Meliuz, a Brazilian fintech, announced a strategy to allocate part of its reserves to bitcoin, leading to a 25% rise in its shares. The firm aims for long-term returns and has purchased 45.72 bitcoin for about $4.1 million. Chairman Israel Salmen highlighted the importance of this strategy in enhancing financial stability and potentially becoming a leader in financial transformation.
Meliuz, a Brazilian fintech, has initiated a strategy to allocate a portion of its reserves to bitcoin. This plan could potentially position bitcoin as a primary asset within the company’s treasury. Following the announcement, Meliuz’s shares surged over 25%, reflecting strong investor interest in this innovative approach to asset management.
The firm aims to achieve long-term returns via its bitcoin investments, drawing inspiration from notable companies like Strategy and Metaplanet. According to its recent securities filing, Meliuz is authorized to allocate up to 10% of its cash in bitcoin and has already invested in 45.72 bitcoin, valued at approximately $4.1 million.
Established in 2011, Meliuz initially provided cashback services for online purchases before diversifying into physical retail and app offerings. The company went public in late 2020 but faced a decline in stock performance due to Brazil’s rising interest rates. Presently, Meliuz boasts a net cash reserve exceeding 240 million reais ($41.72 million).
Chairman Israel Salmen commented, “Allocating a significant amount of our capital to fixed income investments may seem like a prudent strategy, but in practice we believe it represents a significant opportunity cost.” He emphasized that this new bitcoin strategy could enhance Meliuz’s financial outlook and establish the company as a leader in a global financial transformation.
Meliuz is committed to conducting an extensive analysis regarding the adoption of bitcoin as its main strategic asset. Analysts from UBS BB noted that, while novel for Brazilian firms, Meliuz’s approach is part of a wider trend of seeking alternative investments. They remarked that, “If successful, the strategy might set Meliuz apart in attracting investors interested in crypto exposure,” while also warning of potential volatility in financial results.
In summary, Meliuz’s innovative move to invest in bitcoin signifies a potential shift in its financial strategy, aimed at long-term gains and resilience against current economic challenges. With a substantial cash reserve and a focus on cryptocurrencies, Meliuz is positioning itself at the forefront of a global trend, while balancing the risks and rewards of such investments. The company seeks to cement its reputation as a pioneer in adapting to evolving financial landscapes.
Original Source: www.usnews.com
