DeFi Technologies Plans to Launch Validator Node and Stake $100M in Bitcoin
Toronto-based DeFi Technologies is gearing up to introduce a validator node on Core Chain and stake approximately $100 million in Bitcoin (BTC). The company’s subsidiary, Valour, will not only validate transactions but also earn staking rewards for its involvement, as stated in a recent press release on Tuesday.
The staking process will be carried out using Core Chain’s Ethereum Virtual Machine-compatible consensus mechanism on its layer-1 BTC-powered blockchain. By staking 1,498 BTC and participating in network consensus, DeFi Technologies aims to bridge traditional finance with cutting-edge blockchain technology, according to CEO Olivier Roussy Newton.
Stakers will have custody of their BTC holdings during the lockup period and will receive rewards in CORE tokens, which will be reinvested in the product. Staked CORE tokens will yield a reward of 11.66%. To ensure transaction security and blockchain integrity, 50% of the BTC mining hash power will be allocated to the Core Chain.
The collaboration between DeFi Technologies and Core Chain marks the second phase of their partnership. Previously, they jointly launched the Valour Bitcoin Staking exchange-traded product (ETP) on the Nordic Growth Market exchange, using the Swedish krona as the base currency. The Valour ETP offers exposure to BTC with a 5.65% yield and a 1.9% management fee, with plans to introduce a Core ETP for yield through BTC staking.
DeFi Technologies has recently shifted its focus towards Bitcoin, adopting it as the primary treasury reserve asset and purchasing 110 BTC as part of its new strategy. This move led to a notable 23% increase in the company’s share price. As of May 31, DeFi Technologies had a cash balance of $51 million, while Valour managed $607 million in assets under management (AUM), showing significant growth from $274 million in mid-March 2022.
In the past few months, various firms, including Semler Scientific and MetaPlanet, have also chosen Bitcoin as their primary savings vehicle for excess cash, signaling a growing trend of companies turning to BTC as a strategic asset.
