Banadi Treasury, the only company on the Spanish stock market operating on the Bitcoin (BTC) financial model, is on the verge of financial collapse.
A year after shifting its focus from coffee to Bitcoin accumulation, the company entered what is known as a “death spiral.” This phenomenon occurs when a company periodically issues convertible bonds to continue its operations. cause a continuous collapse in stock pricesis down 74% so far this year.
The former Banadhi Coffee transitioned into an entity specializing in holding digital assets, but was unable to generate the operating profits needed to sustain its structure. According to the company’s own data, losses recorded in 2025 amounted to 6.7 million euros (about $7.8 million). This was double the number from the previous year.
In this context, the company currently faces a deficit of 1.4 million euros (approximately $1.58 million) in immediate payments and estimates that it will need financing of 65 million euros (approximately $73.5 million) to cover working capital and debt in the coming months.
To boost liquidity, the Alicante-based company decided to issue a large number of bonds that can be converted into shares at a 5% discount to the market price. This mechanism allowed companies such as Patblasc and Global Corporate Finance Opportunities 21 (GCFO21) to obtain securities and sell them immediately to recover the price difference. This is the practice of arbitration That puts downward pressure on prices.
The company has issued 98.1 million new shares so far this year, representing aggressive dilution for investors. The severity of the situation is also reflected in the decline in stock premiums. The company received a premium of €0.12 per share in January 2025, but in recent operations this figure has fallen to just €0.01.
Financially speaking, the company We are liquidating it to the minimum possible value to continue operating.
Banadi Treasury’s goal is to accumulate Bitcoin, but the quality of its reserves is questionable. The company declares that it owns 213 units of the digital currency, or 61% of its holdings (130.18BTC) These are blocked as collateral in front of the Spanish exchange Bit2Me.
This means that most of the assets are not immediately available to the company, but instead serve as collateral for loans that Banadi must repay in order to regain control of the funds.
For all these reasons, the current scenario presents a dilemma regarding the viability of the engine shed model in the absence of cash flows to support the debt.
As reported by CriptoNoticias, this began in June 2025 as an ambitious bet to integrate Bitcoin into the balance sheets of Spanish companies. I ended up in a debt trap. The use of financial instruments artificially keeps the company afloat, but it also seriously undermines the company’s future and investors’ confidence.
(Tag Translation) Bitcoin (BTC)
