Brazilian fintech company Méliuz announced Thursday that it allocated 10% of its cash reserves to Bitcoin, becoming the country's first public company to adopt a Bitcoin financial strategy.
Méliuz invested $4.1 million to acquire 45.72 Bitcoin at an average price of $90,926 per coin. This purchase represents approximately 10% of our total cash holdings, based on a new policy approved by the board of directors.
In a statement, Méliuz said the Bitcoin allocation calls for a “long-term return” on investments as part of its financial management. The company also studied the expansion of its strategy and established the Bitcoin Strategy Committee to make Bitcoin a major financial asset.
Chairman Méliuz Israel Salmen told local media that the move to Bitcoin would provide an “intelligent alternative” to retain cash reserves. “We consider Bitcoin to be a long-term store of value,” he said.
With the $4.1 million acquisition of Bitcoin, Méliuz became the first publicly released Brazilian company, keeping Bitcoin on its balance sheet. This strategy reflects people adopted by US companies like MicroStrategy, holding over 500,000 Bitcoin, over $46 billion.
Méliuz provides cashback and financial services to over 30 million users in Brazil. However, its stock has now plummeted from a high of nearly $6 billion in 2021 to $270 million.
Salmen said Méliuz shares appear to be “unrelated” in the open market as trading volumes are negligible. He hopes that the pioneering Bitcoin move will update investor interest.
Brazil's Bitcoin and crypto sector expanded rapidly last year with more than $200 million transactions. Méliuz bets that with the Bitcoin Treasury allocation it will offer a higher long-term return than Brazil's 13.75% benchmark interest rate.
