Market News

Brazil Strives to Boost Bitcoin Holdings as Méliuz Launches Share Offering

Brazilian fintech Méliuz has attracted significant attention following its announcement of a new share offering aimed at raising 450 million reais (approximately $78.6 million) to increase its Bitcoin reserves.

The company, known for its cashback and coupon services, experienced an 8% decline in stock value after revealing plans to issue up to 17 million common shares.

If demand is high, Méliuz could potentially double its offering, emphasizing its determination to transition into Brazil's first Bitcoin treasury organization.

Since acquiring $4.13 million worth of Bitcoin in March, Méliuz has accumulated 320.2 BTC valued around $33.55 million, showcasing its commitment to the cryptocurrency market.

Instead of merely using Bitcoin as an inflation hedge, the firm aims to enhance shareholder value by maximizing Bitcoin holdings per share.

Méliuz’s stock has been volatile, experiencing a gain of about 217% over the past year, reaching a peak of around 11 reais, before recently dropping to 8.13 reais amid the announcement.

Experts liken Méliuz's strategy to that of MicroStrategy, which successfully created a significant market for its Bitcoin investments, although Méliuz operates on a smaller scale.

The pricing for the new shares is set for June 12, with trading expected to commence on June 16, following dedicated subscription periods for existing shareholders.

As of now, Méliuz's Bitcoin investments have shown a modest profit, further exemplifying its strategic pivot from its traditional business model.

Founded in 2011, Méliuz continues to innovate by integrating cryptocurrency into its offerings, demonstrating a transformative approach to its financial services.