tl;dr
Méliuz, a publicly traded Brazilian company, has invested 10% of its cash reserves in Bitcoin, making it the first publicly listed Brazilian firm to do so. The company purchased 45.72 BTC for $4.1 million, citing Bitcoin as a long-term store of value and an effective alternative for capital allocati...
Méliuz, a publicly traded Brazilian company, has made a significant Bitcoin acquisition as part of its long-term treasury strategy, becoming the first publicly listed Brazilian firm to do so. The company invested 10% of its cash reserves, purchasing 45.72 BTC for $4.1 million, citing Bitcoin as a long-term store of value and an effective alternative for capital allocation. This decision was influenced by the success of other companies, such as MicroStrategy, following their Bitcoin treasury strategies. Méliuz's move toward Bitcoin comes as its stock has experienced declining investor interest and decreased market relevance.
Israel Salmen, chairman and largest shareholder of Méliuz, emphasized that the company sees Bitcoin as a more effective alternative for capital allocation, stating that they have no intention of selling the acquired BTC and aim to build long-term value. Salmen acknowledged the risk associated with increasing exposure to Bitcoin but highlighted the company's willingness to take calculated risks since its founding in 2011. He also compared Bitcoin to traditional asset allocation strategies, arguing that holding excess capital in fixed-income instruments may result in a significant opportunity cost.
Méliuz's Bitcoin investment strategy draws inspiration from MicroStrategy, citing the success of the company led by Michael Saylor following the addition of BTC to its treasury, with the company's shares soaring 423% last year. This move comes amid declining investor interest in Méliuz's stock, as the company's valuation has decreased, daily trading volume has diminished, and analyst coverage has become minimal. In a letter to shareholders, Salmen acknowledged this decline, noting that the company's stock has lost market relevance.