Mode Global Holdings PLC, a London Stock Exchange-listed firm, has revealed its plans to form a “significant purchase” of bitcoin as a part of its treasury investment strategy.
Within an official press-release published, the fintech group added that it’ll convert up to 10% of its cash reserves into the cryptocurrency as a part of a long-term strategy to “protect investors assets from currency debasement.”
With interest rates within the U.K. at a record low of 0.1%, Mode said it might also seek to diversify faraway from low-interest market instruments to maximize the worth of returns from its recent IPO.
“Faced with the challenges of COVID and with UK interest rates at rock bottom level within the Bank of England’s 326-year history, our confidence within the long-term value of Bitcoin has only increased,” added Jonathan Rowland, Mode’s executive chairman.
“Today’s allocation is executed via a modern, forward-looking but prudent treasury management strategy,” he added.
With the news, the firm follows Microstrategy and Jack Dorsey’s Square choose to put some of their treasury reserves into bitcoin.
MicroStrategy invests $425 Mln into bitcoin, consistent with a series of disclosures, while Square invested $50 Mln.
Mode said that it recognized the potential of Bitcoin as “a reliable store useful and a beautiful investment due to the asset’s asymmetric risk/reward attributes and shelter status.”
The firm didn’t disclose a cash value of the bitcoin allocation.