Buying One Million US Companies in Exchange for Bitcoin: A Big Gamble Under the Retirement Wave

According to Woofun AI, an emerging holding company called Orange Juice Holdings Inc., is trying to build a unique Bitcoin reserve system by acquiring small to medium businesses in the US. The core vision was established by Jeff Booth, Lyn Alden, Nico Lechuga, Andi Pitt, and Adrian Steckel. Ruben Zweiban is responsible for day-to-day operations, while Mexican billionaire Ricardo Sali Nas, on the other hand, injects capital as a core investor.

The underlying logic of this business model stems from the severe succession crisis faced by American SMEs. According to a study by Project Equity and the Harvard Business School, there are about 2.9 million businesses in the US owned by people aged 55 and over. These entities support the employment of 32.1 million workers, and the annual revenue scale is as high as 6.5 trillion US dollars.

However, the Exit Planning Institute's data reveals a harsh reality: only 20% to 30% of businesses ready to sell successfully find a buyer. In response to this huge market gap, Orange Juice is targeting businesses with an annual cash flow of between $1 million and $10 million, and plans to hold these assets permanently.

According to data compiled by Woofun AI, the Connecticut-based permanent capital holding company has raised $40 million specifically to execute the acquisition plan and establish a Bitcoin reserve.

The closed-loop design of this model is extremely complex and aims to open up a path of value transformation from the private company level to the open market. In the transaction structure, sellers (such as retired plumbing company owners or regional manufacturers) will receive part of the cash and Orange Juice shares in exchange, and the continuous cash flow generated by the company will be used to support subsequent acquisitions and purchases of Bitcoin. The company plans to complete initial acquisitions through private equity before listing, and use more liquid stocks as a means of payment for large-scale acquisitions after public listing is achieved.

However, business owners receiving stock compensation actually bear risks comparable to the operation of the business itself, because current shareholders' rights are only at the level of private companies, and future public listing is still a goal that needs to be worked hard to achieve, not an established fact. The entire process relies on first acquiring companies that generate cash flow, then reserving the cash flow for Bitcoin purchases and further expansion, and ultimately releasing the value of shares through listing.

Although this model tries to avoid the financial pressure of traditional reserve bank companies through cash flow generated by operating companies, its ultimate success or failure still depends on a game of multiple variables. If the price of Bitcoin falls, or if the acquired company does not operate well, or if the open market is unwilling to overvalue it at the time of listing, the attractiveness of stocks in the hands of shareholders will shrink drastically. Although Orange Juice has a rare source of cash flow, the value of its shares used as a means of payment for acquisitions is still subject to current open market valuation pressures. If the operating performance is good and the listing valuation is ideal, business owners will be more willing to accept rights linked to Bitcoin, thereby driving a virtuous cycle of equity acquisitions, cash flow purchases, and reserve fund expansion; conversely, the company may be forced to pay higher all-cash costs, which is exactly the dilemma the model is trying to avoid.

Currently, the market is watching whether business owners who are about to retire are willing to accept this new type of compensation plan, which will directly determine whether this model can work.