Brazilian Publicly Traded Méliuz Adopts Bitcoin Treasury Strategy

Brazilian fintech institution Méliuz announced Thursday it had allocated 10% of its currency reserves into bitcoin, becoming the archetypal publically traded steadfast successful the state to follow a bitcoin treasury strategy.

Méliuz invested $4.1 cardinal to get 45.72 bitcoins astatine an mean terms of $90,926 per coin. The acquisition represents astir 10% of the company’s full currency holdings based connected a caller argumentation approved by its committee of directors.

In a statement, Méliuz said the bitcoin allocation seeks “long-term returns” connected the concern arsenic portion of its treasury management. The institution besides created a Bitcoin Strategic Committee to survey expanding its strategy and making bitcoin a superior treasury asset.

Méliuz Chairman Israel Salmen told section media the determination into bitcoin provides an “intelligent alternative” to holding currency reserves. “We spot bitcoin arsenic a semipermanent store of value,” helium remarked.

The $4.1 cardinal bitcoin acquisition makes Méliuz the archetypal publically listed Brazilian institution to clasp bitcoin connected its equilibrium sheet. The strategy mirrors those adopted by U.S. firms similar MicroStrategy, which holds implicit 500,000 bitcoins worthy implicit $46 billion.

Méliuz offers cashback and fiscal services to implicit 30 cardinal users successful Brazil. But its banal terms has plunged from highs adjacent $6 cardinal successful 2021 down to conscionable $270 cardinal currently.

Salmen said the negligible trading measurement makes Méliuz shares look “irrelevant” successful nationalist markets. He hopes the pioneering bitcoin determination renews capitalist interest.

Brazil’s bitcoin and crypto assemblage has expanded rapidly with implicit $200 cardinal traded past year. Méliuz is betting its bitcoin treasury allocation volition present higher semipermanent returns than Brazil’s benchmark involvement complaint of 13.75%.