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CARY, N.C. - Fathom Holdings Inc . (NASDAQ:FTHM), a real estate services company with a current market capitalization of $30 million and trading near its 52-week low, has announced the approval from its Board of Directors to include Bitcoin (BTC) as a significant asset within its treasury management program. According to InvestingPro data, the company appears undervalued based on its Fair Value analysis. The company, which offers a suite of services including residential brokerage, mortgage, and title services, plans to allocate up to 50% of its excess cash towards Bitcoin purchases, with an immediate strategy to buy up to $500,000 in Bitcoin or Bitcoin-related funds in the next two weeks.
This strategic move is aimed at diversifying Fathom's treasury beyond U.S. dollars and integrating Bitcoin as a future payment option within its real estate transactions. CFO Joanne Zach highlighted the increasing global capital allocations towards Bitcoin in 2024 and the acceleration of Bitcoin integration into commercial and financial strategies. CEO Marco Fregenal emphasized Fathom's innovative approach and the potential for Bitcoin to enhance efficiencies and reduce transactional costs in real estate.
The integration of My Home Group, acquired on November 4, 2024, is on track and expected to add over $110 million in revenue for the full year of 2025. Despite rising mortgage rates, Fathom estimates its fourth-quarter 2024 revenues increased by 21% to 24% over the same period the previous year, with an expected gross profit increase of 28% to 30%. InvestingPro analysis reveals the company's current gross profit margin stands at 9.03%, with 18 additional key metrics and insights available to subscribers.
The company reported an increase in agent count by 23% to approximately 14,500 as of December 31, 2024, and a 16.5% rise in brokerage transaction count for the fourth quarter compared to the previous year. Fathom anticipates leveraging its growing revenue and gross profit to achieve positive Adjusted EBITDA for the full year of 2025.
Fathom's forward-looking statements, including those regarding its Bitcoin strategy and revenue growth, are subject to risks and uncertainties. InvestingPro data shows the company maintains a current ratio of 1.55, indicating sufficient liquid assets to meet short-term obligations, though it has been quickly burning through cash according to recent financial health assessments. Get access to the comprehensive Pro Research Report for deeper insights into Fathom's financial position and growth prospects. The company's financial results are estimates based on current information and have not been audited or reviewed by its independent accounting firm, Deloitte & Touche LLP.
Further details on Fathom's Bitcoin treasury strategy will be included in its Current Report on Form 8-K, to be filed with the U.S. Securities and Exchange Commission around January 23, 2025. This article is based on a press release statement.
In other recent news, Fathom Holdings reported a 10% year-over-year decrease in Q3 2024 revenue, amounting to $83.7 million, and an adjusted EBITDA loss of $1.4 million. Despite these setbacks, the company has been proactive in implementing growth strategies, including the acquisition of My Home Group, anticipated to significantly boost future revenue. Fathom Holdings also announced significant changes to its leadership team, with Jon Gwin appointed as Chief Revenue Officer, and Samantha Giuggio promoted to President of Fathom Realty and Chief Operations Officer of Fathom Holdings.
In their new roles, Gwin and Giuggio are expected to contribute to the company's expansion efforts and revenue generation. Fathom Holdings also experienced growth in its mortgage division and Verus Title, reporting increases of 52% and 71% respectively.
These recent developments reflect Fathom Holdings' commitment to long-term growth and operational excellence. The company plans to expand its operations to all 50 states by the end of 2025, and the acquisition of My Home Group is expected to contribute approximately $100 million in annual revenue from 2025 onwards. Despite current market uncertainties, Fathom Holdings maintains a strong focus on its expansion and growth strategies.
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