DeFi Technologies Embraces Bitcoin as Primary Treasury Reserve Asset, Buys 110 BTC

  • MicroStrategy’s Bitcoin treasury strategy has inspired a similar move in Canada.
  • DeFi Technologies has adopted Bitcoin as its primary treasury reserve asset.
  • The company made its initial purchase public, acquiring 110 BTC worth approximately CAD $10.5 million.

DeFi Technologies adopts Bitcoin as its primary treasury reserve asset, reflecting its belief in Bitcoin’s potential as a hedge against inflation and monetary debasement. Learn more about this significant investment strategy.

DeFi Technologies Embraces Bitcoin as Primary Treasury Reserve Asset

DeFi Technologies, trading on Cboe Canada under the ticker “DEFI,” has announced a bold move to adopt Bitcoin as its primary treasury reserve asset. This decision aligns it with other global public companies that see Bitcoin as a viable hedge against inflation and a safeguard against monetary debasement.

A Strategic Purchase of 110 BTC

In a strategic shift, DeFi Technologies initiated this new policy by purchasing 110 Bitcoins, with a combined value of CAD $10.5 million (USD $7.6 million). The announcement had an immediate positive effect on the company’s stock, which surged 26% on Monday, raising its stock price to CAD $2.01 and its total market cap to $588 million.

Crypto-Native Company with Expanding Influence

DeFi Technologies has been a significant player in the cryptocurrency space, offering various crypto-related investment products. Its subsidiary, Valour, manages assets worth CAD $837 million, including a new Bitcoin ETP that provides a 5.65% annual yield.

Leadership in Crypto Investment

With Bitcoin’s increasing acceptance, DeFi Technologies sees the cryptocurrency as an asset with tremendous growth potential. The company’s ownership of Reflexivity Research, co-founded by noted Bitcoin influencers Will Clemente and Anthony Pompliano, enhances its market intelligence and strategic positioning.

Widespread Adoption of Bitcoin in Corporate Treasuries

The adoption of Bitcoin by public companies is becoming more widespread. MicroStrategy has been a pioneer in this arena, amassing 214,400 BTC, valued at approximately $15 billion. This strategy is now being emulated by companies across various sectors, including Japan’s MetaPlanet and the healthcare firm Semler Scientific.

Conclusion

DeFi Technologies’ decision to incorporate Bitcoin as a central component of its treasury reflects a broader trend of Bitcoin adoption among public companies. This strategy underscores the belief in Bitcoin’s potential as a hedge against inflation and its ability to provide significant returns as it gains wider acceptance. Investors and onlookers will be watching closely to see how this move impacts DeFi Technologies’ performance and valuation in the volatile crypto market.

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