Méliuz has officially adopted a bitcoin treasury strategy by allocating 10% of its cash reserves into bitcoin, amounting to $4.1 million for 45.72 coins. This initiative aims for long-term returns and is complemented by the establishment of a Bitcoin Strategic Committee. The move is expected to renew investor interest in the company amidst declining stock valuation.
Brazilian fintech company Méliuz recently announced its groundbreaking decision to allocate 10% of its cash reserves into bitcoin, positioning itself as the first publicly traded firm in Brazil to adopt a bitcoin treasury strategy. This initiative sees an investment of $4.1 million, acquiring 45.72 bitcoins at an average price of $90,926 per coin, thus representing approximately 10% of Méliuz’s total cash holdings as sanctioned by its board of directors.
In a formal statement, Méliuz articulated that this bitcoin allocation aims to achieve “long-term returns” as a component of its treasury management strategy. Furthermore, the company has established a Bitcoin Strategic Committee tasked with exploring the potential expansion of this strategy and transitioning bitcoin into a primary treasury asset.
Méliuz Chairman Israel Salmen commented on the strategic initiative, highlighting that the decision to invest in bitcoin offers an “intelligent alternative” to traditional cash reserves. He stated, “We see bitcoin as a long-term store of value,” reinforcing their perspective on the cryptocurrency’s market potential.
The $4.1 million bitcoin purchase positions Méliuz as a pioneer among publicly listed Brazilian companies, mirroring strategies previously embraced by U.S. firms such as MicroStrategy, which holds a significant quantity of bitcoins. Méliuz serves over 30 million users in Brazil with its cashback and financial services offerings, although its stock valuation has seen a drastic decline from approximately $6 billion in 2021, to about $270 million today.
Salmen noted that low trading volumes render Méliuz shares seemingly “irrelevant” within public markets, and he expressed hope that this innovative bitcoin strategy will rekindle investor interest. The Brazilian bitcoin and crypto landscape has shown remarkable growth, with trading values exceeding $200 billion last year. Méliuz anticipates its bitcoin treasury allocation will result in superior long-term returns compared to Brazil’s current benchmark interest rate of 13.75%.
Méliuz’s adoption of a bitcoin treasury strategy marks a significant milestone for publicly traded companies in Brazil, reflecting innovative approaches to treasury management. By investing 10% of its cash reserves into bitcoin, the company seeks advantageous long-term returns while positioning itself favorably in the evolving cryptocurrency market. This strategic decision aims to enhance market relevance and investor interest, amidst a backdrop of substantial growth in Brazil’s crypto sector.
Original Source: bitcoinmagazine.com
