Equity & Debt vs. Bitcoin Reserves: Comparing Financing Strategies of Canada’s Top Companies”

Case Study 1: Traditional Financing

A) Shopify Inc.

Equity rounds: Raised CAD 122.25 million over six venture rounds from backers like Bessemer and OMERS Ventures before going public

Clay

IPO proceeds: Sold 7.7 million shares at $17 each in May 2015, netting USD 131 million to fuel international expansion and platform development

TIME

B) Canadian Tire Corporation

Medium‑term notes: Has CAD 950 million outstanding in unsecured debentures across multiple series (e.g., 6.500% due 2028, 5.610% due 2035) to finance store growth and supply‑chain upgrades

Canadian Tire Corporation

Commercial paper program: Maintains up to USD 1 billion in short‑term paper, giving flexibility to manage seasonal inventory and working‑capital needs

Canadian Tire Corporation

Case Study 2: Bitcoin Treasury Strategy

A) Hut 8 Corp.

Strategic reserve: Holds 10,264 BTC on its balance sheet (market value ≈ $847.2 million as of March 31, 2025), using Bitcoin as a non‑dilutive store of value alongside its mining operations

SEC

BTC‑backed credit facility: Doubled its Coinbase‑secured credit line to USD 130 million, using pledged Bitcoin as collateral at a fixed 9% rate to fund growth without issuing new equity

Stock Titan

B) HIVE Digital Technologies Ltd.

HODL portfolio: Increased its Bitcoin holdings to 2,604 BTC by Q2 FY2025, valuing that reserve at roughly $218 million (based on an $84,000 BTC price)

HIVE Digital Technologies

Green‑energy mining model: Funds expansion through ATM equity raises (C$96.7 million in Q2 2025) and retains mined BTC rather than selling immediately—effectively using Bitcoin as both production output and investment

Stock Titan

Key Takeaways for SMB Owners

Traditional methods (equity, debt, commercial paper) remain reliable for managing growth, but funds leave your balance sheet as interest or dilution.

Bitcoin treasury strategies allow companies to hedge inflation and potentially amplify returns—though they introduce volatility and custodial considerations.

Hybrid approaches (e.g., BTC‑backed credit lines) can unlock non‑dilutive capital while maintaining upside exposure to Bitcoin’s long‑term appreciation.

Whether you stick with conventional banking and capital markets or explore digital‑asset strategies, aligning your financing approach with your risk tolerance and growth plans is critical—especially as Canada’s financial ecosystem evolves.