Cryptocurrency News

Latin American Conglomerate Adds Bitcoin to its Reserves

The Bitcoin bulls are feeling rejuvenated and enthusiastic after the latest declaration from Mercado Libre. This is an Argentina-based online marketplace organization that boasted an annual income of $844.4 million in 2020. The company officials recently disclosed that they have invested in $7.8 million worth of Bitcoin in the first quarter of 2021. The news has been confirmed by the SEC filling documentation.

The company officials referred to Bitcoin as an ‘indefinitely-lived intangible asset’ that has been added to their balance sheet. It seems that adding Bitcoin is part of the treasury strategy for the ongoing fiscal year. Mercado Libre’s addition to Bitcoin has made it the 36th institutional investor that holds a huge Bitcoin reserve. The Latin American company has joined the exclusive club with names like MicroStrategy, Tesla Inc., Square Inc., and many others.

The Much Anticipated and Long-Term Business Association of Mercado Libre with Bitcoin

The recent Bitcoin acquisition of Mercado Libre is not a huge surprise. The company has a long-standing history with cryptocurrencies and Bitcoin. Last month, the e-commerce giant made the flagship cryptocurrency payment available for its real estate branches operating in prime locations of Argentina. Marcos Galperin, CEO of the group, has referred to Bitcoin as a better store of value than gold.

He also disclosed that he holds the top digital asset in his capacity in the past. The company has recently purchased about 120- 130 Bitcoins, a number that can be expected to increase after some time. Mercado Libre is a public trading company that is listed on NASDAQ under ticker MELI.

More Non-American Institutions Taking an interest in Bitcoin

NEXON Co. Ltd. is an online gaming developer and distributor based in Japan. The gaming enterprise has announced an investment of 11.1 billion yen into Bitcoin. Owen Mahoney, CEO and president of NEXON, said in the official report that the company has decided to add Bitcoin to its balance sheet to preserve its shareholders’ value and maintain the purchasing power for cash assets.

Mahoney further added that Bitcoin offers a keen sense of stability for the long-run and accessible liquidity. He ascribed these qualities to directly proportional relation with cash value for other organization’s investments. Currently, the company holds about 1,717 Bitcoin valued at 100 million USD.    

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