Mercadolibre, a Latin American e-commerce giant, announced that it added cryptocurrency to its balance sheet and raised $ 7.8 million worth of bitcoin. In addition, the publicly traded company announced that it has also accepted Bitcoin as a payment method.
Consumers can now pay in Bitcoin for the purchase of goods and services purchased through the American e-commerce website.
The Argentina-based company said in an earnings report that the purchase of Bitcoin came in the final quarter that ended in March and was part of the company’s treasury strategy.
The online merchant, who works with the BitPay, Georgia-based payment service provider, plans to enable cryptocurrency services on its platform.
Plus, Mercadolibre launched a new real estate platform just for Bitcoin last week.
The online retailer integrated Bitcoin into its MercadoPago payment platform in 2015. Currently, Brazilian consumers are using the MercadoPago platform to pay for Uber, subway rides, and utility bills.
With its Bitcoin investment and the integration of crypto into its platform, the company’s commitment to digital assets appears fruitful.
Mercadolibre – the largest e-commerce retailer in Latin America – is listed on the Nasdaq stock exchange and trades under the ticker symbol MELI. The company has a market capitalization of over $ 76 billion.
The online merchant’s decision to invest in Bitcoin and accept it as a payment method legitimizes the cryptocurrency. More than 3000 brands or stores are known to conduct their business within the Mercadolibre ecosystem in the area. The retailer is widespread in countries like Brazil, Mexico and Argentina.
Better to hold bitcoin than cash
Mercadolibre is the youngest publicly traded company to add Bitcoin to its balance sheet. Although Bitcoin purchases are small compared to Tesla ($ 1.5 billion) or MicroStrategy ($ 2.2 billion), Mercadolibre’s investment shows a strong move towards mainstreaming cryptocurrencies as a reliable investment and payment method.
More and more publicly traded companies, including Square Payment Company, Tesla Motor Vehicle Manufacturing Company, MicroStrategy Software Company, MassMutual Insurance Company, and others, have added Bitcoin as part of their capital allocation strategy to maximize the long-term value of investments for their shareholders. Such investments show that Bitcoin is a reliable store of value and an attractive security value with more long-term appreciation potential than cash.
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