Meliuz Invests $4 Million in Bitcoin, Adopts Treasury Strategy Amid Inflation Concerns

Meliuz invests $4 million in Bitcoin, allocating 10% of its cash flow to hedge against inflation and currency depreciation. The move boosts its stock but raises analyst concerns.

Brazil’s Meliuz Allocates 10% of Cash Flow to Bitcoin Amid Inflation Concerns

Meliuz, a Brazilian cashback company, has become the first firm in Brazil to allocate part of its reserves to Bitcoin, investing over $4 million in the cryptocurrency last week. The company plans to dedicate 10% of its free cash flow to Bitcoin as a long-term hedge against inflation and currency depreciation.

Bitcoin as a Hedge Against Inflation

Meliuz founder and chairman Israel Salmen explained that the decision was driven by the Brazilian real’s declining value and the company’s high tax burden. “Official inflation rates do not reflect the real loss of purchasing power, so we decided to allocate 10% of our cash flow to Bitcoin,” Salmen stated.

The move mirrors the strategy adopted by U.S.-based Strategy, which has built a significant Bitcoin treasury. While Meliuz’s investment is on a smaller scale, it signals a shift among emerging-market companies looking for alternative financial strategies.

Market Reaction and Analyst Concerns

Following the announcement, Meliuz’s stock surged over 15%, reflecting investor optimism. However, analysts expressed concerns over the strategy. XP analysts noted that this policy “appears disconnected from the company’s operational objectives,” raising doubts about its effectiveness.

Despite skepticism, Salmen assured that the investment would not impact Meliuz’s core operations. “We are aware of the risks, but using only 10% of our cash flow ensures that our operations remain stable,” he said.

Long-Term Bitcoin Strategy

Meliuz emphasized that volatility is not a concern, as the company views Bitcoin as a long-term asset. “We have no target or deadline to sell. We are focused on being long-term investors,” Salmen concluded.

As more companies explore Bitcoin as a treasury asset, investors and businesses should evaluate its role in financial planning. Will Bitcoin adoption among corporations continue to grow?