Marti, a major Turkish ride-hailing company, is making waves by allocating 20% of its reserve funds to cryptocurrency, starting with Bitcoin. This bold move is a direct response to Turkey’s high inflation rates, which are eroding the value of the Turkish Lira.
Hedging Against Inflation
The company’s CEO, Oguz Oktem, explained that this strategy is designed to protect against the risks associated with holding cash in a volatile currency. They plan to increase their crypto holdings to 50% eventually. Importantly, Marti stressed that only surplus funds, not operational capital, are being used for this investment. They’re also planning to add Solana and Ethereum to their crypto portfolio in the future. This approach is similar to that of other large companies who have already invested heavily in Bitcoin.
Marti’s Impressive Growth
Marti’s decision comes on the heels of significant growth. The company recently surpassed 2 million riders and 300,000 drivers, with over 35 million rides completed. This success gives them the confidence to pursue long-term hedging strategies without compromising their growth trajectory.
Going Public and Navigating Volatility
Marti’s listing on the New York Stock Exchange in July 2023 made it the first Turkish micro-mobility company to achieve this milestone. The company’s crypto investment has generated mixed reactions from investors, highlighting the inherent volatility of the cryptocurrency market.
Risk Management and Transparency
To mitigate risks, Marti is using a regulated custodian to store its digital assets, minimizing the chances of hacks and regulatory issues. However, fluctuations in Bitcoin’s price could impact their earnings reports. Marti commits to transparent reporting of its crypto holdings in future financial statements.
Future Plans and Expansion
Currently operating in major Turkish cities like Istanbul and Ankara, Marti plans to expand its services to several more cities before the end of the year. They offer a range of electric vehicles, accessible through their app.