Brazilian Fintech Firm Méliuz Plans $78M Equity Offering to Buy Bitcoin, Shares Plunge

Méliuz, a prominent Brazilian fintech company boasting over 30 million users, is undertaking a significant capital-raising initiative. The company announced a public share offering aiming to secure up to R$450 million (approximately $78 million USD) to bolster its Bitcoin holdings. This strategic move underscores Méliuz’s increasing commitment to Bitcoin as a core asset.

The offering details include an initial issuance of 17 million common shares, with a potential expansion to 51 million shares depending on investor demand. This offering is exclusively targeted towards professional investors both domestically and internationally, streamlining the process through automatic registration rules. A unique feature of this offering is the inclusion of free subscription warrants. Each share purchased grants investors a package of warrants, divided into ten series, allowing them to acquire additional shares at predetermined prices in the future.

Based on current share prices, Méliuz anticipates raising around $26 million. However, this figure could significantly increase to approximately $78 million if the overallotment option is fully exercised. Along with the shares, investors will receive 50.6 million warrants, with a potential total issuance reaching 152 million under maximum subscription conditions. This substantial warrant allocation further incentivizes participation in the offering.

The capital raised will be directly invested in Bitcoin, solidifying its position as a “primary strategic asset” within Méliuz’s treasury. This strategy builds upon the company’s earlier announcement in March, where it allocated 10% of its cash reserves to Bitcoin. The company’s current Bitcoin holdings stand at 320.2 BTC.

The share offering has already impacted the market. Méliuz’s shares experienced a significant drop of over 8% on the day of the announcement. Trading of warrants is slated to commence on June 16th, with share settlement and crediting of bonus instruments scheduled for June 18th. This capital injection, fueled by the Bitcoin investment strategy, positions Méliuz for future growth and expansion within the increasingly dynamic fintech and cryptocurrency landscapes.