Summary:
Fathom Holdings integrates Bitcoin (BTC) into its treasury management program.
Up to 50% of excess cash will be allocated to Bitcoin purchases.
The company plans to invest up to $500,000 in Bitcoin within two weeks.
Joanne Zach, CFO, emphasizes Bitcoin's role as a decentralized store of value.
CEO Marco Fregenal highlights the integration of Bitcoin as a means to drive efficiencies in real estate transactions.
Fathom Holdings, Inc. (Nasdaq: FTHM), a technology-driven real estate services platform, has taken a significant step by incorporating Bitcoin (BTC) into its treasury management strategy. This move aligns with the company's long-term goal to facilitate Bitcoin payments for its agents and customers.
Strategic Allocation of Cash
Fathom has approved the allocation of up to 50% of its excess cash, based on six-month operating expenses, towards Bitcoin purchases. The company plans to invest up to $500,000 in Bitcoin or Bitcoin exchange-traded funds within the next two weeks.
Diversifying Treasury Holdings
This initiative is aimed at diversifying Fathom's treasury, which previously consisted solely of U.S. dollars. The CFO, Joanne Zach, highlighted the growing acceptance of Bitcoin as a decentralized store of value and its increasing demand as an alternative digital currency. She noted that integrating Bitcoin into financial strategies positions Fathom as a leader in digital currency transactions in the real estate sector.
Innovation in Real Estate Transactions
CEO Marco Fregenal emphasized Fathom's commitment to innovation in the digital economy, stating that the company aims to drive efficiencies in real estate transactions through its software platform, intelliAgent. The integration of Bitcoin is expected to streamline processes and reduce costs, catering to the rising demand for digital currency solutions from all stakeholders in the real estate ecosystem.
Upcoming Financial Reporting
Further details about Fathom's Bitcoin treasury strategy will be disclosed in the upcoming Current Report on Form 8-K, scheduled for filing with the U.S. Securities and Exchange Commission around January 23, 2025.
Business Update
Fathom Holdings recently acquired My Home Group, significantly expanding its national presence and estimating an addition of $110 million in revenue for 2025. Despite challenges from rising mortgage rates, Fathom estimates fourth-quarter revenues between $89.7 million to $91.7 million, reflecting a 7% to 10% increase from the previous quarter and a 21% to 24% increase year-over-year. The company also reported a projected GAAP net loss of $7.3 million to $7.4 million for the same period.
Growth in Agent Network
Fathom's agent count surged by 23%, reaching approximately 14,500 as of December 31, 2024. The company is focused on leveraging its growing revenue to achieve positive Adjusted EBITDA in 2025.
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