DeFi Technologies Makes Bold Move, Acquires 110 BTC as Treasury Reserve Asset
By: Andrew Throuvalas
Updated: June 10, 2024 18:57 EDT
| Reading Time: 1 min
In a strategic move, DeFi Technologies, a crypto-focused investment provider, announced the purchase of 110 BTC for its corporate reserves on Friday, leading to a surge in the company’s stock price.
Embracing Bitcoin
DeFi Technologies revealed in a recent press release that Bitcoin will now serve as its primary treasury reserve asset, marking it as the first Canadian public company to do so among a growing number of global firms.
With a market value exceeding $1 trillion, DeFi Technologies views Bitcoin as a valuable asset class due to its scarcity and finite nature, making it a reliable hedge against inflation and a safe haven from monetary devaluation.
Following in the footsteps of other companies, DeFi Technologies’ stock, listed on Cboe Canada as DEFI, experienced a 25% surge, closing at CAD $220 on Monday, with a market cap of $641 million.
The company, known for providing institutional-grade exposure to digital assets through ETPs, strategic ventures, and essential Web3 infrastructure, boasts Valour, its subsidiary ETF provider, with assets under management totaling CAD $837 million (USD $607 million).
DeFi Technologies offers numerous crypto ETPs, including a Bitcoin ETF with zero fees and another that yields over 5% annually for investors.
Looking Ahead
Recognizing the significant value gap between Bitcoin and traditional assets, DeFi Technologies believes in the potential for Bitcoin to deliver substantial returns as it garners more widespread acceptance.
Along with its recent Bitcoin acquisition, DeFi Technologies also owns Reflexivity Research, a crypto market intelligence firm co-founded by crypto influencers Anthony Pompliano and Will Clemente. Pompliano confirmed his investment in DeFi Technologies through Pomp Investments and highlighted the company’s undervalued status.
While other companies like Semler Scientific and MetaPlanet have embraced Bitcoin as their primary savings vehicle, DeFi Technologies has not disclosed plans to raise funds through capital markets for further BTC purchases, unlike these firms.
MicroStrategy remains the largest corporate Bitcoin investor, managing 214,400 BTC, setting the standard for others in the corporate world.
