Tech
DeFi Technologies Adopts Bitcoin as Treasury Reserve
DeFi Technologies Inc., a leading Canadian financial technology (fintech) company, has adopted Bitcoin (BTC) as its primary treasury reserve asset. This strategic move involves an initial purchase of 110 BTC, which signifies the company’s integration of traditional capital markets with decentralized finance (DeFi).
The decision is in line with the broader trend of companies seeking portfolio diversification and alternative revenue streams in an ever-changing economic environment.
DeFi technologies invest in Bitcoin as a hedge against inflation
Recognizing Bitcoin as a major asset class with a market value exceeding $1 trillion, DeFi Technologies considers it an effective hedge against inflation. The scarcity, finite nature, digital resilience, and stability of Bitcoin’s architecture make it a more attractive option than traditional assets. Olivier Roussy Newton, CEO of DeFi Technologies, expressed the company’s confidence in Bitcoin.
“We have adopted Bitcoin as the Treasury’s primary reserve asset, reflecting our confidence in its hedging role inflation and a safe haven from currency devaluation. As the best performing asset over the past decade, Bitcoin offers significant short- and long-term potential to expand the company’s treasury,” Newton noticed.
To know more: 7 best platforms to buy Bitcoin (BTC) with Canadian dollars
DeFi Technologies’ latest venture has attracted the attention of notable figures in the cryptocurrency industry. Anthon Pompliano, a prominent Bitcoin advocate and founder and partner of investment management firm Morgan Creek Digital Assets, shared his thoughts on the company’s move.
“Bitcoin is slowly infiltrating the coffers of public companies around the world. We remain shareholders in DeFi Technologies (DEFTF) and believe the business is still undervalued,” he said he wrote on X (Twitter).
DeFi Technologies’ decision comes amid significant monetary policy changes. Recently, the The Bank of Canada (BoC) has decided to lower the reference rate from 5% to 4.75%, with the aim of easing the burden on heavily indebted consumers.
Lower interest rates make borrowing cheaper for both consumers and businesses. This change potentially leads to increased spending and investment.
Lower interest rates can also mean reduced capital costs for companies like DeFi Technologies. Furthermore, as returns on safer investments decline, the the attractiveness of alternative assets like Bitcoin increases.
Matteo Greco, research analyst at Fineqia, shared his thoughts on this perspective. – underlined Greco Bitcoin’s potential to act as a leveraged version of gold for those who believe in its store of value characteristics.
To know more: How to invest in Bitcoin?
According to him, considering Bitcoin as a store of value makes sense for portfolio allocation. While gold has historically preserved purchasing power with stability, it offers limited performance. Bitcoin, in contrast, can be seen as a leveraged version of gold for those who believe in it in its potential as a store of value.
“Over the past 15 years, Bitcoin has steadily increased in value relative to fiat currencies, albeit to a greater extent volatility. Investors who accept the possibility of short-term withdrawals have found that Bitcoin is an extremely valuable investment in the medium to long term,” he told BeInCrypto.
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