Recently, Lyn Alden announced the establishment of Orange Juice, a new investment firm with an initial capital of $40 million aimed at acquiring and managing small to mid-sized businesses, ensuring they transition to a Bitcoin standard.
The company intends to purchase these businesses at low prices, enhance their operations, and maintain ownership indefinitely, diverging from the typical strategy of reselling. Alden expressed that a portion of the profits from these businesses will be converted into Bitcoin, thereby creating a treasury asset for the firm.
In a blog post detailing the vision of Orange Juice, Alden stated, “Pure-play Bitcoin holding companies exist, but their cash-flowing operations tend to be small or non-existent.” She emphasized the firm's focus on building a solid and diversified cash flow base, using retained earnings to accumulate Bitcoin.
Orange Juice was co-founded by Alden, Jeff Booth, Nico Lechuga, Andi Pitt, Adrian Steckel, and Ruben Zweiban. Notably, Mexican billionaire Ricardo Salinas participated as an anchor investor. Salinas has publicly supported Bitcoin, acknowledging a significant increase in his investment allocation from 10% to 70% of his portfolio last month.
According to the announcement, the firm aims to pursue a public listing in the future, aiming to capitalize on the upcoming wave of business successions. The planning states that unlike traditional private equity, which operates under strict fund cycles and pressure to sell, Orange Juice will prioritize the long-term sustainability of its businesses.
This launch occurs at a time when Bitcoin treasury models have recently faced challenges; many firms that invested in digital assets last year experienced significant losses due to a downturn in crypto prices. Notably, Strategy, a major player in Bitcoin treasuries, saw its Nasdaq-listed stock drop nearly 80% over the past year.
This material is for informational purposes only and does not constitute financial advice.
