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November 27, 2022
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Mercado Livre, Latin American e-commerce giant, buys $ 7.8 million bitcoin

Free market, Latin American e-commerce giant, buys $ 7.8 million bitcoin. In addition, the publicly traded company has announced that it also accepts Bitcoin as a form of payment.

Consumers can now pay in Bitcoin for purchases of goods and services purchased through the American e-commerce site.

The Argentine-based company said in a earnings report that the Bitcoin purchase took place in the last quarter ended in March and was part of the company’s treasury strategy.

The online retailer, in partnership with BitPay-based payment service provider Georgia, plans to enable cryptocurrency services on its platform.

In addition, Mercado Livre launched a new exclusive real estate platform for Bitcoin last week.

The online retailer integrated Bitcoin into its MercadoPago payment platform in 2015. Currently, Brazilian consumers use the MercadoPago platform to pay for Uber, subway trips and utility bills.

With its investment in Bitcoin and integration of cryptocurrency into its platform, the company’s involvement in the digital assets sector looks fruitful.

Mercado Livre – the largest e-commerce retailer in Latin America – is listed on the Nasdaq stock exchange and is traded under the symbol MELI. The company has a market capitalization of more than $ 76 billion.

The online retailer’s decision to invest in Bitcoin and accept it as a payment method legitimizes the cryptocurrency. More than 3,000 brands or stores are known for conducting their business within the Free Market ecosystem in the region, and the retailer is widely popular in countries such as Brazil, Mexico and Argentina.

Bitcoin is better than holding money

Mercado Livre becomes the last publicly traded company to add Bitcoin to its balance sheet. Although the purchase of Bitcoins is small compared to Tesla ($ 1.5 billion) or MicroStrategy ($ 2.2 billion), the Free Market investment indicates a major step towards integrating cryptocurrencies as a reliable investment and payment method.

A growing number of publicly traded companies, including payment company Square, motor vehicle manufacturing company Tesla, software company MicroStrategy, insurance company MassMutual and others, have added Bitcoin as part of their capital allocation strategy to maximize the long-term value of investments for its shareholders. These investments show that Bitcoin is a reliable store of value and an attractive hedge asset with greater potential for long-term appreciation than money.

Source: BlockchainNews

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