Brazilian Fintech’s Bitcoin Gamble Backfires—Investors Flee as Stock Plummets 8%

Another day, another crypto casualty. Méliuz—the Brazilian fintech darling—just learned the hard way that mixing traditional markets with Bitcoin volatility is like juggling chainsaws. Their ’bold’ crypto strategy triggered an instant 8% shareholder exodus. Who could’ve seen that coming?

Wall Street analysts are already sharpening their knives. ’Innovation’ meets desperation? Maybe just stick to cashback rewards next time.

Raising Capital to Buy More Bitcoin

Méliuz disclosed its intention to raise up to 450 million Brazilian reais (approximately $78.6 million) through a share offering. The company initially plans to offer 17 million common shares in an effort to collect 150 million reais ($26.2 million). If investor interest proves strong, the offering could expand by as much as 200%, pushing the total potential capital raised to more than triple the initial amount.

The capital would be used to increase its bitcoin holdings, which already stand at 320.25 BTC—valued at around $33.55 million based on current market prices. The company first added Bitcoin to its balance sheet in March 2025 with an investment of $4.13 million. This new share sale indicates a deeper commitment to Bitcoin as a core reserve asset.

While some see the MOVE as forward-thinking, others expressed concerns about dilution and the shift away from Méliuz’s traditional business.

Shares Drop as Investors React

The immediate market response was harsh. Shares of Méliuz, traded under the ticker CASH3 on Brazil’s B3 exchange, fell by more than 8%, closing at 8.13 reais. Trading volume surged to over 6.5 million shares as news of the share sale spread and investors digested the implications.

This comes after a strong performance earlier in 2025. Méliuz’s stock had risen around 217% since the beginning of the year, reaching a multi-year high NEAR 11 reais before Friday’s drop. The sharp decline reflects growing unease over the company’s evolving focus and how the Bitcoin strategy may affect long-term shareholder value.

A Shift in Business Philosophy

Méliuz has made clear that this is more than just a financial move—it represents a fundamental change in its corporate mission. According to the company, the aim is no longer simply to hedge against inflation or currency risks. Instead, it now wants to maximize the amount of Bitcoin per share, aligning its value proposition more closely with Bitcoin’s long-term potential.

The firm emphasized this shift in a previous statement, framing the Bitcoin acquisition as central to its future strategy. The company had already taken early steps in the crypto space, offering Bitcoin exposure to clients as early as 2022. Now, with its own balance sheet increasingly tied to the digital asset, Méliuz is charting a course more akin to a crypto-native firm than a traditional cashback platform.

Founded in 2011, Méliuz built its brand on offering rewards and discounts in partnership with over 1,000 retail brands. Its user base includes more than 35 million registered users across Brazil. The recent shift to Bitcoin represents a major turn from its original business model.

Following the Strategy Blueprint

Industry experts see Méliuz’s actions as a clear imitation of Strategy’s approach. The U.S.-based software firm gained global attention by acquiring over 580,000 BTC, turning its stock into a proxy for Bitcoin exposure. The model has worked well during crypto bull markets, with Strategy’s share price often outperforming Bitcoin itself due to investor demand.

Ray Nasser, head of BlockFills’ Latin America operations, noted that Méliuz appears to be following the same script. “The company was losing relevance, but now it’s capitalizing on Bitcoin interest. Strategy has proven the model can work,” he said.

Still, differences between the two companies are significant. Strategy is a large U.S. corporation with substantial cash reserves and institutional backing. Méliuz, by contrast, has a market cap of just 305 million reais ($53.8 million), a far cry from its 2020 peak of 9 billion reais.

Pricing and Subscription Timeline

Pricing for the new shares is scheduled for June 12, with trading expected to begin on June 16. Existing shareholders will have two priority subscription periods: the first beginning on June 4 (after a June 3 cutoff) and the second ending on June 10 (after a June 9 cutoff). These windows give current investors the first chance to participate before shares are offered more broadly.

Although the capital raise introduces immediate dilution, the company hopes that long-term value from Bitcoin holdings will offset the short-term downside. Bitcoin Treasuries data indicates Méliuz’s current holdings are showing a modest 3% profit, with an average purchase price of $101,575 per BTC.

Their initial Bitcoin acquisition in March was made slightly above market value, with 45.72 BTC purchased at an average of $90,926 per coin—when prices were trending upward.

Market Reactions Mixed

Reactions across financial circles have been divided. Supporters argue that Méliuz is positioning itself ahead of the curve by aligning with a global trend of Bitcoin integration. Critics, however, see the move as a risky departure from a proven business model that may alienate investors who prefer traditional fintech operations.

“This is a shift away from its core business, but its stock has seen the HYPE and benefits. It’s working out for them so far,” said Nasser.

Final Thoughts

Méliuz is not just investing in Bitcoin—it is redefining its identity around it. While the market’s reaction shows there’s still skepticism about this new direction, the company’s bold move could make it a leader in Latin America’s corporate crypto adoption. Whether this strategy leads to long-term growth or volatility remains to be seen, but one thing is clear: Méliuz is betting big on Bitcoin, and it’s not looking back.