Victor Ugochukwu · Dec 14, 2020 . 5min read
U.K.’s Mode invests 10% of its treasury reserves in Bitcoin
Mode is the first publicly traded U.K. company to announce significant Bitcoin holdings. It will hold up to 10% of its treasury in Bitcoin.
By Komal Joshi · Oct 21, 2020 . 5min read
Today, U.K. fintech Mode Global Holdings declared that it would hold up to ten percent of its treasury reserves in Bitcoin. The cryptocurrency investment makes Mode the first publicly traded company in the U.K. to declare notable Bitcoin holdings.
According to the reports, with interest rates in the U.K. at a record low of 0.1%, Mode states it would also attempt to diversify away from low-interest money market instruments to maximize the number of returns from its current IPO. With the announcement, Mode follows an expanding number of publicly traded companies, newly declaring productive Bitcoin investments. Additionally, it involves U.S. software giant MicroStrategy and payment processing platform Square.
Mode’s Bitcoin Banking App enables easy trading of Bitcoin.
Mode, which has developed a Bitcoin banking app, was listed on the London Stock Exchange exchange prior this month. Moreover, it says that its Bitcoin allocation is part of a long-term strategy to preserve investors’ assets from currency debasement. It allows people to quickly buy, sell, and hold Bitcoin while creating income on their investment. Mode raised £7.5 million on its first day of trading on the London Stock Exchange. Additionally, the company’s market cap recently stands at £36.64 million ($46.9 million).
Mode has identified Bitcoin’s potential as a stable store of value and an attractive investment due to the asset’s asymmetric risk or reward characteristics and safe-haven status. Moreover, as one of the leading companies with a customer-facing Bitcoin offering to list on the LSE Main Market, Mode’s purpose is to bring further transparency and reliability to the digital asset space. It intends to provide the everyday investors with the possibility to purchase shares in an early-stage fintech building next-generation products.
However, Microstrategy made headlines throughout the world last month when it purchased $425 million in BTC. The decision was described as a significant stamp of institutional approval in the cryptocurrency as a mature, safe-haven asset. The trend implies that public companies are no longer distant to Bitcoin as a hedge in a frequently uncertain economy.
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