Mode, the LSE-listed Fintech Group has allocated up to 10% of its cash reserves to purchase Bitcoin and adopt it as a treasury reserve asset.
The move is part of Mode’s 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 maximise the value of returns from its recent fundraising.
It means the firm is the first publicly listed company in the UK to officially announce a significant purchase of Bitcoin as part of its treasury investment strategy.
Jonathan Rowland, Executive Chairman at Mode, 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.
“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.”
To support its vision, Mode has built an easy-to-use mobile application that allows people to easily buy, sell and hold Bitcoin and grow their holdings via one of the highest-yielding and most flexible interest-generating Bitcoin products in the market. Mode’s consumer products enable everyday investors to access the benefits of Bitcoin in a secure and seamless way.
