DeFi Technologies Adopts Bitcoin as Primary Treasury Asset

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

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

Thus, DeFi Technologies notes considerable differences between the value of Bitcoin and that of other traditional assets. Company specific opportunities describe include that Bitcoin is recognized as the best performing asset of the decade. However, at the time of writing, BTC was trading at $69,400.92 a drop of 0.34% in 24 hours.

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

DeFi Technologies subsidiary Valor reported assets under management (AUM) of 837 million CAD ($607 million) as of May 31, 2024, representing an annual 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 repayments and Bitcoin purchases were funded by revenue from DeFi trading desk Alpha, which generated approximately 113.8 million CAD ($83.4 million). million) in the second quarter from low-risk transactions. Valor has introduced several innovative exchange-traded products (ETPs), including Valor Internet Comp

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