March 3, 2021

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UK Fintech Company Mode Adopts Bitcoin as Treasury Reserve Asset

Following MicroStrategy’s move to adopt Bitcoin as a primary treasury reserve asset, more publicly-traded companies are now using the cryptocurrency for the same purpose.

Just recently, Mode Global Holdings, a UK-based Fintech company, revealed that it is currently making plans to include Bitcoin to its treasury investment strategy. 

This was announced in a press release today, where the company said that it is planning to protect the assets and funds of its investors from fiat debasement by purchasing Bitcoin with up to 10% of its cash reserves.

Mode also plans to diversify its investments from low yield interest markets following the fall of interest rates in the UK to record low of 0.1%. The company hopes the move would help maximize the returns from its recent IPO.

Speaking on the development, Jonathan Rowland, Executive Chairman of Mode,  said,

We truly believe that Bitcoin is a vehicle for financial empowerment and, through Mode, investors can gain exposure to this highly attractive asset class through a listed and fully compliant company. Faced with the challenges of COVID and with UK interest rates at the lowest level in the Bank of England’s 326-year history, our confidence in the long-term value of Bitcoin has only increased.

He added, ” Today’s allocation is executed through a modern, forward-looking but prudent treasury management strategy.” The company, however, did not disclose the actual amount of Bitcoin it would purchase as part of its treasury investment strategy.

The company said it has been a firm believer in the potential of Bitcoin as an attractive investment asset with a reliable store of value and it seeks to increase the transparency and credibility of Bitcoin by providing investors with the opportunity of buying the digital asset easily.

Mode is notably the first UK publicly-traded company to announce a Bitcoin purchase as part of its treasury investment strategy. It follows after Microstrategy and Square, who had allocated part of their cash reserve to Bitcoin, about $425 million and $50 million respectively.

See Also: Asset Manager Stone Ridge Discloses $115 Million in Bitcoin HoldingsPaypal Bitcoin crypto

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Original Article
Author: Obike Favour