Méliuz Implements Bitcoin Treasury Strategy as First Brazilian Public Firm

Méliuz becomes the first public Brazilian firm to adopt a bitcoin treasury strategy, allocating 10% of its cash reserves into bitcoin. The $4.1 million investment aims for long-term returns, supported by a newly formed Bitcoin Strategic Committee. Chairman Israel Salmen views it as a smart alternative to traditional cash management, hoping to renew investor interest amid a decline in the company’s stock value.

Méliuz, a Brazilian fintech firm, has announced the allocation of 10% of its cash reserves into bitcoin, thereby becoming the first publicly traded company in Brazil to implement a bitcoin treasury strategy. The company invested $4.1 million to acquire 45.72 bitcoins at an average price of $90,926 per coin, marking a significant transition in its fiscal approach.

The decision, approved by Méliuz’s board, aims to secure “long-term returns” through this investment and is part of a broader treasury management strategy. To further assess this initiative, the company has established a Bitcoin Strategic Committee dedicated to exploring the potential of bitcoin as a primary treasury asset.

Chairman Israel Salmen emphasized that this shift towards bitcoin represents an “intelligent alternative” to traditional cash reserves, highlighting bitcoin’s potential as a long-term store of value. This acquisition makes Méliuz a pioneer among Brazilian publicly listed firms, similar to U.S. companies like MicroStrategy, which has amassed a significant bitcoin holding.

The fintech has experienced a drastic drop in its stock value, from approximately $6 billion in 2021 to around $270 million, prompting Salmen to seek renewed investor interest through this innovative strategy. With Brazil’s crypto sector thriving, trading over $200 billion last year, Méliuz is optimistic that its bitcoin treasury allocation will yield better returns than the country’s current benchmark interest rate of 13.75%.

In conclusion, Méliuz’s strategic decision to allocate a portion of its cash reserves into bitcoin marks a significant shift in financial management for publicly traded companies in Brazil. By establishing a Bitcoin Strategic Committee and viewing bitcoin as a long-term investment, Méliuz aims to enhance its treasury management and attract renewed investor interest amidst declining stock values. This innovative move reflects the broader growth and potential of the cryptocurrency market in Brazil.

Original Source: bitcoinmagazine.com