Simply put
- The company reports an uptick in same-store sales since accepting Bitcoin, although it hasn’t specified the exact impact on its overall revenue or profits.
- Bitcoin payments are being added to its corporate reserves, with the total reaching around 161 BTC.
- Steak ‘n Shake is utilizing its reserves not just for payouts, but also to support employee bonuses.
About nine months ago, Steak ‘n Shake made the decision to accept Bitcoin. The company claims this has resulted in a significant boost in sales.
According to them, same-store sales have “dramatically” increased. Recently, they noted that Bitcoin payments are being allocated to a strategic Bitcoin reserve, which they intend to use for employee bonuses.
“We have harnessed the transformative potential of Bitcoin alongside a business that generates cash,” said the company. This initiative had been hinted at back in May of last year when they first began accepting payments in Bitcoin.
However, they haven’t disclosed how much the Bitcoin transactions have specifically contributed to their revenue increase. Attempts to reach out to Steak ‘n Shake and its parent company, Biglari Holdings, have been made.
“This exemplifies what a digital asset treasury model should look like,” remarked Vineet Budki, CEO of Sigma Capital.
Budki emphasized that there’s a clear distinction between strategy and speculation, suggesting that companies should view Bitcoin not as a core business model but rather as a significant asset.
He further stated that traditional companies adopting Bitcoin are more likely to treat it like “digital gold” rather than embrace a crypto-centric business plan.
Last year, a limited-time offering featured a Bitcoin steak burger, which showcased the Crypto logo. A month later, it was announced that Bitcoin payments would go into this newly established Strategic Bitcoin Reserve.
Last month, it was disclosed that the company saw a $10 million rise in Bitcoin exposure linked to its reserves, and employee bonuses were structured to include Bitcoin payments at a rate of $0.27 per hour worked, with a vesting period of two years.
Currently, Steak ‘n Shake holds around 161 BTC, equating to about $11 million, although this is approximately 26% below its average purchase price of $92,851, according to available data.
Operated by Biglari Holdings, which is publicly traded, more information regarding its financial performance and Bitcoin exposure may emerge in upcoming regulatory filings.
This strategy might seem unconventional, but the chain’s ongoing capital allocation and employee compensation plan indicate a deeper operational commitment rather than just a fleeting marketing tactic.
“The more companies embrace freedom and sovereignty, the better positioning we create for the future,” noted Samuel Patt, co-founder of op_net, a Bitcoin technology firm. He pointed out that increasing demand for Bitcoin as a payment option will require enhancing the network or improving Lightning Network infrastructure.
Patt expressed that Steak ‘n Shake stands out as an “outlier,” considering that there’s been a notable decline in Bitcoin demand for payments. Still, he believes that as larger merchants demonstrate the efficacy of Bitcoin, it could serve as a model for others and potentially rekindle demand.
