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Méliuz revealed its purchase of 10% of its bitcoin reserves on Thursday, inspired by the successful strategy of Microstrategy in the USA. The company invested $4.1 million to acquire 45.72 bitcoins at an average price of $90,296.
Méliuz is the first Brazilian company listed to make such a significant investment in cryptocurrency with this purchase.
The company announced the formation of a special bitcoin committee to assess the possibility of expanding its investment in this area.
The committee is expected to release an initial report on the strategy within 45 to 60 days and will also oversee the implementation of bitcoin purchases, as well as setting up specific rules and oversight for such investments.
Méliuz views bitcoin as an ‘intelligent’ opportunity.
Israel Salmen, the chairman and main shareholder of Méliuz, stated to Brazil Journal that the choice to invest in bitcoin was made following the assessment that the cryptocurrency serves as a more intelligent option for utilizing their funds.
“We view bitcoin as a store of value for the future, with no intention of selling the bitcoins we acquire. Our focus is on creating long-term value rather than engaging in trading activities,” he stated.
Israel acknowledged that increasing the portion of the box dedicated to bitcoin could pose an additional risk to the business, but he mentioned that Méliuz has always been exposed to risk since he established the company in 2011.
“We have experimented with successful and unsuccessful approaches, and we view this strategy as a means to reduce dependence on traditional currencies and instead invest in bitcoin, which has delivered a 77% annual return in dollars over the last decade,” he noted.
The Méliuz strategy emulates Microstrategy’s approach of investing in bitcoin in 2020, a move that was seen as risky at the time.
The movement was a success, as the company’s market value increased from $500 million to $77 billion, currently holding around 499,000 bitcoins worth $45 billion.
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