By crypto.news | Created at 2024-11-22 07:58:02 | Updated at 2024-11-28 03:33:07
5 days ago
Texas-based fitness maker Interactive Strength plans to allocate $5 million in Bitcoin as part of its treasury strategy.
Interactive Strength, a maker of specialty fitness equipment, said Thursday its board has approved allocating up to $5 million in Bitcoin (BTC), subject to a cap of 25% of the company’s average daily cash holdings over the past three months.
In a Nov. 21 press release, the Austin-headquartered company said it plans to hold Bitcoin as a treasury reserve asset, saying the cryptocurrency’s “inflation-resistant characteristics may make it a reliable asset as a functional store of value.” Interactive Strength CEO Trent Ward says the move aligns with the company’s strategy as Bitcoin continues “gaining investor attention and acceptance as a major and primary asset class.”
“We believe its inflation-resistant characteristics may make it a reliable asset as a functional store of value. The recent approval of Bitcoin ETFs and increasing activity from institutional investors are compelling demonstrations of growing acceptance.”
Trent Ward
Moreover, Interactive Strength also plans to accept crypto payments, giving customers the option to purchase its fitness products with digital currencies. These payments will also be retained in Bitcoin under the same limits as the treasury reserve allocation.
Amid the news, Interactive Strength shares soared 11.4%, per data from Nasdaq.
The move aligns with a growing trend among public companies incorporating Bitcoin into their financial strategies. Artificial intelligence firm Genius Group recently also announced $4 million in BTC purchases, raising its holdings to 153 BTC as part of its “Bitcoin-first” strategy to allocate 90% or more of its reserves to the cryptocurrency.
Other companies, including MicroStrategy and Nasdaq-listed Acurx, have also expanded their Bitcoin holdings to capitalize on its role as a hedge against inflation and a store of value supporting technological innovation.
