Mode Global Holdings – a fintech company based in the United Kingdom – has announced that it will convert roughly ten percent of its cash holdings into bitcoin. By doing so, Mode will become the first publicly traded enterprise in the UK to do so.
Mode Is Setting a New Standard
As time has gone by, more and more companies are showing interest in bitcoin and want to get their fingers on BTC units given that they believe the asset is far more stable than the US dollar or other forms of fiat due to the economic strife caused by the coronavirus. At the time of writing, companies such as MicroStrategy and Square have purchased millions of dollars in bitcoin, while Stone Ridge is the latest venture to make this move with a buy of more than $100 million.
While Mode may not be purchasing bitcoin in the same way, it’s converting quite a bit of its dollar reserves into BTC, which will give it access to a huge wad of digital currency and likely place it on the same scale as firms like MicroStrategy and Square. Following the announcement that it would be turning to BTC for future financial needs, Mode’s stock rose by nearly ten percent. Clearly, the news was well received by its customers and outside traders alike.
As it stands, Mode is currently worth close to $50 million. It recently earned nearly $10 million through a London Stock Exchange listing a few weeks ago. The company’s founder Jonathan Rowland explained in a recent interview:
We said ‘let’s hold ten percent of our assets in bitcoin to start with,’ because it made sense, and yesterday it made sense. I think over 12 months, if we raise further capital, or if we have excess capital, I’d like to increase it. I had a board of directors who held me back a little bit. I wanted to go a bit more than ten percent, but that’s fine to start with. We can dip our toe in.
Seeing BTC in a Different Light
Rowland’s attraction to bitcoin came rather late in life. During the interview, he explained that he wasn’t a huge fan at first, and that he didn’t quite trust it the way he did cash. However, now that the coronavirus pandemic has set in, he’s beginning to see the asset as a means of potentially hedging one’s wealth against inflation and other serious problems. He explained:
Bitcoin for me was an interesting concept ten years ago. I didn’t believe in it particularly. I thought it was a scam. I thought it was a Ponzi scheme, but I started to read. I started to read for about two or three years on the subject and I then decided that for bitcoin, there was a case for a global currency that was the money of the internet.
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Source: Live Bitcoin News