Méliuz becomes first publicly-traded Brazilian company to invest in Bitcoin, allocates 10% of cash reserves

Méliuz, a publically traded Brazilian company, has announced the acquisition of Bitcoin (BTC) equivalent to 10% of its currency holdings, section media reported connected AMarch 6.

The institution purchased 45.72 BTC for $4.1 cardinal astatine an mean terms of $90,296 per BTC. The acquisition makes Méliuz the archetypal publically listed Brazilian steadfast to clasp a important Bitcoin presumption arsenic portion of its treasury strategy. 

Israel Salmen, president and largest shareholder of Méliuz, said that the institution sees Bitcoin arsenic a much effectual alternate for superior allocation.

He said:

“We spot Bitcoin arsenic a semipermanent store of value. We person nary volition of selling the BTC we’ve acquired. We are not traders. We privation to physique semipermanent value.”

Salmen acknowledged that expanding vulnerability to Bitcoin introduces hazard but emphasized that Méliuz has consistently been consenting to instrumentality calculated risks since its founding successful 2011.

Méliuz president besides compared Bitcoin to accepted plus allocation strategies, arguing that holding excess superior successful fixed-income instruments whitethorn look prudent but results successful a important accidental cost.

He added:

“Many spot Bitcoin arsenic a high-risk asset. But bash we genuinely recognize the conception of risk? What is riskier—holding currency reserves taxable to devaluation owed to assertive monetary enlargement policies oregon investing successful a genuinely scarce plus that has appreciated 77% per twelvemonth successful dollars implicit the past decennary and has a marketplace capitalization of astir $1.5 trillion?”

Following Strategy’s model

Méliuz’s Bitcoin concern strategy draws nonstop inspiration from Strategy. It cited the occurrence of the institution led by Michael Saylor pursuing the summation of BTC to its treasury, with the company’s shares soaring 423% past year.

Méliuz’s determination toward Bitcoin comes amid declining capitalist involvement successful its stock. The company, which reached a highest valuation of R$6 cardinal (over $1 billion) successful mid-2021, saw its banal commercialized with regular volumes averaging $43.3 cardinal astatine the time.

Méliuz is valued astatine astir $47 cardinal today, with little than $700,000 successful regular trading measurement and minimal expert coverage. In a missive to shareholders, Salmen acknowledged this decline, noting that the company’s banal has mislaid marketplace relevance.

The station Méliuz becomes archetypal publicly-traded Brazilian institution to put successful Bitcoin, allocates 10% of currency reserves appeared archetypal connected CryptoSlate.