A Little Bit of Bitcoin
On May 5, the world learned Argentina-based Mercado Libre grabbed up its own little bit of Bitcoin–a cool $7.8 million worth of the leading crytocurrency.
The announcement came not as a statement but more subtly in their 2021 Q1 filing. The eCommerce giant whose name in Spanish means literally “free market” has, according to its earnings report, net revenues for its first quarter of $1.4 billion, a 111.4 percent year-over-year increase.
The filing does not indicate when the purchase was made nor how much it cost the company, but it does make a strong statement about putting faith in digital assets. Mercado Libre says that adding such digital assets is all part of their treasury strategy.
In Good Company
While the purchase may not be in the same league as MicroStrategy, which holds $5.2 billion worth of Bitcoin, nor Tesla with $2.4 billion even after shedding 10 percent of its holdings, it does put the U.S.-incorporated company in good company. Other firms that have made large purchases in recent months include Square as well as Canadian fintech firm Mogo which purchased $1.5 billion in late 2020.
Mercado Libre, which trades on Nasdaq and MELI and which represents some 3,000 stores and brands, first opened its online marketplace to Bitcoin purchases in October of 2019. Recently the company has added a new section including scores of properties in Argentina and Uruguay which can only be purchased with cryptocurrencies.