A well-known fintech company in Brazil has just shocked the stock market by officially becoming the first company in South America to transition its treasury model to hold Bitcoin. That is Méliuz – a unit specializing in cashback and shopping incentives, listed on the B3 (the oldest stock exchange in Brazil).
Spending 28 million USD to buy Bitcoin – stocks immediately rise 26%
Méliuz purchased 274.52 BTC for a total value of approximately 28.4 million USD, equivalent to an average price of 101,703 USD/BTC. Following the announcement, the company’s CASH3 stock immediately surged 26%, attracting attention from investors and the crypto community in South America.
The company stated that the goal is not only to hedge against inflation or devaluation of the local currency but also to make a comprehensive strategic shift, focusing on maximizing the amount of Bitcoin per share that investors hold.
The strategy of 'copying MicroStrategy' and its impact on shareholders
Theo Ray Nasser – representative of BlockFills trading company for the Latin region – Méliuz is replicating the successful model of Strategy (the new name of MicroStrategy). Accumulating Bitcoin allows investors to indirectly access Bitcoin prices through stocks, rather than having to directly own it.
Méliuz has faced many difficulties in the high interest rate environment in Brazil, causing its stocks to lose some appeal. However, the new turning point in 2024 has helped them regain market interest. “Although not entirely related to core business operations, this strategy is yielding significant results,” Ray commented.
The trend of accumulating Bitcoin is spreading
MicroStrategy is the pioneering company that began buying Bitcoin in 2020 and currently holds over 569,000 BTC, becoming the company with the most BTC in the world. Currently, many other listed companies are also transitioning to a 'Bitcoin treasury' model with the hope of increasing stock value and attracting new investors.
Brazil – the largest economy in Latin America – is also becoming the fastest-growing crypto market in the region, leading in the number of cryptocurrency ETFs and trading volume.
The shift of traditional companies transitioning their financial models to accumulate Bitcoin is opening a new era for both stocks and the crypto market. However, investors need to be aware: Bitcoin prices are highly volatile and not suitable for all risk appetites. Invest responsibly and closely monitor market developments.