DeFi
DeFi Technologies (DEFTF) Buys Additional $6 Million in Bitcoin, Doubles Its BTC Holdings
DeFi Technologies (DEFTF) – a fast-growing Canadian fintech company – has acquired another large batch of Bitcoin (BTC) after making the asset a core part of its treasury strategy last month.
The company announced on Thursday that it purchased an additional 94.34 BTC for its balance sheet, adding to the 110 BTC it acquired in June. The company also announced an expansion into altcoins, purchasing 12,775 SOL tokens and 1,484,148 CORE tokens for the first time.
DeFi Technologies Bitcoin Treasure
At current prices, the total value of the crypto recently acquired by DeFi Technologies is $10 million.
“Each asset brings distinct benefits and capabilities to our treasury,” Curtis Schlaufman, VP of Communications at DeFi Technologies, told CryptoPotato. “Bitcoin serves 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 range of decentralized applications.”
DeFi Technologies’ main subsidiary, Valour, offers dozens of crypto ETPs in Europe that regulators are more hesitant to allow on public markets in North America.
The company’s most successful products are its Bitcoin and Solana ETPs, from which it generates yield by staking users’ assets within the two funds. While the Bitcoin blockchain does not typically offer staking, the company can still stake its BTC using the Core network, which inherits some of the security of its Bitcoin blockchain.
“CORE’s innovative staking solutions and focus on Bitcoin scaling further enhance our ability to generate yield and participate in the broader DeFi ecosystem,” Schlaufman said.
Last week, DeFi Technologies reported holding $49.3 million in cash on its balance sheet, along with 110 BTC and $13 million in outstanding loans.
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Last month, DEFTF shares soared when it announced the creation of Bitcoin as its “primary Treasury reserve asset.” Many popular crypto analysts, including Will Clemente — whose research firm was acquired by DeFi Technologies in January — have greeted the company as being “misunderstood” and “undervalued.”
Russell Starr, head of financial markets at DeFi Technologies, said his company’s vision for Bitcoin is similar to that of MicroStrategy (MSTR) – the first publicly traded company to bet on Bitcoin. MSTR is up 127% year-to-date, while DEFTF is up 190%.
Meanwhile, Japan’s so-called “MicroStrategy”, MetaPlanethas seen its stock price jump 681% since the beginning of the year. Like MicroStrategy, MetaPlanet relies on financial markets and leverage to acquire BTC, while DeFi Technologies tries to keep its debt to a minimum.