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BTC · 5w

Another one: Mode adopts Bitcoin as treasury reserve asset

Mode has allocated up to 10 per cent of its cash reserves to purchase Bitcoin and adopt it as a treasury reserve asset.

The move is part of the FinTech group's long-term goal to protect investors' assets from currency debasement. With UK interest rates at a record low of 0.1 per cent, Mode is also seeking to diversify away from low-interest money market instruments in order to maximise the value of returns from its recent fundraising.

Mode is the first publicly listed company in the UK to make a significant purchase of Bitcoin as part of its treasury investment strategy. This follows announcements by Square and Microstrategy in the US, which disclosed significant purchases of an aggregate value of $475 million worth of Bitcoin.

Since inception, Mode stated that it has recognised 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.

Executive chairman Jonathan Rowland commented: "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."

Go to fstech.co.uk
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