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Mode Global prides on being the first publicly traded company in the United Kingdom to invest in Bitcoin.
London Stock Exchange-listed company Mode Global Holdings PLC (LSE: MODE) announced on Wednesday that it has allocated up to 10% of its cash reserves to purchase Bitcoin beside adopting it as its treasury reserve asset.
At the time of writing, MODE shares were trading around €45.44 having dropped approximately 0.13% in the past 24 hours.
The move by the company to put part of its cash in Bitcoin is a noble initiative that could shield itself from deteriorating fiat interest rates. Whereby, the interest rate in the United Kingdom stood at 0.1% nearing zero and perhaps negative depending on the future market scope. Having a diversified cash portfolio especially in Bitcoin highly guarantees the company and its investors of future returns.
Bitcoin and Mode Global among Other Institutional Investors
Bitcoin has proven beyond a reasonable doubt that it can withstand market pressures as observed in the past few months when traditional stocks were brought to the knees by the coronavirus pandemic.
Notably, Mode Global prides on being the first publicly traded company in the United Kingdom to invest in Bitcoin. However, there are other global companies that have taken a similar approach including Square and MicroStrategy.
The two American companies invested millions of their capital in Bitcoin under the same mission as Mode Global. MicroStrategy has so far purchased Bitcoins worth over half a billion dollars with Square owning Bitcoins worth over $50 million. Not only has Mode Global invested in Bitcoin, but it has also developed a mobile application to enable its customers to buy, sell, and hold bitcoin.
This is set to see the crypto adoption scaled up in both retail investors and also institutional investors who are likely to follow the path of Mode Global in the near future.
Jonathan Rowland, Executive Chairman at Mode, commented that the decision to allocate part of the company’s cash reserves to Bitcoin is a further step in its 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,” said he in the press release.
Notably, Bitcoin jumped approximately 4% during Tuesday’s trading session and the asset is now fixed above the $12k level comfortably.
Trading at $12,192.79 at the time of reporting, Bitcoin was retesting a strong resistance level that it rebounded in August.