LQR House shifts focus to integrate crypto into business model

MIAMI BEACH - LQR House Inc. (NASDAQ:LQR), an e-commerce platform specializing in spirits and beverages, has seen its stock surge over 440% in the past week as it announced Thursday its strategic plan to incorporate cryptocurrency and blockchain technology into its long-term business model. According to InvestingPro data, the company’s market capitalization stands at $11.39 million.

The company’s new direction follows interest from Robert Leshner, a decentralized finance figure who purchased a stake in LQR House. According to the announcement, Leshner has expressed interest in seeing the company pursue a more crypto-native strategy and may provide advisory services, though he no longer seeks a controlling interest.

This development builds on the board’s previous approval to allocate a portion of the company’s treasury to Bitcoin and explore potential investment in mining infrastructure through partnerships with Bitmain and Polaris Capital.

"We’re not pivoting—we’re expanding. Our vision is to build a platform that combines the strength of e-commerce with the power of digital assets," said Sean Dollinger, CEO of LQR House, in the press release.

The company reported having 6,809,578 shares outstanding, raising over $20 million through its at-the-market offering, and carrying zero debt as of July 16. InvestingPro analysis confirms the company’s strong liquidity position with a current ratio of 3.68, though it faces challenges with negative gross margins of -8.31%.

LQR House operates cwspirits.com, an alcohol marketplace that delivers spirits, wines, and champagnes across the United States, while also functioning as a marketing agency for the alcohol industry.

The company noted that any investments in digital assets and related transactions are contingent upon execution of definitive agreements, corporate approvals, and regulatory clearances, with no assurance that potential transactions with Leshner will be finalized.

This announcement is based on a company press release statement. While the stock has shown significant volatility, InvestingPro analysis suggests the company is currently trading below its Fair Value. Subscribers can access 15 additional ProTips and comprehensive financial metrics to better understand LQR House’s growth potential and risks.

In other recent news, LQR House Inc. is facing legal challenges as it has been named in a lawsuit filed by Kingbird Ventures, LLC. The lawsuit seeks to freeze the company’s assets and appoint a receiver, alleging breach of fiduciary duties and other claims. LQR House has stated it has not yet been served with the complaint and plans to defend itself, citing numerous factual inaccuracies in the allegations. Meanwhile, the company is exploring a new strategy in cryptocurrency by considering investment in Bitmain mining machines for Bitcoin mining. This approach is part of its broader cryptocurrency treasury strategy, aiming to generate Bitcoin directly rather than purchasing it. Additionally, LQR House announced that Ontario-based Of The Earth Distribution Corp. has placed its third order for 176 cases of SWOL Tequila. The order comes with a refreshed case format and enhanced bottle design to boost visibility in the Canadian market. These developments highlight LQR House’s ongoing business activities and strategic initiatives amid its legal proceedings.

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