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.
- 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 leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.