Méliuz Becomes Brazil’s First Publicly Traded Company to Adopt…

Brazilian fintech Méliuz has allocated 10% of its cash reserves, approximately $4.1 million, into bitcoin, marking it as the first publicly traded firm in Brazil to adopt a bitcoin treasury strategy. This decision aims for long-term returns while responding to declining stock prices. The company established a Bitcoin Strategic Committee to expand this strategy further.

Méliuz, a Brazilian fintech company, has become the first publicly traded firm in Brazil to implement a bitcoin treasury strategy. On Thursday, the company announced it had allocated 10% of its cash reserves, equating to $4.1 million, into bitcoin by acquiring 45.72 bitcoins at an average price of $90,926 per coin.

The decision to invest in bitcoin stems from a newly approved policy by the board of directors, aimed at fostering long-term returns as part of their treasury management. Additionally, Méliuz has established a Bitcoin Strategic Committee to explore the potential of expanding its investment strategy to make bitcoin a primary treasury asset.

According to Méliuz Chairman Israel Salmen, the strategic shift towards bitcoin is viewed as an “intelligent alternative” for managing cash reserves, emphasizing that “we see bitcoin as a long-term store of value.” This strategic move positions Méliuz alongside notable U.S. companies, such as MicroStrategy, which has accumulated over 500,000 bitcoins.

Méliuz offers cashback and financial services to a user base exceeding 30 million in Brazil, though the company’s stock price has significantly declined from approximately $6 billion in 2021 to a current valuation of $270 million. Salmen expressed concern over the low trading volume of Méliuz shares, suggesting it renders them “irrelevant” in public markets, and he hopes the bitcoin strategy will rekindle investor interest.

With Brazil’s cryptocurrency sector booming and over $200 billion traded last year, Méliuz aspires that its bitcoin allocation will yield superior long-term returns compared to the country’s prevailing interest rate of 13.75%.

Méliuz’s adoption of a bitcoin treasury strategy marks a significant development in Brazil’s fintech landscape, positioning the company as an industry pioneer. This move is anticipated to generate long-term returns and renew investor interest, while aligning with global trends observed in major U.S. firms. The company aims to leverage its bitcoin holdings against Brazil’s high benchmark interest rates, thereby enhancing its financial strategy.

Original Source: bitcoinmagazine.com