the mainstream media:
“You have to realize that people draw connotations from what they read in the media. When they see the word bitcoin, they think, ‘Oh, is this company legit?'”
But UK businesses are looking for innovative ways to invest their capital as cash left in the bank depreciates below its high value inflation. The The United Kingdom and its currency, the pound, are suffering far more acutely than the European Union. As Brewster explains, running a business in 2023 and in such challenging economic conditions means being “progressive.”
“We’re going to reinvest that back into the company, which then leads to greater value for money for our customers, giving us a competitive edge over our competitors.”
The company is heading down the path of the Bitcoin Standard: The Bitcoin Standard building a business with bitcoin in mind. Next, the group will explore the implementation of Bitcoin Lightning Network payments, which will complement its MasterCard, Visa and Paypal online payment options.
Paying bitcoins is small but a growing trend in the UKespecially as Lightning Network offers lower fees than existing payment providers.
Related: Bitcoin Block 800,000 Mined — What’s Next?
The price of Bitcoin will rise by more than 60% in 2023 in British pounds sterling, starting on January 1st at £13,700. However, Bitcoin remains volatile. The price corrected by 2% today while some traders are predicting the price soon dropped to $19,000.
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