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- Méliuz plans to raise 450 million reais ($78.6 million) to expand its Bitcoin holdings.
- The company currently holds 320.25 BTC, valued at $33.55 million.
- Shares dropped over 8% following the announcement of the offering.
Méliuz, a fintech company based in Brazil, has revealed a bold plan to raise 450 million reais through a primary share offering. The move is aimed at increasing its Bitcoin reserves. The company currently holds 320.25 BTC, worth roughly $33.55 million.
This offering is a further step in the company’s evolution from traditional fintech to digital asset acquisition. Once known for its cashback and coupon model, Méliuz has transformed into a Bitcoin-centric business.
The firm now claims to be Brazil’s inaugural Bitcoin treasury. The launch is slated on 17 million shares for an anticipated raise of 150 million reais. Still, Méliuz could triplicate that amount if market demand allows.
Bitcoin at the Core of Méliuz’s Strategy
Méliuz’s pivot is inspired by the strategy used by U.S.-based MicroStrategy. Similarly to its American counterpart, Méliuz is tapping capital markets to finance its purchases of Bitcoin. The objective is to increase the amount of Bitcoin held per share, thereby establishing itself as a proxy for Bitcoin for investors.
Since initiating its Bitcoin strategy in March, Méliuz has bought consistently. It initially purchased 45.72 BTC at a premium price. However, the company’s Bitcoin holdings show a modest gain of close to 3% now.
This strategic shift is not simply a move to protect cash from inflation. It is, rather, an integral aspect of the company’s DNA. The story is no longer just about cashback or coupons. For Méliuz, Bitcoin is now fundamental to growth and value creation.
Share Offering Sparks New Momentum
The stock market reacted immediately. Shares of Méliuz fell more than 8% after the announcement. Investors were worried about dilution of shares. However, the general trend has been positive. The stock is up over 200% since January due to increased interest in the company’s new strategy.
The volume of shares traded increased, indicating that there was interest from investors. At present, the market capitalization of Méliuz is 305 million reais, which is significantly lower than its peak in 2020 but has built up some momentum. The calendar for the deal is tight. Prior subscription windows open in early June, and new shares are slated to trade beginning June 16. There will be two pre-market opportunities for existing shareholders to claim shares.
Méliuz is no longer just a cashback company. Its small venture with Bitcoin rewards in 2022 was an indication of embracing cryptocurrency early on. Though that feature was discontinued, insights gained from it shaped the company’s present strategy. This new share offering might define the company’s next chapter. By continuing to bet on Bitcoin, Méliuz is changing not just its future but perhaps also that of Brazil’s fintech sector.
Related Reading: Bitcoin’s Final Leg Up: Is a $175K Breakout Coming Soon?
