Latam Insights Encore: Meliuz Case Developing—Is There Demand for a Latam-Based Strategy?

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Welcome to Latam Insights Encore, a deep dive into Latin America’s most relevant economic and crypto news from the past week. This edition explores how the recent bitcoin purchases by Meliuz, a Brazil-based cashback company, might serve as a thermometer to gauge the real demand for bitcoin corporate treasury companies in Latam.

Meliuz Will (Likely) Not Explode Like Other Businesses Adopting Bitcoin Treasury Strategies

Last week, Meliuz, a company few knew previously, made headlines by becoming the first business in Latin America to adopt a bitcoin treasury strategy a la Michael Saylor’s Strategy. The purchase, which grew its reserves to 320.2 BTC, presents an interesting case for measuring the real demand for companies adopting a similar plan in Latam.

Read more: Meliuz Purchases 274 BTC, Pioneering Bitcoin Treasury Strategy in Brazil and Latam

Replicating Strategy’s opportunity in Latam will be very difficult for the company, as it starts in a position where there are already many options for the Brazilian investor to have direct exposure to BTC right now, including futures and exchange-traded funds (ETFs). Strategy, formerly known as Microstrategy, surged as an alternative when bitcoin was not as institutionalized as now, and was seen as a sort of company ETF for investors to leverage.

In any case, Meliuz might be the first company, but it will not be the only one adopting bitcoin as a reserve asset. Oranje, another Brazil-based business, is already gearing up to invest millions in BTC, giving investors yet another option to bet on bitcoin. Also, Latam investors have always been more open to dealing with crypto directly, even if that encompasses managing custody tasks.

Does this mean that the rise in the stock prices of these companies when announcing their bitcoin moves will suffer? Probably so, as there are more and more businesses jumping onto the bitcoin bandwagon each day.

Nonetheless, the true benefit behind a bitcoin reserve remains: the possibility of supporting the company’s funds in a scarce asset that has become a battle-tested store of value since its inception, with prices currently nearing all-time highs.

The content is for reference only, not a solicitation or offer. No investment, tax, or legal advice provided. See Disclaimer for more risks disclosure.
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