Meliuz recently announced a new strategy that will allow for increased yields from Bitcoin, which is held as part of the Ministry of Finance. Brazilian companies leverage options at pre-defined strike prices to acquire Bitcoin and continue to profit from market volatility.
Meliuz Expanding the Ministry of Finance with cashbacked Bitcoin options
Meliuz, a pioneer in establishing a Bitcoin Strategic Reserve in Latam, has announced a new strategy to continue acquiring Bitcoin with a low-risk approach. The company will leverage these derivatives and Bitcoin volatility to implement a new option-based strategy that will expand over 600 Bitcoin stashes.
According to local media, Meliuz will begin selling Put Options at certain strike prices. For example, if Meliuz sells options contracts for Strike Price and Bitcoin exceed that number for $95,000, the company will retain the premium after the contract is executed.
Conversely, if Bitcoin jumps under the strike price, Meliuz will have to buy more BTC at that strike price. Nevertheless, the company estimates there are no strategic losses associated with the operation, as the aim is to accumulate more Bitcoin.
Meriz explains:
In this case, the company will use cash already reserved to acquire Bitcoin at a potentially attractive price. This is a strategy that matches the long-term Bitcoin accumulation policy.
These options are supported with less than 10% of your operational cash reserve to avoid potential risks. Meliuz argues that the new option strategy is also supported by “professional partners” in such operations, but does not disclose the names of these institutions.
The company believes this new strategy will help you reach your goals easily, and the results of these operations will be disclosed quarterly in our financial statements.
Meliuz, a primarily cashback company, is exploring other ways to continue making money using Bitcoin. Diego Kolling, head of Meliuz’s Bitcoin strategy, suggests a new direction for the company, commenting that companies that assign Bitcoin to the Lightning network can win up to 25% per year.
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