In a surprising announcement that many financial analysts are still struggling to come to terms with, the CEO of Everbowl said that the company has converted its cash to bitcoins to help stem the effects of inflation through the adoption of the BTC standard.
California-based superfood chain, Everbowl has announced that it is ramping up its operation to align with the realities of the advantages that Bitcoin offers.
According to the company’s founder and chief executive office, Jeff Fenster, the craft superfood chain is converting all reserved cash to BTC as it moves to operate based on the standard of the digital asset.
Decision Taken After Due Consultations
Fenster stated that the decision to move to the Bitcoin standard was not taken off the cuffs, adding that it was reached after extensive consultations with the company’s advisors who have made contributions on how the company is going to be run going forward.
He maintained that is his responsibility to ensure that the company took advantage of existing opportunities while avoiding pitfalls that could result in losses, citing the high inflation rate that has affected the USD.
Despite his assertion that the company has done its homework before taking this step, some financial analysts insist that their P/L would get their accountants scratching their heads.
As one of the earliest companies to adopt BTC as its financial standard, it is not yet clear what the reaction of the company would be if there is a massive drop in the value of the asset. Would they panic and sell or stick to their guns? These are some of the questions that skeptics have asked.
Standard accounting practice in the US demands that when the price of the Bitcoin falls, it has to be marked down by the company as an impairment loss, but they wouldn’t need to mark it up if the price of BTC rises.
A Hedge Against Inflation
The company is also looking at the possibility of paying employees in bitcoins. This, however, would be subject to personal preferences of the staff.
Even though Everbowl did not disclose the cash in hand that the company had converted to BTC, the CEO alluded to the fact that the decision was part of an ongoing effort to stem the tide of an unsustainable rate of losses incurred by sticking with fiat.