Brazilian fintech company M\u00e9liuz announced <\/a>Thursday it had allocated 10% of its cash reserves into bitcoin, becoming the first publicly traded firm in the country to adopt a bitcoin treasury strategy.<\/p>\n M\u00e9liuz invested $4.1 million to acquire 45.72 bitcoins at an average price of $90,926 per coin. The purchase represents roughly 10% of the company\u2019s total cash holdings based on a new policy approved by its board of directors.<\/p>\n In a statement, M\u00e9liuz said the bitcoin allocation seeks \u201clong-term returns\u201d on the investment as part of its treasury management. The company also created a Bitcoin Strategic<\/a> Committee to study expanding its strategy and making bitcoin a primary treasury asset.<\/p>\n M\u00e9liuz Chairman Israel Salmen told local media<\/a> the move into bitcoin provides an \u201cintelligent alternative\u201d to holding cash reserves. \u201cWe see bitcoin as a long-term store of value,\u201d he remarked.<\/p>\n The $4.1 million bitcoin acquisition makes M\u00e9liuz the first publicly listed Brazilian company to hold bitcoin on its balance sheet. The strategy mirrors those adopted by U.S. firms like MicroStrategy, which holds over 500,000 bitcoins worth over $46 billion.<\/p>\n M\u00e9liuz offers cashback and financial services to over 30 million users in Brazil. But its stock price has plunged from highs near $6 billion in 2021 down to just $270 million currently.<\/p>\n Salmen said the negligible trading volume makes M\u00e9liuz shares appear \u201cirrelevant\u201d in public markets. He hopes the pioneering bitcoin move renews investor interest.<\/p>\n Brazil\u2019s bitcoin and crypto sector has expanded rapidly with over $200 billion traded last year. M\u00e9liuz is betting its bitcoin treasury allocation will deliver higher long-term returns than Brazil\u2019s benchmark interest rate of 13.75%.<\/p>\n<\/p><\/div>\n
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