Tech
The MicroStrategy Ripple Effect: DeFi Technologies Announces Bitcoin Treasury Strategy
KEY POINTS
- The company said it views Bitcoin as a “reasonable hedge against inflation”
- Recent additions to the corporate list of BTC holders are Semler Scientific and Metaplanet
- MicroStrategy has been buying Bitcoin for years and has a huge stash of over 214,000 BTC
Michael Saylor’s MicroStrategy appears to have influenced another company to implement a Bitcoin strategy to help grow the business as publicly traded DeFi Technologies announced Monday that it has adopted the world’s largest cryptocurrency by market capitalization as its primary treasury reserve assets.
To kickstart that strategy, DeFi Technologies purchased 110 Bitcoin worth approximately $7.4 million based on current prices. “DeFi Technologies believes in it [Bitcoin] it has unique characteristics such as scarce and limited assets, making it a reasonable hedge against inflation and a safe haven from currency devaluation,” the company said in a press release.
DeFi Technologies further added that it believes Bitcoin is a “preferable alternative” to traditional assets due to its resilience in both digital and architectural aspects. Additionally, the huge value gap between the digital asset and other traditional assets makes BTC potentially capable of generating outsized returns as more and more people use the cryptocurrency.
Olivier Roussy Newton, CEO of DeFi Technologies, noted that Bitcoin has been the best performing asset over the past 10 years and that the company’s adoption of a BTC strategy for its treasury reserves reflects its confidence in the token as a hedge against inflation.
News of the latest company joining the growing list of firms adopting a Bitcoin strategy comes more than a week after non-crypto firm Semler Scientific revealed it purchased BTC to help promote your business.
Notably, the health technology company said it sees Bitcoin as a “safe haven amid global instability” due to its growing use by consumers around the world. Growing consumer embrace of the digital asset was further demonstrated after the US Securities and Exchange Commission (SEC) approved Bitcoin spot ETFs in January, Semler Scientific pointed out.
On the same day, Japanese infrastructure company Web3 Metaplanet said it had purchased $1.6 million worth of BTC, in addition to its previous Bitcoin purchases. It’s worth noting that Metaplanet was a real estate-focused company before branching out and providing Web3 consulting services, among others.
Metaplanet, which said it “unequivocally prioritizes a Bitcoin-first and Bitcoin-only approach,” has implemented a strategy more in line with Bitcoin’s maximalist MicroStrategy.
Before companies started grabbing Bitcoin as part of efforts to build their corporate treasuries, MicroStrategy led the way in accumulating as much BTC as possible. The technology company founded by Saylor has been buying the asset for years regardless of market sentiment and price action.
As of April 26, 2024, MicroStrategy has purchased 214,400 Bitcoins. It describes itself as the largest known corporate holder of Bitcoin in the world.