First UK Public Listed Company, Mode Global Holdings, Converts 10% of Cash Reserves into Bitcoin

With a “significant purchase of Bitcoin as part of its treasury investment strategy,” Mode has joined the movement. And the BTC price spiked!

What started with public listed company MicroStrategy has now become a movement as more and more companies continue to join the ranks.

This month, after Square, now comes the London stock exchange-listed company Mode Global Holdings that is making an investment into Bitcoin.

In its press release, Mode announces it to be “the first publicly listed company in the UK” to make a “significant purchase of Bitcoin as part of its treasury investment strategy.”

The company allocates 10% of its cash reserves into Bitcoin and adopts the leading digital asset as a “treasury reserve asset” as part of its long-term goal to protect its investors’ assets from currency debasement.

However, the company didn’t disclose how much Bitcoin it is exactly planning to buy. While as per the company's cash balance, by the end of June, the allocation only amounts to less than 7 BTC, the company raised £7.5 million on IPO (pre expenses), which puts it at about 75 BTC.

“As Mode Global Holdings is a PLC, the allocation should be transparent on the balance sheet, so it's odd that specific amount is withheld at this stage,” noted Jason Deane, an analyst at Quantum Economics.

Bitcoin is the Way to Diversify

With the UK's interest rates falling to a record low of 0.1%, the company was looking to diversify, which brought them to Bitcoin.

According to Mode, it always recognized Bitcoins’ potential as a reliable store of value and an attractive investment because of its safe-haven status and asymmetric risk/reward attributes. Jonathan Rowland, Executive Chairman at Mode said,

“This decision to allocate part of our cash reserves to Bitcoin is a further step in our mission to build a truly digital financial services business, combining the best of digital assets, payments, loyalty, and investment.”

Rowland sees Bitcoin as a vehicle for “financial empowerment,” in which his confidence only increased after facing the challenges of COVID-19. He said,

“Today’s allocation is executed through a modern, forward-looking but prudent treasury management strategy.”

The company further shared that their mission is to bring transparency and credibility to the digital asset space. It has also built a mobile app to buy, sell, and hold Bitcoin.

Also Read: BTC Price & PYPL Stocks Rejoice as PayPal Announces Support for Bitcoin, Ether, BCH & LTC

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AnTy
AnTy
AnTy has been involved in the crypto space full-time for over two years now. Before her blockchain beginnings, she worked with the NGO, Doctor Without Borders as a fundraiser and since then exploring, reading, and creating for different industry segments.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

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