UK-Listed Firm Mode Putting Up to 10% of Cash Reserves Into Bitcoin

Mode said it's the first U.K.-listed firm to invest in bitcoin as part of its treasury management strategy.

Oct 21, 2020 at 8:22 a.m. UTC
Updated Sep 14, 2021 at 10:12 a.m. UTC

Mode Global Holdings PLC, a London Stock Exchange-listed company, has announced plans to make a "significant purchase" of bitcoin as part of its treasury investment strategy.

  • In a press release on Wednesday, the fintech group said it will convert up to 10% of its cash reserves into the cryptocurrency as part of a long-term strategy to "protect investors' assets from currency debasement."
  • With interest rates in the U.K. at a record low of 0.1%, Mode said it would also seek to diversify away from low-interest money market instruments to maximize the value of returns from its recent initial public offering.  
  • "Faced with the challenges of COVID-19 and with U.K. 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," said Jonathan Rowland, Mode's executive chairman.
  • "Today's allocation is executed through a modern, forward-looking but prudent treasury management strategy," he added.
  • With the news, the company follows MicroStrategy and Jack Dorsey's Square in deciding to place a portion of their treasury reserves into bitcoin.
  • MicroStrategy put $425 million into bitcoin, according to a series of disclosures, while Square invested $50 million.
  • Mode said it recognized the potential of bitcoin as "a reliable store of value and an attractive investment due to the asset's asymmetric risk/reward attributes and safe haven status."
  • The firm did not disclose a cash value of the bitcoin allocation.
The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
CoinDesk - Unknown
Binance's Bahrain License Upgraded for More Crypto Services

Binance Bahrain was granted a preliminary license in December and full license in March.

Binance Bahrain was granted a preliminary license in December and full license in March.

CoinDesk - Unknown
2
CoinDesk - Unknown
Gaming DAO Merit Circle and YGG Caught in DAO Governance Strife

Merit Circle members want to refund Yield Guild Games' investment and cancel an agreement between the two, claiming there’s not been enough value-add by the gaming guild giant.

Merit Circle members want to refund Yield Guild Games' investment and cancel an agreement between the two, claiming there’s not been enough value-add by the gaming guild giant.

CoinDesk - Unknown
3
CoinDesk - Unknown
Former Binance Execs Create $100M Fund to Spur Crypto Adoption in Emerging Markets: Report

Old Fashion Research was formed by Ling Zhang and Wayne Fu, previously Binance's vice president of M&A and head of corporate development respectively.

Old Fashion Research was formed by Ling Zhang and Wayne Fu, previously Binance's vice president of M&A and head of corporate development respectively.

CoinDesk - Unknown
4
CoinDesk - Unknown
Solana, Dogecoin Tokens Dip as Futures Suggests Bearish Sentiment

Choppy trading in broader markets failed to temper a gradual dip in major cryptocurrencies, with some sliding as much as 8% in the past 24 hours.

Choppy trading in broader markets failed to temper a gradual dip in major cryptocurrencies, with some sliding as much as 8% in the past 24 hours.

CoinDesk - Unknown