Mode Global Holdings, listed on the London Stock Exchange, announced a “significant investment” in bitcoin as part of its investment strategy update.
According to the press release, Mode has converted up to 10% of its cash reserves into cryptocurrency as part of a long-term strategy of “protecting investors’ assets from currency depreciation.” With UK interest rates at record lows of 0.1%, Mode said it will seek to diversify away from low interest rate money market instruments to maximize the return on its recent IPO.
“After we faced the challenges of the coronavirus and UK interest rates at their lowest level in the Bank of England’s 326-year history, our confidence in the long-term value of bitcoin has only increased,” said Mode chairman Jonathan Rowland. Rowland). “Today’s asset allocation is carried out with a modern, forward-looking but smart asset management strategy.”
Mode recognizes bitcoin’s potential as “a reliable savings and investment vehicle, thanks to its asymmetric risk / reward attributes and defensive asset status.” The firm did not disclose information about the amount of BTC purchased and their value in fiat currency.
Recall that at the beginning of the month, Twitter founder Jack Dorsey announced the purchase of his payment company Square 4709 BTC for $ 50 million. Earlier, MicroStrategy CEO Michael Saylor announced the purchase of BTC . The total amount invested by this company in BTC is about $ 425 million.