Méliuz Aims to Raise 450 Million Reais for Bitcoin Purchase

Brazilian fintech Méliuz has announced a share offering aimed at raising up to 450 million reais ($78.6 million) to purchase more Bitcoin. The company, which trades on Brazil's B3 exchange under the ticker CASH3, initially plans to offer 17 million common shares to raise 150 million reais ($26.2 million). The offering has the potential to expand by up to 200%, potentially tripling the amount if demand materializes.

This move marks a significant step in Méliuz's transformation from a traditional fintech into what it calls Brazil's first Bitcoin treasury company. Since March, when the company announced a $4.13 million purchase, Méliuz has accumulated 320.2 BTC worth approximately $33.55 million at current prices. The company was one of the first Brazilian fintechs to offer crypto exposure to its clients and has been strategically increasing its involvement with the crypto industry.

Méliuz's strategy involves repositioning its purpose to maximize the amount of Bitcoin per share, rather than just allocating part of its cash to Bitcoin as a hedge against inflation or currency devaluation. The company's Bitcoin holdings currently show a modest 3% profit, with an average purchase price of $101,575 per coin. The company paid slightly above market rate for its initial 45.72 BTC purchase in March, buying at an average of $90,926 when prices were climbing.

Pricing for the Méliuz offering is set for June 12, with trading of new shares beginning June 16. The company has scheduled two priority subscription periods for existing shareholders—the first beginning June 4 after a June 3 cutoff date, and the second ending June 10 after a June 9 cutoff—giving them first dibs on the new shares. This move is seen as a shift away from its core business, but the company's stock has seen the hype and benefits, working out for them.

Founded in 2011, Méliuz built its business on cashback rewards and discount coupons, partnering with over 1,000 brands and accumulating 35 million registered users. The company started offering Bitcoin exposure to clients back in 2022 when PayPal and other companies showed positive results experimenting with crypto purchases. The company's credit card expanded its financial services footprint beyond simple shopping rewards, and pioneered the “cryptoback” feature, letting users obtain cashback in BTC for their purchases. That feature is no longer available.

Méliuz's move follows the vision set by Strategy, a U.S. software firm that pioneered the Bitcoin treasury playbook, accumulating over $60 billion worth of the cryptocurrency through repeated capital raises. During bull runs, MicroStrategy's stock has outperformed Bitcoin itself, creating what some call a "Bitcoin proxy" for traditional investors. However, Méliuz operates at a different scale, with its market cap hovering around 305 million reais ($53.8 million), a fraction of its 9 billion reais peak after going public in 2020.