As a seasoned crypto investor with a keen interest in fintech companies, I have been closely monitoring DeFi Technologies (DEFTF) and its strategic moves in the crypto space. The recent announcement of their acquisition of additional Bitcoin (BTC) and new altcoins for their treasury has piqued my curiosity.
A rising Canadian fintech firm, DEFI Technologies (DEFTF), has recently purchased a significant amount of Bitcoin (BTC), following its decision to integrate Bitcoin into its treasury strategy last month.
On Thursday, the company disclosed that it had bought an additional 94.34 Bitcoins, bringing its total holdings to 204.38 BTC. Furthermore, the firm revealed its entrance into the altcoin market with the acquisition of 12,775 Solana tokens and 1,484,148 Chainlink tokens as new additions to its assets.
DeFi Technologies’ Bitcoin Treasury
At current prices, the total value of DeFi Technologies’ recently acquired crypto is $10 million.
According to Curtis Schlaufman, DeFi Technologies’ VP of communications, speaking with CryptoPotato, each asset in their treasury provides unique benefits: Bitcoin functions as a stable store of value and shield against inflation. In contrast, Solana delivers impressive transaction speeds at affordable costs, making it an excellent choice for various decentralized applications.
Valour, the primary business entity of DeFi Technologies, provides a significant number of cryptocurrency Exchange-Traded Products (ETPs) in Europe. However, European regulators have been more open to approving these ETPs compared to their counterparts in North America.
As a crypto investor, I would describe it this way: The company’s most robust offerings are its Bitcoin and Solana Exchange-Traded Products (ETPs). By staking users’ assets within these funds, the firm generates income. Although Bitcoin’s blockchain typically doesn’t include staking, this company manages to stake its Bitcoins using the Core network. The Core network is an integral part of Bitcoin’s infrastructure and inherits some of its security features from the Bitcoin blockchain.
“Schlaufman stated that CORE’s advanced Bitcoin staking offerings and commitment to enhancing Bitcoin’s scalability significantly boost our capacity to earn returns and engage in the wider Decentralized Finance (DeFi) market.”
According to DeFi Technologies’ latest update, their balance sheet as of last week included $49.3 million in cash, 110 Bitcoins, and an outstanding loan balance of $13 million.
The MicroStrategy Playbook
Last month, DEFTF’s shares experienced a surge following the company’s announcement that it had adopted Bitcoin as its major treasury reserve asset. Notable crypto analysts like Will Clemente, whose research firm was bought by DeFi Technologies in January, have praised the company as being “underappreciated” and “undervalued.”
The Head of Capital Markets at DeFi Technologies, Russell Starr, shares a comparable perspective on Bitcoin as MicroStrategy (MSTR). Being the pioneer publicly-traded company to fully embrace Bitcoin, MSTR has experienced a remarkable growth of 127% year-to-date. Meanwhile, DeFi Technologies has seen an impressive surge of 190%.
MetaPlanet, referred to as Japan’s MicroStrategy equivalent, has experienced an astonishing 681% increase in stock value since the beginning of the year. Similar to MicroStrategy, MetaPlanet utilizes capital markets and borrowing to purchase Bitcoin, while DeFi Technologies focuses on minimizing debt.
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2024-07-18 21:44