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

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.

STORY CONTINUES BELOW

Recommended for you:

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.

Disclosure

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

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. CoinDesk has adopted a set of principles aimed at ensuring the integrity, editorial independence and freedom from bias of its publications. CoinDesk is part of the Bullish group, which owns and invests in digital asset businesses and digital assets. CoinDesk employees, including journalists, may receive Bullish group equity-based compensation. Bullish was incubated by technology investor Block.one.