Bitcoin Goes Corporate: Major Brazilian Firm Adopts BTC Strategy

Méliuz, a Brazilian fintech and publicly traded company, has allocated 10% of its cash reserves to Bitcoin, which represents a substantial advancement in the cryptocurrency sector. Méliuz is now a part of an increasing number of corporations that regard Bitcoin as more than a mere speculative asset.

A Bitcoin Investment Of $4.1 Million

According to a Reuters report, the company’s Board of Directors recently approved a treasury policy modification that enables BTC to be a component of its financial strategy.

Méliuz acquired 45.72 BTC for $4.1 million shortly thereafter, securing the cryptocurrency at an average price of $90,296 per coin. At a time when institutional interest in digital assets is on the rise, this move is a testament to Bitcoin’s long-term value.

No Plans To Sell Anytime Soon

Israel Salmen, the chairman, disclosed that the organization is looking into the long term. Méliuz has no plans to liquidate its crypto holdings in the foreseeable future. Rather, it intends to retain the asset, anticipating that it will bolster the company’s financial position in the long term. MicroStrategy (now ‘Strategy’), a US company that presently holds over 500,000 BTC, employs a buy-and-hold strategy that is comparable to Méliuz’ initiative.

Méliuz has experienced a steep decline in market capitalization in recent years. Mid-2021 marked the company’s peak valuation at R$6 billion. The figure has decreased to approximately R$287.66 million as of today.

Investors are apprehensive about this decline, which has prompted the company to investigate novel methods of value generation. One of the strategies for reinvigorating interest in Méliuz’ stock is the adoption of Bitcoin.

Méliuz has established a Strategic Bitcoin Committee to guarantee effective oversight of this transition to cryptocurrency. This committee will evaluate the feasibility of making further investments in Bitcoin and monitor its market conditions. The committee will be instrumental in determining the extent to which Bitcoin is compatible with the company’s long-term objectives.

Méliuz is the first publicly traded Brazilian corporation to formally incorporate Bitcoin into its treasury as a result of this decision. The company is currently placing its confidence in the crypto asset’s potential, although the outcome of this decision remains uncertain.

Featured image from Gemini Imagen, chart from TradingView