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First Publicly Traded Company in the UK Allocates 10% of Cash Reserves to Bitcoin (BTC)

October 22, 2020

Mode Global Holdings, a publicly listed fintech company in the UK, has decided to adopt Bitcoin as a treasury reserve asset, funneling 10% of its cash reserves into the crypto giant.

In a press release, Mode officially announces its move to purchase Bitcoin as part of its treasury investment strategy. With interest rates the lowest they’ve ever been in the Bank of England’s 326-year history, Mode says this is a long-term goal to protect investors’ assets from currency debasement.

“With UK interest rates at a record low of 0.1%, Mode is also seeking to diversify away from low-interest money market instruments in order to maximize the value of returns from its recent fundraising.” 

Following in the footsteps of U.S-based firms Square and MicroStrategy, which both announced large Bitcoin purchases in recent months, Mode is the first publicly-traded company in the U.K to officially adopt Bitcoin as a large part of its investment strategy.

“Mode has 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. As one of the first companies with a consumer-facing Bitcoin offering to list on the LSE Main Market, Mode’s mission is to bring further transparency and credibility to the digital asset space and offer everyday investors the opportunity to buy shares in an early-stage fintech building next-generation products.”

Mode executive chairman Jonathan Rowland says their decision to allocate part of their assets in Bitcoin is the next step toward building a truly digital financial service and providing their investors with an uncorrelated asset that has weathered the financial crisis brought about by the pandemic.

“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.”

Though Mode’s move is the latest sign of the corporate adoption of BTC, its market cap is well under that of MicroStrategy and Square, and stands at about $48.5 million.

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