DeFi Technologies Joins Corporate Bitcoin Trend with Acquisition of 110 BTC

June 11, 2024 BACK TO NEWS

Canadian investment provider DeFi Technologies has made a strategic move by acquiring 110 BTC for its corporate reserves, becoming the first Canadian public company to designate Bitcoin as its primary treasury reserve asset. This decision aligns with the growing trend among global firms to diversify their reserves with cryptocurrency.

DeFi Technologies Embraces Bitcoin

In a press release issued on Monday, DeFi Technologies highlighted Bitcoin's status as a major asset class with a market value exceeding $1 trillion, emphasizing its attributes as a scarce and finite asset that serves as a hedge against inflation and monetary debasement. The acquisition of Bitcoin underscores the company's commitment to capitalizing on the potential for outsized returns in the cryptocurrency market.

Following the announcement, DeFi Technologies' stock, traded on Cboe Canada under the ticker DEFI, surged 25% to CAD $220 at Monday's close, with a market cap reaching $641 million. This move reflects investor enthusiasm for the company's strategic shift towards Bitcoin as a treasury reserve asset.

Expanding Influence in Crypto Market

DeFi Technologies, through its subsidiary ETF provider Valour, manages assets worth CAD $837 million (USD $607 million), providing institutional-grade exposure to digital assets through exchange-traded products (ETPs), strategic ventures, and critical Web3 infrastructure. The company offers a range of crypto ETPs, including a Bitcoin ETF with zero fees and a product offering over 5% yield per year to investors.

Moreover, DeFi Technologies owns Reflexivity Research, a crypto market intelligence firm founded by renowned crypto influencers Anthony Pompliano and Will Clemente. Pompliano, in a tweet on Monday, affirmed his investment in DeFi Technologies, expressing confidence in the company's undervalued position in the market.

Joining the Corporate Bitcoin Standard

DeFi Technologies joins a growing cohort of companies, including MicroStrategy, Semler Scientific, and MetaPlanet, in adopting Bitcoin as a primary savings vehicle for excess cash reserves. While MicroStrategy remains the largest corporate Bitcoin investor, with 214,400 BTC under management, DeFi Technologies' decision signals a broader acceptance of cryptocurrency within corporate treasury strategies.

As the corporate adoption of Bitcoin continues to gain momentum, DeFi Technologies' move underscores the increasing recognition of cryptocurrency's role as a valuable asset class with long-term growth potential.