On Thursday, the Brazilian fintech giant, Méliuz, made headlines as it unveiled a bold move: dedicating 10% of its cash reserves to bitcoin. With this decision, Méliuz stepped into the limelight as the first publicly traded company in Brazil to adopt such a forward-thinking bitcoin treasury strategy.
Diving into specifics, Méliuz invested $4.1 million to purchase 45.72 bitcoins, each acquired at an average price of $90,926. This significant purchase accounts for approximately 10% of the company’s cash reserves, following a new strategic policy that was greenlit by its board of directors.
Méliuz explained in a statement that this allocation into bitcoin aims to secure “long-term returns” as a part of their treasury operations. To spearhead this initiative, the company has established a Bitcoin Strategic Committee tasked with exploring possibilities to broaden their strategy and potentially transform bitcoin into a mainstay treasury asset.
In an interview with local media outlets, Israel Salmen, the Chairman of Méliuz, expressed that moving into bitcoin provides a “smart alternative” to merely holding traditional cash reserves. “We view bitcoin as a sustainable store of value over the long haul,” he commented, adding weight to their strategic approach.
This significant $4.1 million investment into bitcoin marks a pioneering moment for Méliuz, cementing its status as the first publicly listed company in Brazil to incorporate bitcoin into its financial portfolio. This strategic shift resonates with those made by U.S. enterprises like MicroStrategy, which famously holds in excess of 500,000 bitcoins, valued at over $46 billion.
Méliuz, known for offering cashback and financial services to a sprawling base of over 30 million Brazilian users, has seen turbulent times. Its market valuation nosedived from nearly $6 billion in 2021 to a modest $270 million today.
Chairman Salmen noted that the thin trading volume contributes to the perception of Méliuz’s shares as “insignificant” in public markets. Through this trailblazing bitcoin strategy, he hopes to rekindle interest among investors.
The cryptocurrency sector, especially bitcoin, has been booming in Brazil, with last year’s transactions topping an impressive $200 billion. By integrating bitcoin into its treasury, Méliuz is banking on the cryptocurrency to potentially outpace Brazil’s current benchmark interest rate of 13.75%, aiming for far superior long-term gains.
