DeFi Technologies, a Canadian fintech company, has been making significant moves in the cryptocurrency space recently. The company has acquired a large batch of Bitcoin (BTC) to add to its balance sheet, following its decision to make the asset a core part of its treasury strategy last month. In addition to the 110 BTC it purchased in June, DeFi Technologies announced the acquisition of another 94.34 BTC. Moreover, the company has expanded into altcoins, purchasing 12,775 SOL tokens and 1,484,148 CORE tokens for the first time. The total value of the recently acquired crypto for DeFi Technologies now stands at $10 million.
According to Curtis Schlaufman, VP of communications at DeFi Technologies, each asset brings distinct advantages and capabilities to the company’s treasury. Bitcoin is seen as a reliable store of value and hedge against inflation, while Solana offers high transaction throughput and low fees, making it suitable for a wide array of decentralized applications. DeFi Technologies’ core business subsidiary, Valour, offers numerous crypto ETPs in Europe, a market where regulators are more open to such products compared to North America.
The company’s strongest products are its Bitcoin and Solana ETPs, which allow DeFi Technologies to generate yield by staking users’ assets within both funds. While Bitcoin’s blockchain typically does not support staking, the company is able to stake its BTC using the Core network, which benefits from part of its blockchain security from Bitcoin. Schlaufman mentioned that CORE’s innovative staking solutions and focus on Bitcoin scaling further enhance their ability to generate yields and participate in the broader DeFi ecosystem.
As of last week, DeFi Technologies disclosed that it held $49.3 million in cash on its balance sheet, along with 110 BTC and $13 million in outstanding loans. Shares in DEFTF surged after the announcement of Bitcoin as its primary treasury reserve asset. The company has been praised by crypto analysts, with some calling it “misunderstood” and “undervalued.” DeFi Technologies’ Head of Capital Markets, Russell Starr, compared the company’s view of Bitcoin to that of MicroStrategy (MSTR), the first publicly traded company to heavily invest in BTC. While MSTR is up 127% year to date, DEFTF has seen an impressive 190% increase in its stock value.
Similar to MicroStrategy, the “MicroStrategy of Japan,” MetaPlanet, has also experienced a surge in its stock price, up 681% since the beginning of the year. MetaPlanet, like MicroStrategy, leverages capital markets and debt to acquire BTC. On the other hand, DeFi Technologies is focused on minimizing its debt while investing in Bitcoin and other cryptocurrencies.
DeFi Technologies’ recent acquisitions of Bitcoin and altcoins, along with its focus on yield generation and staking opportunities, highlight the company’s strategic approach to navigating the crypto space. With a strong financial standing and positive market performance, DeFi Technologies is positioning itself as a key player in the evolving world of decentralized finance.
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