Brazilian fintech company Méliuz saw its shares drop by 7% to R$8.20 on May 30 following the announcement of a primary share sale that could potentially raise $26 million to expand its Bitcoin treasury. The company filed to issue 17,006,803 new ordinary shares through Brazil’s fast-track registration channel for professional investors.
The offering, initially set at $26 million, could be expanded by up to 200% depending on demand. Pricing will be determined through a book-building process that establishes a single clearing price for all participants, including retail investors with priority rights.
CEO Israel Salmen described the share sale as a structural move to “optimize the balance sheet” and align with the board’s decision made in March to allocate 10% of the company’s cash reserves to Bitcoin. This strategy mirrors that of Strategy, another Brazilian company that has used capital markets to increase its digital asset holdings.
Méliuz made headlines in March when it became the first Brazilian public company to adopt a Bitcoin treasury strategy, purchasing 45.72 BTC for $4.1 million at an average price of $90,296 per coin. Salmen emphasized that Bitcoin is viewed as a long-term store of value, with no plans to trade the position.
Following the announcement of the Bitcoin treasury allocation, Méliuz’s stock price surged by 113% from March 6 to the current date, outperforming Brazil’s Ibovespa benchmark and tracking Bitcoin’s price rally to over $110,000.
In the next steps, Méliuz plans to convene an extraordinary shareholders’ meeting to increase its authorized capital, enabling it to fulfill warrant exercises promptly. The company intends to maintain its current dividend policy and sees the Bitcoin allocation as a complementary rather than disruptive aspect of its core operations.
With nearly $263 million in gross cash and financial investments at the end of the first quarter, Méliuz’s 10% Bitcoin threshold suggests potential additional purchases in line with its treasury strategy. The company’s commitment to Bitcoin as a strategic asset class reflects a growing trend among publicly traded companies seeking to diversify their balance sheets with digital assets.
In conclusion, Méliuz’s foray into the Bitcoin market represents a bold step towards embracing the future of finance and underscores the company’s forward-thinking approach to capital allocation and risk management.