Méliuz has announced the allocation of 10% of its cash reserves to bitcoin, investing $4.1 million to acquire 45.72 bitcoins. The company aims to achieve long-term returns through this strategy and has formed a Bitcoin Strategic Committee. Chairman Israel Salmen highlighted bitcoin’s potential as a long-term store of value, hoping this decision revives investor interest amid a declining stock price.
Méliuz, a Brazilian fintech company, announced the allocation of 10% of its cash reserves into bitcoin, becoming the first publicly listed firm in Brazil to implement a bitcoin treasury strategy. The company invested $4.1 million to acquire 45.72 bitcoins at an average price of $90,926 per coin, a decision approved by its board of directors to enhance treasury management.
In its statement, Méliuz indicated that the bitcoin allocation aims to secure “long-term returns” from this investment. Additionally, the establishment of a Bitcoin Strategic Committee was announced, which will explore further expansion of this strategy with a focus on positioning bitcoin as a primary treasury asset.
Méliuz Chairman, Israel Salmen, commented on the new strategy, seeing bitcoin as an “intelligent alternative” to traditional cash reserves, emphasizing its potential as a long-term store of value. This acquisition places Méliuz alongside U.S. firms, such as MicroStrategy, known for substantial bitcoin holdings, with Méliuz being the first in Brazil.
As a provider of cashback and financial services to over 30 million users, Méliuz has faced a significant decline in its market value, dropping from near $6 billion in 2021 to approximately $270 million currently. Salmen noted that the company’s low trading volume has impacted its visibility in public markets, and he expresses hopes that the bitcoin venture may rekindle investor interest.
The cryptocurrency sector in Brazil is experiencing rapid growth, with over $200 billion traded last year. Méliuz is counting on its bitcoin treasury allocation to achieve higher returns than Brazil’s current benchmark interest rate of 13.75%.
Méliuz has made a pioneering move by allocating 10% of its cash reserves to bitcoin, a strategy aimed at achieving long-term financial returns. The establishment of a Bitcoin Strategic Committee signifies its commitment to expanding this approach further. Amidst challenges in its stock performance, Méliuz hopes that this innovative strategy will attract renewed investor interest in its operations amidst Brazil’s expanding cryptocurrency market.
Original Source: bitcoinmagazine.com
