Méliuz becomes first publicly-traded Brazilian company to invest in Bitcoin, allocates 10% of cash reserves

The move comes amid decreasing investor interest in the company's shares, aiming to replicate Strategy success.

Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.

Méliuz, a publicly traded Brazilian company, has announced the acquisition of Bitcoin (BTC) equivalent to 10% of its cash holdings, local media reported on AMarch 6.

The company purchased 45.72 BTC for $4.1 million at an average price of $90,296 per BTC. The purchase makes Méliuz the first publicly listed Brazilian firm to hold a significant Bitcoin position as part of its treasury strategy. 

Israel Salmen, chairman and largest shareholder of Méliuz, said that the company sees Bitcoin as a more effective alternative for capital allocation.

He said:

“We see Bitcoin as a long-term store of value. We have no intention of selling the BTC we’ve acquired. We are not traders. We want to build long-term value.”

Salmen acknowledged that increasing exposure to Bitcoin introduces risk but emphasized that Méliuz has consistently been willing to take calculated risks since its founding in 2011.

Méliuz chairman also compared Bitcoin to traditional asset allocation strategies, arguing that holding excess capital in fixed-income instruments may seem prudent but results in a significant opportunity cost.

He added:

“Many see Bitcoin as a high-risk asset. But do we truly understand the concept of risk? What is riskier—holding cash reserves subject to devaluation due to aggressive monetary expansion policies or investing in a truly scarce asset that has appreciated 77% per year in dollars over the past decade and has a market capitalization of approximately $1.5 trillion?”

Following Strategy’s model

Méliuz’s Bitcoin investment strategy draws direct inspiration from Strategy. It cited 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.

Méliuz’s move toward Bitcoin comes amid declining investor interest in its stock. The company, which reached a peak valuation of R$6 billion (over $1 billion) in mid-2021, saw its stock trade with daily volumes averaging $43.3 million at the time.

Méliuz is valued at nearly $47 million today, with less than $700,000 in daily trading volume and minimal analyst coverage. In a letter to shareholders, Salmen acknowledged this decline, noting that the company’s stock has lost market relevance.

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