Many corporations have pivoted their business model towards Bitcoin, as cryptocurrencies continues to become more mainstream as both a medium of exchange and an asset class and of which one of such examples is Tesla.
More than $1.5 billion worth of Bitcoin was acquired on the balance sheet of the electric vehicle maker and which such step by Tesla, has paid off with roughly unrealized profit of $721 million in the whole 2020.
WeWork plans to go public through a special-purpose acquisitions company (SPAC) later this year, after a failed IPO attempt back in 2019. , The company is likely wanting to bolster and diversify its revenue stream and business model, though with its valuation under scrutiny
It’s imperative to consider that despite $3.2 billion in revenue, WeWork has continued to burn through its cash reserves. The company reported a loss of $3.5 billion in 2019 and a slightly lower $3.2 billion in 2020. With the coronavirus pandemic largely destroying what was left of the business, its numbers will likely not improve anytime soon.
So will a high conviction bet on an extremely volatile asset class pay off for the startup? Potentially, but surely not enough to offset its wildly unprofitable business model. Still, incorporating a crypto payment system can only be a positive by attracting new potential clients.