DeFi Technologies adopts Bitcoin as primary treasury asset

DeFi Technologies Inc., a Canadian financial technology company, has adopted Bitcoin (BTC) as its main treasury reserve asset. The company announced the purchase of 110 Bitcoins, valued at approximately CAD 10.5 million (US$7.6 million), for the strategy.

According to DeFi Technologies, due to Bitcoin’s limited supply and its status as a scarce commodity, investors can effectively protect themselves against inflation and currency devaluation by investing in this asset. DeFi Technologies prefers Bitcoin due to its digital structure over traditional assets.

Thus, DeFi Technologies sees considerable differences between the value of Bitcoin and other traditional assets. Specific opportunities that the company described include that Bitcoin is recognized as the best-performing asset of the decade. However, at the time of writing, BTC was trading at US$69,400.92 a decrease of 0.34% in 24 hours.

BTC/USD 24-hour price chart (Source: Coinmarketcap)

DeFi Technologies subsidiary Valor reported assets under management (AUM) of CAD 837 million ($607 million) as of May 31, 2024, representing a year-on-year increase of 64.9%. Additionally, Valor repaid an additional $5 million in outstanding loans secured by Ethereum (ETH) collateral.

The company maintained a strong cash balance of approximately CAD 69.9 million ($51 million) at the end of May 2024. Debt payments and Bitcoin purchases were funded by revenues from the DeFi Alpha trading desk, which generated approximately CAD 113.8 million (US$83.4 million). million) in the second quarter of low-risk trading. Valor has introduced several innovative exchange-traded products (ETPs), including the Valor Internet Comp

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