Brazilian acted publicly Méliuz follows Bitcoin Treasury strategy
The Brazilian Fintech company Méliuz announced on Thursday that it assigned 10% of its cash reserves for Bitcoin and is the country’s first publicly traded company that says goodbye to a Bitcoin Treasury strategy.
Méliuz invested 4.1 million US dollars to acquire 45.72 bitcoins at an average price of $ 90,926 per coin. The purchase corresponds to around 10% of the company’s total cash stocks based on a new policy, which was approved by his board of directors.
In a statement, Méliuz said that Bitcoin assignment is looking for “long-term returns” in the context of its financial management. The company also founded a Bitcoin Strategic Committee to expand its strategy and make Bitcoin a primary Ministry of Finance.
The chairman of Méliuz, Israel Salmen, informed the local media that the move to Bitcoin offers an “intelligent alternative” to keep cash reserves. “We see Bitcoin as a long -term valuation,” he noted.
The Bitcoin acquisition of 4.1 million US dollars makes Méliuz the first publicly Brazilian company to keep Bitcoin in its balance sheet. The strategy reflects the people assumed by US companies such as Microstrategy, which contains over 500,000 bitcoins worth over 46 billion US dollars.
Méliuz offers over 30 million users in Brazil cashback and financial services. However, the share price dropped from high highs of 6 billion US dollars to only 270 million US dollars in 2021.
Salmen said that the negligible trade volume Méliuz shares in public markets appear “irrelevant”. He hopes that the pioneering Bitcoin parade will extend investors’ interest.
The Brazil’s Bitcoin and crypto sector quickly expanded over 200 billion US dollars last year. Méliuz sets that his assignment of Bitcoin Treasury will achieve higher long-term returns than the Brazil’s benchmark interest rate of 13.75%.
