UK carpet retailer to adopt bitcoin standard

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A UK-based online carpet and flooring retailer bought Bitcoin (BTC) and put it on the balance sheet, following in the footsteps of Tesla, Microstrategy and Real Bedford.

Speaking to Cointelegraph, Flooring Hut CEO Paul Brewster explained that:

We see it [Bitcoin] as an asset that probably has the greatest potential for growth in our capital reserves at this time.

He explained that the group decided not to keep its cash reserves in a bank account because Bitcoin could offer the greatest return potential, which ultimately provides greater value to customers.

According to Companies House, the UK government agency that maintains the register of UK companies, Flooring Huts’ 2023 accounts showed cash reserves of 75,105, which at the time of writing could afford around 3.3 BTC.

Flooring Hut Treasury. Data taken from gov.uk

Moreover, the company is Bitcoin only. Brewster explained that Bitcoin is an asset class in its own right; it is akin to digital gold. While on a personal level, Brewster and his colleagues are interested in the broader cryptocurrency space, they weren’t going to put it on Flooring Hut’s balance sheet anytime soon.

Flooring Hut will not hold coins with crypto companies such as Coinbase or the defunct FTX. Instead, the company will resist rug pulls and keep Bitcoin in cold storage, Brewster added.

The bold move by the online retailer operating in the $2 billion carpet industry is particularly surprising as it is one of the “very few sectors where the application of technology is sorely lacking”, explained Brewster. The Financial Times, one of the UK’s most popular legacy financial publications, was quick to take a look at Flooring Hut on its Alphaville page.

The Financial Times mocks this decision. Source: FT.

In the article, the FT explained that Flooring Hut news is obviously engineering the kind of publicity stunt that is catnip for sneaky blogs like ours. The article comment section is even more scathing, with one commenter exclaiming, “This is pure comedy! on the news.

Brewster understands the somewhat negative portrayal of Bitcoins in mainstream media:

You just have to be aware that people draw connotations from what they read in the media. When they see the word Bitcoin, they think, Oh, is this company legit?

However, businesses in the UK are looking for innovative ways to invest their capital as cash left in the bank is depreciating due to high inflation. The United Kingdom and its currency, the pound, are suffering more than the European Union. As Brewster explains, running a business in 2023 and under such tough economic conditions is to be progressive.

We will reinvest that back into the business, which translates into better value for our customers, giving us a competitive advantage over our competition.

The company is on the path to a bitcoin standard: that of building a business with bitcoin in mind. Next, the group will explore implementing Bitcoin Lightning Network payments to complement its MasterCard, Visa, and Paypal online payment options.

Paying with Bitcoin is a small but growing trend in the UK, especially as the Lightning Network offers lower fees than incumbent payment providers.

Related: Bitcoin block 800,000 mined What’s next?

The price per bitcoin is up over 60% in 2023 in sterling, starting on January 1 at 13,700. Nevertheless, bitcoin continues to be volatile. The price corrected 2% today as some traders predict a price drop to $19,000 in the near term.

Magazine: Peter McCormacks Real Bedford Football Club puts Bitcoin on the map

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