Méliuz, a Brazilian fintech and publicly traded company, has allocated 10% of its cash reserves to Bitcoin, marking a significant advancement in the cryptocurrency sector. This move positions Méliuz alongside a growing number of corporations that see Bitcoin as more than just a speculative asset.
A Bitcoin Investment Of $4.1 Million
According to a Reuters report, the company’s Board of Directors recently approved a treasury policy modification that allows BTC to be incorporated into its financial strategy. Shortly after this announcement, Méliuz acquired 45.72 BTC for $4.1 million, securing the cryptocurrency at an average price of $90,296 per coin. This strategic investment comes at a time when institutional interest in digital assets is increasing, reinforcing Bitcoin’s long-term value.
No Plans To Sell Anytime Soon
Israel Salmen, the chairman, indicated that the organization is focused on long-term growth. Méliuz has no immediate plans to liquidate its crypto holdings; rather, it aims to hold the asset, projecting that it will strengthen the company’s financial position over time. This buy-and-hold strategy mirrors that of MicroStrategy (now ‘Strategy’), a US firm that currently possesses over 500,000 BTC.
Stock Price Decline Sparks New Strategy
Méliuz has recently faced a steep decline in market capitalization, with its valuation dropping from its mid-2021 peak of R$6 billion to approximately R$287.66 million today. This downturn has made investors apprehensive, prompting the company to explore innovative avenues for value generation. One strategy to rekindle interest in Méliuz’s stock is the adoption of Bitcoin as a treasury asset.
A Strategic Crypto Panel To Direct Future Actions
Méliuz has also established a Strategic Bitcoin Committee to oversee this transition to cryptocurrency. This committee will assess the feasibility of further investments in Bitcoin and monitor market conditions closely. Their guidance will be critical in determining how well Bitcoin aligns with the company’s long-term goals.
By formally incorporating Bitcoin into its treasury, Méliuz becomes the first publicly traded Brazilian corporation to take this step. The company is placing its trust in the potential of this crypto asset; however, the ultimate outcome of this bold decision remains uncertain.
Featured image from Gemini Imagen, chart from TradingView
