UK Fintech Holding Adopts Bitcoin as Part of Its Treasury
The company acquired Bitcoin as a part of its long-term strategy to protect investors’ assets from the fiat currency depreciation. The interest rates environment is still harsh in the United Kindom with interest rates sitting at the 326-year lows of 0.1%.
Mode Global Holdings is the first UK’s publicly listed company to announce making Bitcoin a legitimate part of its treasury investment strategy. The company which develops its own digital banking app for fiat and cryptocurrencies sees Bitcoin as a reliable store of value.
Moreover, as stated in a report, it has a mission “to bring further transparency and credibility to the digital asset space and offer everyday investors the opportunity to buy shares in an early-stage fintech building next-generation products.”
The fintech giant got listed on the London Stock Exchange this September and raised £7.5 million (around $9.8) during the first day of trading. Its market capitalization is £41 million ($5.3 million) at the time of publishing.
Not the first in the industry
The move from Mode Global Holding comes just weeks after United States fintech giants like MicroStrategy and Square poured hundreds of millions into Bitcoin as a part of their treasure investment strategies.
As DailyCoin reported earlier, MicroStrategy, the U.S. business intelligence company invested over $425 million in Bitcoin. The company chose Bitcoin as a store of value investment and the hedge against the uncertainty during the global pandemic.
Accordingly, Square which is one of the U.S. largest payment processing companies invested $50 million or 1% of its total assets into Bitcoin the same month.
Mode’s news came the same day as another major announcement this week when Paypal confirmed it is entering the cryptocurrency market and launching its cryptocurrency services.
The news sparked positive reactions across the cryptocurrency markets. Bitcoin’s (BTC) price jumped by nearly $1.000 in the 24 hours up to $12.970 on Thursday and continued to rally up to $13.160 on October 23, according to the data of CoinGecko.
The Mode’s stocks rallied accordingly. The stock price increased from £46 ($60.19) to £51 ($66.7) within a day confirming the fact, that Bitcoin is already making a positive effect on publicly listed companies.
With more and more companies adopting Bitcoin as their treasury reserve asset and having a mutually beneficial effect, the upcoming institutional FOMO might seem like a highly possible option.