Steak 'n Shake's Significant Bitcoin Investment
Steak ‘n Shake, the fast-food chain, has made a substantial purchase of Bitcoin (BTC), marking its first allocation to its treasury reserve. The company acquired $10 million worth of Bitcoin, adding it to its Strategic Bitcoin Reserve.
Lightning Network Integration Fuels Growth and Bitcoin Holdings
This strategic move comes eight months after Steak 'n Shake enabled Lightning Network payments across all its U.S. locations. This integration allows customers to pay for purchases using Bitcoin, a feature that has proven beneficial for the burger chain.
Steak 'n Shake reported that the publicity surrounding Bitcoin payments significantly boosted sales figures. Notably, the company has chosen to hold all received Bitcoin long-term on its balance sheet as a treasury asset, rather than converting it to fiat currency. As stated by Steak ‘n Shake, "All Bitcoin sales go into our Strategic Bitcoin Reserve," indicating their view of Bitcoin as a store of value, not just a payment method.
The $10 million BTC purchase represents the "notional value" of the asset, signifying Steak 'n Shake's willingness to allocate significant capital. This aligns the company with Bitcoin-focused investors and consumers. Steak 'n Shake claims that sales have climbed by 15% since adopting this model, leveraging Bitcoin as a catalyst for rapid growth.
The fast-food chain attributes the increased sales to better food quality attracting more customers. This sales growth, in turn, supports their Bitcoin accumulation strategy and strengthens their balance sheet. It is anticipated that Steak ‘n Shake will continue to attract patronage from Bitcoin-aligned customers due to their distinctive business model.
Growing Adoption of Lightning Network Payments
Steak 'n Shake is not the only entity embracing the Lightning Network for payments. SoFi Technologies has also integrated the Bitcoin Lightning Network as part of its push for digital payment options. This decision stems from the demand by millions of users seeking faster and cheaper ways to send money internationally.
The SoFi app enables users to send money directly to relatives abroad.