DeFi Technologies Acquires More Bitcoin for Treasury Strategy
DeFi Technologies, a prominent Canadian fintech company, recently added to its Bitcoin holdings as part of its treasury strategy. The company announced the purchase of 94.34 BTC, supplementing the 110 BTC it initially acquired last month. Additionally, DeFi Technologies expanded its portfolio to include altcoins, acquiring 12,775 SOL tokens and 1,484,148 CORE tokens for the first time.
DeFi Technologies’ Cryptocurrency Holdings
With the latest acquisitions, the total value of DeFi Technologies’ crypto assets now stands at $10 million. According to Curtis Schlaufman, the VP of Communications at DeFi Technologies, each asset serves a specific purpose in the company’s treasury. Bitcoin functions as a reliable store of value and a hedge against inflation, while Solana offers high transaction throughput and low fees, making it ideal for various decentralized applications.
- Bitcoin – a store of value and inflation hedge
- Solana – high transaction throughput and low fees
- CORE tokens – innovative staking solutions and Bitcoin scaling
The primary subsidiary of DeFi Technologies, Valour, operates multiple crypto ETPs in Europe. These ETPs are not as widely accepted on North American public markets due to regulatory constraints. The company’s standout products include Bitcoin and Solana ETPs, generating yield by staking users’ assets within the funds. Despite Bitcoin’s blockchain not typically supporting staking, DeFi Technologies can stake its BTC using the Core network, which shares blockchain security features with Bitcoin.
- Bitcoin and Solana ETPs
- Staking users’ assets for yield
- Utilizing Core network for staking Bitcoin
DeFi Technologies recently reported holding $49.3 million in cash, along with 110 BTC and $13 million in outstanding loans.
Embracing the MicroStrategy Approach
Following its decision to designate Bitcoin as its primary treasury reserve asset, DEFTF shares experienced a significant surge. Notable figures in the crypto space, such as Will Clemente, have praised the company, considering it undervalued and misunderstood. Will Clemente’s research firm was acquired by DeFi Technologies earlier this year.
Russell Starr, the Head of Capital Markets at DeFi Technologies, likened the company’s approach to Bitcoin to that of MicroStrategy, a trailblazer in corporate Bitcoin adoption. MicroStrategy’s stock has surged by 127% year to date, while DEFTF has seen a 190% increase in its stock value.
Similarly, MetaPlanet, often referred to as the “MicroStrategy of Japan,” has witnessed a remarkable 681% surge in its stock price since the beginning of the year. Like MicroStrategy, MetaPlanet leverages capital markets and debt to acquire BTC. In contrast, DeFi Technologies aims to maintain minimal debt levels in its operations.
Hot Take: Growing Interest in Crypto
As companies continue to explore cryptocurrency as part of their treasury strategies, DeFi Technologies stands out with its recent acquisitions and diversified portfolio. The addition of altcoins alongside Bitcoin indicates a broader interest in different digital assets for this year.
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