New Company to Permanently Hold Small Businesses and Accumulate Bitcoin, U.S. Orange Juice Established

Key Points of This Article

• A permanent holding model that accumulates Bitcoin through business revenue
• Mexican billionaire Salinas participates as an anchor investor

$40 Million Raised

On the 15th, U.S. permanent capital company Orange Juice (ORANGE JUICE HODLINGS) announced the completion of a $40 million (approximately 6.5 billion yen) fundraising. The company aims to provide an alternative for business succession by combining a Bitcoin treasury with the acquisition and permanent holding of small and medium-sized enterprises, replacing traditional private equity (PE) funds.

The company targets stable U.S. small and medium-sized enterprises with annual cash flows of $1 million to $10 million, maintaining the brands and management systems of the acquired companies. The cash generated by the business will be used for Bitcoin purchases or additional acquisitions, with plans to expand scale based on conservative leverage utilization.

Founders selling their businesses can choose to retire, continue, or transition gradually. Additionally, part of the sale proceeds can be received in the form of shares of Orange Juice, allowing them to continue participating in long-term capital gains.

Founding Team and Anchor Investor

The founding partners are primarily from the Bitcoin-focused venture capital firm Ego Death Capital. Entrepreneur and author Jeff Booth, known for his book "The Price of Tomorrow," which discusses the relationship between Bitcoin and deflationary economies, and investment strategist Lyn Alden, who analyzes Bitcoin from a macroeconomic perspective, are among the names.

Nico Lechuga, Andy Pitt, and Adrian Steckel also participate as co-founders, with Ruben Zweiban serving as the operating partner. Lechuga stated, "Building a business takes decades. I believe permanent capital will become an important alternative to PE funds."

Additionally, participating as an anchor investor is Ricardo Salinas, founder and chairman of the Mexican conglomerate Grupo Salinas. Salinas, who has over 170,000 employees in Latin America, stated, "Cash flow is the essence of a business, and we cannot expect the government to protect the value of currency. Orange Juice embodies both."

Differences from Strategy

The U.S. listed company Strategy is known as a pioneer of the Bitcoin treasury strategy. The company raises external funds through stock issuance and convertible bonds, adopting a model that accumulates treasury by directly purchasing and holding Bitcoin.

What sets Orange Juice apart is its continuous securing of funds for Bitcoin purchases from the operating cash flow of its subsidiary businesses rather than from external capital markets. While Strategy expands its Bitcoin holdings through aggressive capital raising, Orange Juice adopts a composite model of "business × Bitcoin treasury" by permanently holding small and medium-sized enterprises and accumulating Bitcoin through their business revenue. Furthermore, unlike PE funds, it does not have fund cycles or sale deadlines, which is a significant difference from traditional PE funds.

Additionally, Orange Juice plans to form an internal operating team to respond to productivity transformations driven by AI, supporting the AI transition of its subsidiary companies. In the future, it aims to conduct an initial public offering to secure liquid investment means and access to capital markets.