Heritage Distilling, a Washington-based craft spirits producer, has announced plans to begin accepting Bitcoin as payment and hold the cryptocurrency as a treasury asset. This move makes Heritage Distilling the first publicly traded spirits company to incorporate Bitcoin into its business model. The company announced on January 10 that it will start accepting Bitcoin for its products and services via its e-commerce platform.
The new policy specifies that Heritage is prepared to accept Bitcoin even if the price fluctuates, highlighting the potential benefits of attracting a new customer base and the possibility of appreciation in Bitcoin’s value. “The benefits of attracting a new set of buyers, consumers, and fans, along with the margin cushion the Company can create, coupled with the potential to see Bitcoin increase in value, more than offsets the risk of loss,” the company stated in its policy document. Heritage Distilling’s website confirmed that Bitcoin will be accepted for online purchases soon.
This decision follows the establishment of its Technology and Cryptocurrency Committee, chaired by Matt Swann, a former chief technology officer at Nubank. Swann was appointed to Heritage’s Board of Directors effective January 6. This move comes amid financial challenges for Heritage Distilling.
The latest earnings report reveals $1.76 million in revenue and a $3.43 million net loss for the third quarter of 2024.
Heritage Distilling embraces Bitcoin payment
Matthew Sigel, VanEck’s head of digital assets research, has expressed concerns about the company’s financial situation, noting the significant losses relative to revenue.
The craft spirits market in the United States is growing, with 3,069 active distillers reported as of August 2024, an 11.5% increase from the previous year. According to the American Craft Spirits Association, craft spirits now account for 4.6% of the total US spirits market by volume and 7.5% by value, a slight dip from previous figures. Heritage Distilling’s move aligns with a broader trend of corporate adoption of Bitcoin as a treasury asset.
MicroStrategy, the largest corporate Bitcoin holder, first acquired Bitcoin in 2020 to deliver higher returns for shareholders and hedge against inflation. As of January 2025, MicroStrategy holds 1,070 BTC. This trend has influenced smaller companies to adopt similar strategies.
Recently, Cosmos Health and Acurx Pharmaceuticals announced plans to include Bitcoin in their treasury reserves. Worksport, a clean energy solutions manufacturer, also approved a plan to allocate excess operational cash to Bitcoin and XRP. As more companies explore cryptocurrency as a strategic asset, Heritage Distilling’s decision marks a notable development in the integration of traditional industries with digital assets.
