Shareholding company Mode Global relies on Bitcoin as cash reserve

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FRANKFURT (Schroders) – Government measures to promote healthy eating, particularly with regard to the spread of Covid-19, are providing a headwind to the food and beverage industry and increasingly to the food retail and hospitality sector.
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MicroStrategy sets a precedent: UK-based Mode Global Holdings has announced a „significant purchase“ of Bitcoin Superstar in a press release.

On several occasions, we at BTC-ECHO have reported on the growing popularity of Bitcoin as a cash reserve. Now Mode Global Holdings PLC, a company listed on the London Stock Exchange, joins the ranks of prominent advocates of this strategy. Mode Global Holdings PLC issued a press release talking about plans for a „significant purchase“ of Bitcoin as part of its treasury investment strategy.

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The announcement reveals that Mode Global Holdings plans to convert 10 percent of its cash reserves into Bitcoin. This is seen as part of a longer-term strategy to „protect investors‘ assets from currency devaluation. The timing is probably no accident. Interest rates in Great Britain are at a record low of 0.1 percent.

Mode Global Holdings apparently wants to maximize the returns from its recent IPO. Therefore, the move away from inflation-prone fiat money and low-interest money market instruments seems only logical.

Given the challenges of COVID-19 and British 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.

MicroStrategy action finds imitators

As mentioned at the beginning, Mode Global is not alone with these plans. According to several media reports, the US stock exchange company MicroStrategy acquired more than 21,000 BTC in August this year. This is a full 0.1 percent of the total Bitcoin offering. This purchase, worth the equivalent of 250 million US dollars, which is almost a fifth of the market value of MicroStrategy, was of course not without resonance in the scene. But that wasn’t all, as MicroStrategy added to its portfolio in mid-September. The company acquired a further 16,796 BTCs worth the equivalent of 175 million US dollars.

Meanwhile, the payment service provider Square also underscored its crypto ambitions with a Bitcoin investment and purchased 4,709 BTC for 50 million US dollars.

Exactly how high the investment amount will be in the case of Mode Global is not clear from the press release. Mode is the first UK listed company to officially announce a significant purchase of Bitcoin as part of its treasury investment strategy. One of the company’s objectives is to further increase the transparency and credibility of digital bonds. It wants to offer investors of all kinds the opportunity to invest in a new generation Fintech.