UK-based online carpet and flooring retailer, Flooring Hut, has joined the growing list of companies that have invested in Bitcoin. The company’s CEO, Paul Brewster, stated that they view Bitcoin as an asset with the potential for significant growth in their capital reserves. Rather than keeping their cash reserves in a bank account, Flooring Hut believes that Bitcoin offers the best potential for returns, ultimately delivering greater value for their customers.
According to the UK government agency, Companies House, Flooring Hut’s 2023 accounts show cash reserves of £75,105. At the current time, this amount could afford approximately 3.3 BTC. Brewster describes Bitcoin as an asset class in its own right, comparing it to “digital gold.” However, he clarified that while he and his colleagues have personal interests in the wider cryptocurrency space, they have no immediate plans to include other cryptocurrencies on the company’s balance sheet.
Flooring Hut has made the bold decision to store their Bitcoin in cold storage rather than with crypto exchanges. This move aims to minimize the risk of rug pulls and ensure the security of their investment. While this decision may seem surprising, it aligns with Flooring Hut’s belief in the potential of Bitcoin and its commitment to innovation in an industry that has historically lagged behind in terms of technology adoption.
Despite the company’s enthusiasm for Bitcoin, some critics, including the Financial Times, have questioned the move and labeled it a mere publicity stunt. Brewster acknowledges that there is still skepticism and negativity surrounding Bitcoin in the mainstream media. However, he believes that businesses in the UK are seeking innovative ways to invest their capital due to the depreciating value of cash reserves caused by high inflation. Managing a business in such economic conditions requires a progressive mindset, according to Brewster.
Flooring Hut aims to align its entire business strategy with Bitcoin by exploring the implementation of Bitcoin Lightning Network payments. This would complement the company’s existing payment options, including Mastercard, Visa, and Paypal. The trend of paying with Bitcoin is growing in the UK, especially as the Lightning Network offers lower fees compared to traditional payment providers.
In terms of Bitcoin’s performance, its price has increased by over 60% in 2023 in British Pounds Sterling, starting the year at £13,700. However, Bitcoin remains a volatile asset, as demonstrated by a 2% price correction today. Some traders even predict a significant price drop to $19,000 in the near future.
Flooring Hut’s decision to invest in Bitcoin showcases the increasing acceptance and adoption of cryptocurrency among businesses in different industries. As more companies recognize the potential benefits and value of Bitcoin, it is likely that others will follow suit.