Brazilian fintech company Méliuz has decided to jump on the Bitcoin bandwagon, making it the first publicly traded firm in Brazil and Latin America to do so. Following approval from its shareholders, the cashback-focused company announced on May 15 that it has officially included Bitcoin investments in its corporate strategy. With a user base of over 30 million people, Méliuz has made a bold move to diversify its treasury assets.
Bitcoin, the world’s most popular cryptocurrency, has been gaining traction as a legitimate investment option for companies looking to hedge against traditional financial markets’ volatility. Méliuz took the plunge and acquired 274.52 Bitcoin for a whopping $28.4 million at an average price of $103,604. This latest purchase adds to the 45.73 BTC the company bought back in March, bringing its total Bitcoin holdings to 320.25 BTC, valued at over $33 million based on current prices.
In a statement, Méliuz expressed its new mission as a “Bitcoin Treasury Company,” aiming to accumulate Bitcoin in a way that benefits its shareholders. The company plans to utilize its cash flow and corporate structures to increase its exposure to Bitcoin over time. This strategic shift signifies a move towards maximizing the amount of Bitcoin per share, aligning its capital strategy for long-term BTC growth. Executive chairman Israel Salmen called it a “historic day” for the company, officially marking Méliuz as the first Bitcoin Treasury Company listed in Brazil. With a 600% yield on its BTC holdings since the March purchase, Méliuz is poised to reap the benefits of its bold move.
Not really sure why this matters, but Méliuz’s stock price has surged over 117% since its initial Bitcoin investment on March 6, making it one of the top-performing stocks on the Brasil Bolsa Balcão. The company’s decision to embrace Bitcoin in its treasury assets follows a global trend of public companies shifting towards Bitcoin-centric balance sheets. Michael Saylor-led MicroStrategy set the tone for this strategy in 2020, inspiring others to follow suit. This week, Bahrain’s Al Abraaj Group made headlines as the first listed company in the Middle East to adopt Bitcoin as a treasury asset. Starting with a modest 5 BTC purchase, the company plans to increase its Bitcoin holdings in a long-term shift supported by 10X Capital.
In the U.S., David Bailey’s Nakamoto, a Bitcoin-native holding company, recently went public through a merger with KindlyMD, raising a staggering $710 million. Bailey envisions creating a “Bitcoin conglomerate” with this capital, further solidifying Bitcoin’s position in the corporate world. As more companies embrace Bitcoin as a treasury asset, the cryptocurrency’s mainstream acceptance continues to grow, reshaping the traditional financial landscape.
