A Brazilian cashback firm called Méliuz has announced that it has purchased 10% of its cash reserves in Bitcoin, following in the footsteps of Strategy.

According to Brazil Journal , Méliuz spent $4.1 million and purchased 45.72 Bitcoin (BTC) at an average price of $90,296 for each coin. Further, a report offering an initial outlook on this strategy will be published in the next 45 to 60 days.

With this initiative, Méliuz has become the first publicly traded Brazilian business to allocate a significant part of its capital to Bitcoin. The company also created a “Bitcoin strategic committee” to assess the possibility of further investing in cryptocurrency, similar to Strategy’s Bitcoin 21/21 initiative.

The 21/21 plan is intended to raise $21 billion through equity financing and $21 billion through bonds in a three-year period.

In Oct. 2024, Saylor , executive chairman and co-founder of Strategy, explained funds would go towards acquiring more Bitcoin, as a testament to the company’s conviction to Bitcoin.

Bitcoin as a hedge against inflation

In statements to Brazil Journal, Israel Salmen, chairman and majority shareholder of Méliuz, explained that the decision to acquire Bitcoin came from the premise that it is “a more intelligent alternative to the investment of our cash.”

Additionally, the company sees more value in Bitcoin as a long-term storage option rather than trading the asset.

“We see bitcoin as a long-term store of value. We have no interest in selling the bitcoins we buy. We are not traders. We want to build value over the long term,” said Salmen.

Méliuz S.A. stock price on the rise

Méliuz’s foray into Bitcoin occurs amid declining investor curiosity over its stock. According to Brazil Journal, the stock price of Méliuz peaked at an average daily volume of 250 million Brazilian real (BRL) in 2021, and its market capitalization was close to R$6 billion.

The company is now worth 287.66 million BRL. As of writing, the stock price of the firm has shot up to 3.30 BRL, a +2.48% uptick in the last 24 hours.

In a letter sent to shareholders, Salmen said that the company’s stock had lost meaning with its daily trading volume falling to $4 million BRL. He also noted that the options market for the stock has mostly evaporated.

Méliuz says it would be a missed opportunity to leave a large part of this capital in the classic fixed income.