The Lowdown on Brazil's Crypto Pioneer: Méliuz's $28M Bitcoin Play
Skyrocketing Fintech Shares in Brazil Due to Bitcoin Purchase Methodology
Dive into SCOOP
In a groundbreaking move for Brazil and South America, publicly listed fintech company Méliuz is now the region's first Bitcoin treasury. After investing a whopping $28 million in the cryptocurrency, Méliuz has rebranded its focus to maximize the Bitcoin per share for its shareholders.
Méliuz, a cashback coupon provider and a company listed on the oldest Brazilian stock exchange (B3: CASH3), made headlines earlier in March with its plans to buy Bitcoin. The digital currency investment sent their stock soaring, and last Friday's announcement that they had acquired 274.52 BTC for around $28.4 million (average price per coin: $101,703) sent their shares skyrocketing yet again, with a 26% increase in value.
Ray Nasser, Head of Latin America for trading firm BlockFills, noted that Méliuz is mimicking the strategy employed by MicroStrategy, a well-known Bitcoin accumulator, to increase shareholder value. As many Brazilian companies faced struggles amid the country's high-interest rates, with Méliuz experiencing a decrease in relevance and stock value over the years, this shift may mark a turnaround for the company.
Although this move represents a shift away from Méliuz's core business, company officials suggest that it's a smart and timely investment, given the current hype surrounding Bitcoin. Other Nasdaq-listed companies have also jumped on the bandwagon, altering their business models to prioritize Bitcoin accumulation.
Méliuz is originally based in Brazil, which holds the title as Latin America's largest digital asset market. The country boasts the most cryptocurrency ETFs in the region. With American software firm MicroStrategy leading the charge in Bitcoin accumulation, Méliuz joins this trend as the South American pioneer.
Additional Insights
While MicroStrategy serves as a prominent example of a company accumulating Bitcoin, other businesses worldwide are implementing similar strategies. Noteworthy examples include:
- Twenty One: This company, with backing from Tether and the SoftBank Group, aims to gain Bitcoin dominance by maximizing the digital currency balance per share. Upon launch, Twenty One is expected to have over 42,000 Bitcoin, ranking it as the third-largest Bitcoin treasury globally.
- Strive Asset Management: This company plans to employ a Bitcoin treasury company model that incorporates tax efficiency, capital markets, and leverage to maximize Bitcoin per share. Strive Asset Management combines with publicly traded asset managers to become the first publicly traded asset manager-led Bitcoin Treasury Company.
More detailed information on companies in Brazil and Latin America that are actively accumulating Bitcoin through strategies similar to MicroStrategy's may require further research, as current data is limited. Companies like Mercado Bitcoin in Brazil are key players in the cryptocurrency market but primarily focus on trading and exchange services.
Coming Up Next in Your Daily Debrief Newsletter
Stay tuned for tomorrow's edition, where we'll explore the latest trends in the world of technology, finance, and cryptocurrency. Until then, keep your fingers on the pulse of the ever-evolving digital frontier.
Your Feedback Matters
We hope you enjoyed today's edition of the Daily Debrief Newsletter. Let us know what you thought about this article and the Daily Debrief Newsletter overall by replying to this email or visiting our website. Your feedback helps us shape our future content.
Disclaimer
The information contained in this newsletter is for informational purposes only. It does not constitute financial advice or any other advice, and readers are encouraged to do their own research and seek professional advice before making any investment decisions. Investments come with inherent risk and may result in loss of assets. Always consult a qualified professional for investment advice tailored to your personal circumstances.
Edited by James Rubin
- Me liz, after investing $28 million in Bitcoin, is now South America's first Bitcoin treasury, signaling a shift in focus to increase Bitcoin per share for its shareholders.
- In line with Me liz's strategy, other companies like Twenty One, backed by Tether and the SoftBank Group, aim to maximize their digital currency balance per share, positioning themselves as potential global leaders in Bitcoin dominance.
- The cryptocurrency market in Brazil, the largest digital asset market in Latin America, has attracted the attention of companies like Strive Asset Management, which plans to implement a Bitcoin treasury company model for tax efficiency, capital markets, and leverage, ultimately targeting Bitcoin per share maximization.
- While the strategies of companies like MicroStrategy and Me liz in accumulating Bitcoin are commendable, further research may be needed to identify other Brazilian and Latin American companies actively pursuing similar strategies, as current data is limited.
