The hotel and hospitality industry is the hardest hit sector in the Covid-19 pandemic-induced lockdowns. Several businesses were wiped out and shut shutters as their profits dwindled and struggled to make ends meet. A Canadian restaurant chain had announced in August 2020, that they’re converting their cash reserves to Bitcoin in an effort to save their business from the pandemic.
Tahinis Restaurants, based in Ontario that serves Middle Eastern food, decided to convert the company’s savings to BTC. The reason they said to convert cash to BTC was that it’s ”a much better alternative to saving cash.” In August 2020, the price of Bitcoin was roughly around $12,000.
Fast-forward to today, it was the best decision the restaurant chain ever made as they sit at a 350% profit. Bitcoin is trading at a comfortable position of $42,085 and the restaurant made massive gains in less than two years.
“We made the move to the corporate balance sheet on a Bitcoin standard back in August of 2020. Since then, we’re up more than 300% on our initial investment. It’s really done its job of protecting us against inflation and it worked as we intended it to,” said restaurant owners Aly and Omar Hamam to Toronto Star.
The owners confirmed they keep only six months’ worth of working capital in cash and the rest goes to Bitcoin. ”We keep a working capital for about three-six months in cash, and then the rest all goes into Bitcoin. So, whenever we have an expansion, we’re not forced to sell our Bitcoin to fund that expansion. We try to operate conservatively, where we never have to sell Bitcoin and we just keep accumulating on our treasury.”
“Bitcoin is hope for both big and small businesses alike,” tweeted Tahinis Restaurants yesterday.
Bitcoin Price Movements
BTC had a phenomenal run in 2021 and touched an all-time high of $69,000 in November 2021. However, BTC failed to have a great start in 2022 and dipped in the indices dragging other coins down with it. The leading crypto is now mostly trading sideways as the global financial conditions is not in its favor.
The U.S inflation rate climbed 7% in 2021. despite rampant job losses and unemployment around the world. The recovery towards a stable financial market might take years as the virus presence is seeing no end in sight.
At the time of publishing, Bitcoin was trading at $42,417.56 and is up +0.8% in the 24-hours day trade.