Mode Global Holdings, the London Stock Exchange-listed Fintech Group, has announced that it has allocated up to 10% of its cash reserves to purchase Bitcoin while adopting it as a treasury reserve asset.
The move into Bitcoin comes as a result of record low interest rates of 0.1% in the UK, with speculation mounting over the potential over negative interest rates in the future.
According to a press release shared with Coin Rivet, Mode is also trying to maximise the potential of its assets after it recent completely a fundraising round.
Mode becomes the first publicly listed company in the UK to officially announce a notable purchase of Bitcoin as part of its treasury investment strategy.
Its decision to purchase Bitcoin comes after announcements from the likes of Square and Microstrategy, with both companies investing $50 million and $475 million respectively.
Today, we are proud to join @Square and @MicroStrategy in announcing we have allocated up to 10% of our cash reserves to purchase #Bitcoin and adopt it as a treasury reserve asset. Read our full story here: https://t.co/CU642JTfcj pic.twitter.com/6LqbzoEVNJ
— mode_banking (@mode_banking) October 21, 2020
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.
“We truly believe that Bitcoin is a vehicle for financial empowerment and, through Mode, investors can gain exposure to this highly attractive asset class through a listed and fully compliant company. Faced with the challenges of COVID and with UK 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.
“Today’s allocation is executed through a modern, forward-looking but prudent treasury management strategy.”
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