Méliuz: How Brazil’s Publicly Traded Company is Embracing Bitcoin in its Treasury Strategy

Bitcoin Magazine

Brazilian Publicly Traded Méliuz Adopts Bitcoin Treasury Strategy

The Brazilian financial technology firm Méliuz announced on Thursday its decision to invest 10% of its cash reserves into bitcoin, making it the first publicly listed company in Brazil to implement a bitcoin treasury strategy.

Méliuz has allocated $4.1 million to procure 45.72 bitcoins, purchasing them at an average price of $90,926 each. This significant investment encompasses about 10% of the company’s overall cash reserves, following the approval of a new policy by its board of directors.

According to a statement from Méliuz, this bitcoin investment aims to generate “long-term returns” as a component of its treasury management approach. Furthermore, the company established a Bitcoin Strategic Committee, which is tasked with exploring future expansions of this strategy and potentially positioning bitcoin as a primary asset on its balance sheet.

Méliuz Chairman Israel Salmen shared with local media that their venture into bitcoin presents an “intelligent alternative” compared to merely holding cash reserves. He commented, “We regard bitcoin as a long-term store of value.”

This purchase of $4.1 million not only marks Méliuz as Brazil’s first publicly traded firm to incorporate bitcoin into its balance sheet but also aligns with practices adopted by American companies such as MicroStrategy, which boasts a bitcoin reserve exceeding 500,000 coins valued at over $46 billion.

Méliuz provides cashback and financial solutions to a vast user base of over 30 million customers in Brazil; however, its share value has plummeted from nearly $6 billion in 2021 to approximately $270 million today.

Salmen pointed out that the low trading volume has rendered Méliuz’s shares seemingly “irrelevant” in the market. He hopes that this innovative step towards bitcoin will revive interest among investors.

The cryptocurrency landscape in Brazil has seen remarkable growth, with trading volumes surpassing $200 billion last year. Méliuz is optimistic that its bitcoin treasury strategy will yield higher long-term returns compared to Brazil’s current benchmark interest rate, which stands at 13.75%.

This article Brazilian Publicly Traded Méliuz Adopts Bitcoin Treasury Strategy was originally published on Bitcoin Magazine and penned by Vivek Sen Bitcoin.