DeFi Technologies Embraces Bitcoin as a Treasury Reserve Asset, Acquires 110 BTC
Andrew Throuvalas
Last updated: June 10, 2024 18:57 EDT | 1 min read
DeFi Technologies, a crypto-focused investment provider, made waves on Friday by purchasing 110 BTC for its corporate reserves, leading to a surge in the company’s stock price.
Bitcoin Strategy of DeFi Technologies
In a press release on Monday, the Canadian company announced that Bitcoin will now serve as its “primary treasury reserve asset,” making it the first Canadian public company to take this step amidst a growing trend among global firms.
“Bitcoin has emerged as a significant asset class with a market value exceeding $1 trillion,” stated the company. “DeFi Technologies sees it as a unique asset with scarcity and finite characteristics, making it a viable hedge against inflation and a safe haven from monetary devaluation.”
Following the footsteps of other firms, DeFi Technologies’ stock, traded on Cboe Canada under the DEFI ticker, surged by 25% to CAD $220 at the close of Monday’s trading session. The company’s market cap stood at $641 million by the end of the day.
According to the company’s website, DeFi Technologies offers “institutional grade exposure to digital assets through ETPs, strategic ventures, and essential Web3 infrastructure.” Valour, the company’s subsidiary ETF provider, manages assets worth CAD $837 million (USD $607 million).
DeFi Technologies offers various crypto ETPs, including a Bitcoin ETF with zero fees and another that provides investors with over 5% annual yield.
“Due to the significant value difference between Bitcoin and traditional assets, DeFi Technologies believes that Bitcoin has the potential to yield substantial returns as its acceptance grows,” the company added.
Growing Adoption of Bitcoin Among Corporations
DeFi Technologies also owns Reflexivity Research, a crypto market intelligence firm co-founded by crypto influencers Anthony Pompliano and Will Clemente. In a tweet on Monday, Pompliano confirmed that his company, Pomp Investments, remains an investor in DeFi Technologies and considers the company undervalued.
In the past two months, several firms, including US healthcare company Semler Scientific and Japanese investment firm MetaPlanet, have chosen to adopt Bitcoin as their primary cash reserve, following MicroStrategy’s lead.
Both MetaPlanet and Semler have indicated a willingness to leverage capital markets to raise funds for additional BTC purchases, rather than solely relying on corporate profits. As of now, DeFi Technologies does not have similar plans.
MicroStrategy remains the largest corporate investor in Bitcoin, managing 214,400 BTC.
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