Brazil fintech gets approval to become a Bitcoin treasury company

Méliuz, a Brazilian fintech company, has become the first publicly traded Bitcoin treasury company in Brazil after its shareholders approved a plan to significantly increase its Bitcoin holdings. The company purchased 274.52 Bitcoin (BTC) for an average price of $103,604, adding to its existing 45.73 BTC acquired on March 6th. This latest acquisition brings Méliuz’s total Bitcoin holdings to 320.3 BTC, currently valued at over $33 million, representing a substantial 600% yield.

The company’s executive chairman, Israel Salmen, announced the news on X (formerly Twitter), highlighting the strategic shift towards Bitcoin accumulation as a core business strategy, rather than merely a hedge against inflation. Méliuz plans to acquire Bitcoin “accretively” for shareholders, utilizing diverse financial instruments. This positions the company as the first Bitcoin treasury company in Latin America, according to Salmen, differentiating its approach from simply allocating a portion of cash reserves to Bitcoin.

While Méliuz’s Bitcoin holdings are significant, they are surpassed by MercadoLibre, another Latin American e-commerce giant, which currently holds over 570 BTC, valued at approximately $59.2 million. MercadoLibre’s most recent purchase of 157.7 BTC occurred on March 31st.

Méliuz’s stock performance has been remarkably positive since its initial Bitcoin purchase in March, showing an increase of over 117% on the Brasil Bolsa Balcão. This surge has boosted its market capitalization to over $128 million (727.9 Brazilian real). The company’s cashback program serves over 30 million users across Brazil, providing a substantial user base.

This move by Méliuz reflects a growing trend among companies to incorporate Bitcoin into their treasury strategies. While the overall cryptocurrency market faces uncertainty, Méliuz’s bold strategy showcases a bullish outlook on Bitcoin’s long-term potential, aiming to maximize Bitcoin holdings per share for shareholder benefit. The success of this strategy remains to be seen but signals a significant development in the intersection of finance and cryptocurrency in Brazil.