UK-based Fintech has announced that it will buy Bitcoin using its reserves. Mod Global Holdings, already a bitcoin-friendly card finance company, has become the first UK publicly traded company to lend a portion of its reserve money to cryptocurrency. The announcement follows the announcements of Micro strategy and Square. As many cryptocurrency industry observers suspect.
Following the declaration is micro strategy and square. As many cryptocurrency industry observers suspect, the August revelation of micro strategy now seems to inspire others.
Currency disbursement forces the mod to deposit 10% of the cash reserve
First, there was Michael Sailor’s micro strategy. Then came Jack Dorsey's Square. Both companies include BTC in their balance sheets for inflation and financial crisis.
Mode is the latest ad-listed company to understand the importance of Bitcoin. UK Fintech announced the decision in a press release on Wednesday, October 21st.
Mode reportedly allowed Bitcoin 10% of the money on its balance sheet. Corona epidemic in the context of global macroeconomic outlook drives uncertainty.
The company says Bitcoin allocation is an attempt to protect investors' assets from currency debasement. Its justification cites a record low UK interest rate of 0.1%.
The company recently completed an IPO and raised $ 7.5 million. The press release states that the decision to invest in Bitcoin is an attempt to "increase the value of the revenue" from its IPO.
Despite recent investments in Bitcoin, Mode is no stranger to digital assets. It calls itself the "Bitcoin Banking Application". It sells BTC as well as the ability to generate interest from holdings.
Another public company seeks refuge in BTC
As mentioned, Mode was the first publicly listed company to acquire exposure in Bitcoin. This change was made clear by Micro strategy CEO Michael Sailor. In 2013, Sailor publicly rejected Bitcoin on Twitter:
Although Bitcoin previously appeared to represent a tool for criminals, it is now becoming a tidal wave of macro uncertainty. Like the mod in the context of unprecedented corona virus stimulus packages around the world, Micro strategy and Square cited their own concerns about Fiat currency debasement.
The nature of these businesses lends itself to such investments. Square and Mode are well acquainted with the cryptocurrency industry, offering BTC exposure for a while.
In terms of micro-strategy, the board of directors alone controls 72% of the voting power of the five-powered Michael Sailor. Therefore, micro strategy is more likely to invest in BTC compared to other companies that are generally listed.
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