BrewDog faces backlash over plans to 'tokenize' investor's equity

BrewDog co-founder James Watt has responded to a backlash from investors over plans to convert their equity in the company into digital blockchain assets.

In a tweet on 27 June, Watt announced the brewer was working with digital finance firm Globacap to allow the group’s investors to “tokenize” their holding in the business.

More than 210,000 people have invested in BrewDog through its ‘Equity for Punks’ programme since 2009.

Watt said: “We will, of course, consult with our community before we make any decisions here and this would be optional.

“And any blockchain we work with would have to have really solid sustainability credentials, which some do.”

The post prompted a large number of negative responses, with many people raising concerns it would involve their investment being transferred into cryptocurrency or NFTs.

One response said: “Been a Punk Investor for nearly a decade, and do not want anything to do with crypto/NFTs. If you do go down this route, I would hope there is an easy way for those of us who would (sadly) want to cash in our chips.”

Another added: “No, don’t do it, if you do wish to do this then offer to buy the shares back from the people who invested in you in 2010 & have been very very patiently putting up with all the other stuff. Bring back quality beer & pride in your company.”

Others asked for more detail and questioned what the benefit would be for investors in the company.

Watt later responded with another post following a large number of negative replies.

He added: “This is not about NFTs or crypto. This is about finding a more efficient way to maintain a shareholder register. And making it easier for [Equity for Punk investors] to realise the value of their shares.”