Méliuz Faces Stock Decline Following Capital Raise Announcement for Bitcoin Purchases
The post Méliuz Faces Stock Decline Following Capital Raise Announcement for Bitcoin Purchases appeared on BitcoinEthereumNews.com.
Méliuz’s recent announcement to raise capital for Bitcoin purchases has sparked significant market reactions, leading to an 8% drop in its stock price. This strategic pivot positions Méliuz as Brazil’s first Bitcoin treasury company, reflecting a growing trend among traditional fintechs to embrace cryptocurrencies. “Rather than just allocating part of its cash to Bitcoin as a hedge against inflation or currency devaluation, the company has repositioned its purpose to act by maximizing the amount of Bitcoin per share,” stated a recent company statement. Méliuz plans to raise up to $78.6 million to boost its Bitcoin holdings, reflecting a trend in fintech to leverage cryptocurrencies for growth. Méliuz’s Bold Move into Bitcoin Investments Méliuz, a Brazilian cashback and coupon company, is making headlines with its ambitious plan to raise up to 450 million reais (approximately $78.6 million) through a primary share offering. This maneuver aims to enhance its Bitcoin holdings dramatically, marking a strategic shift from traditional fintech operations. The company plans to issue 17 million common shares, starting with an initial target of 150 million reais ($26.2 million) but holds the option to expand the offering by up to 200% should demand support such moves. The Transformation to a Bitcoin Treasury Company This announcement signifies a broader transformation for Méliuz, which has moved from a standard cashback model to positioning itself within the burgeoning world of cryptocurrency. Since its initial investment in March, where it acquired 320.2 BTC for around $33.55 million, the company has aimed to redefine its mission in the fintech landscape. Market Reactions and Future Outlook Méliuz’s stock price has reacted sharply to the news, reflecting investor sentiment surrounding the company’s strategic pivot. After climbing approximately 217% over the last year, the stock saw a significant decline on Friday, dropping to 8.13 reais after the announcement, with…
