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Brazilian Publicly Traded Méliuz Adopts Bitcoin Treasury Strategy

Bitcoin Magazine

Brazilian Publicly Traded Méliuz Adopts Bitcoin Treasury Strategy

Brazilian fintech company Méliuz annunciato Thursday it had allocated 10% of its cash reserves into bitcoin, becoming the first publicly traded firm in the country to adopt a bitcoin treasury strategy.

Méliuz invested $4.1 million to acquire 45.72 bitcoins at an average price of $90,926 per coin. The purchase represents roughly 10% of the company’s total cash holdings based on a new policy approved by its board of directors.

In a statement, Méliuz said the bitcoin allocation seeks “long-term returns” on the investment as part of its treasury management. The company also created a Bitcoin Strategic Committee to study expanding its strategy and making bitcoin a primary treasury asset.

Méliuz Chairman Israel Salmen told local media the move into bitcoin provides an “intelligent alternative” to holding cash reserves. “We see bitcoin as a long-term store of value,” he remarked.

The $4.1 million bitcoin acquisition makes Méliuz the first publicly listed Brazilian company to hold bitcoin on its balance sheet. The strategy mirrors those adopted by U.S. firms like MicroStrategy, which holds over 500,000 bitcoins worth over $46 billion.

Méliuz offers cashback and financial services to over 30 million users in Brazil. But its stock price has plunged from highs near $6 billion in 2021 down to just $270 million currently.

Salmen said the negligible trading volume makes Méliuz shares appear “irrelevant” in public markets. He hopes the pioneering bitcoin move renews investor interest.

Brazil’s bitcoin and crypto sector has expanded rapidly with over $200 billion traded last year. Méliuz is betting its bitcoin treasury allocation will deliver higher long-term returns than Brazil’s benchmark interest rate of 13.75%.

This post Brazilian Publicly Traded Méliuz Adopts Bitcoin Treasury Strategy first appeared on Bitcoin Magazine and is written by Vivek Sen Bitcoin.


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