DeFi Technologies adopts Bitcoin as its 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, worth approximately CAD 10.5 million ($7.6 million), as part of the strategy.

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

Therefore, DeFi Technologies sees notable differences between the value of Bitcoin and other traditional assets. Company-specific opportunities described include that Bitcoin is recognized as the best performing asset of the decade. However, at the time of writing this article, BTC was trading at $69400.92 a decrease of 0.34% in 24 hours.

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

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

As of the end of May 2024, the company maintained a solid cash balance of approximately CAD 69.9 million ($51 million). The debt repayments and Bitcoin purchases were funded by revenue from the DeFi Alpha trading desk, which generated approximately CAD 113.8 million ($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

Read also: Bitcoin network fees increase due to high transaction volumes

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