Key Points
- Interactive Strength, a fitness equipment manufacturer, is planning to allocate $5 million in Bitcoin as part of its treasury strategy.
- The company also plans to accept cryptocurrency payments and retain these in Bitcoin.
Interactive Strength, a Texas-based fitness equipment manufacturer, recently announced that its board has given approval to allocate up to $5 million in Bitcoin (BTC). This decision is subject to a cap of 25% of the company’s average daily cash holdings over the past three months.
Bitcoin as a Treasury Reserve Asset
According to a press release, the Austin-based company intends to hold Bitcoin as a treasury reserve asset. The company believes that Bitcoin’s inflation-resistant characteristics could make it a reliable asset and a functional store of value. Interactive Strength’s CEO, Trent Ward, stated that this move aligns with the company’s strategy as Bitcoin continues to gain attention and acceptance as a major and primary asset class.
Ward further expressed his belief in Bitcoin’s inflation-resistant characteristics and its potential as a reliable asset. He pointed to the recent approval of Bitcoin ETFs and increasing activity from institutional investors as evidence of Bitcoin’s growing acceptance.
Accepting Crypto Payments
Interactive Strength also intends to accept payments in cryptocurrency. Customers will have the option to purchase fitness products using digital currencies. The company plans to retain these payments in Bitcoin, subject to the same limitations as the treasury reserve allocation.
Following the announcement, Interactive Strength’s shares witnessed an 11.4% increase, according to data from Nasdaq.
This move by Interactive Strength is consistent with a growing trend among public companies to incorporate Bitcoin into their financial strategies. For instance, artificial intelligence firm Genius Group recently announced $4 million in BTC purchases, raising its holdings to 153 BTC as part of its “Bitcoin-first” strategy.
Other corporations, such as MicroStrategy and Nasdaq-listed Acurx, have also increased their Bitcoin holdings. They aim to leverage Bitcoin’s role as a hedge against inflation and a store of value supporting technological innovation.