Canadian Firm DeFi Technologies Stock Rally Amid Bitcoin Treasury Strategy
Canadian-based firm DeFi Technologies, which is also the parent entity for exchange-traded fund (ETF) issuer Valour, announced Bitcoin adoption as the treasury reserve asset.
DeFi Technologies is replicating the approach by Michael Saylor, who chairs MicroStrategy, by adding Bitcoin treasury. The addition affirms that the Bitcoin acquisition playbook is now present in Canada, given its adoption by a local crypto-oriented entity that has adopted Bitcoin as the primary treasury reserve asset.
DeFi Technologies is listed on the Toronto headquarters of Cboe Canada and is trading under the DEFI ticker. The firm joins the expanding list of public entities betting big on Bitcoin for reasons similar to those of its predecessors, led by MicroStrategy.
Canadian-based DeFi Technologies Purchases 110 Bitcoin
DeFi Technologies profiled Bitcoin as possessing unique characteristics, citing scarcity and finite numbers. The Canadian firm indicated via the Monday, June 10 press release that Bitcoin traits make it a reasonable hedge against inflation, terming it a haven from the typical monetary debasement.
DeFi Technologies unveiled the Bitcoin treasury strategy by announcing the acquisition of 110 BTC valued at CAD $10.5 million, which at press time translates to $7.3 million.
The news of the acquisition propelled the DeFi Technologies stock to rally 26% and exchange hands at CAD $2.01 to raise its market capitalization to $588 million. The DEFI stock has sustained the leap to exchange hands at CAD $2.20, with the market capitalization testing $641.838 million as per Cboe Canada data.
DeFi Technologies’ statement reveals its strategy does not entirely copy the techniques deployed by Metaplanet and MicroStrategy. The company ruled out utilizing share dilution or borrowing to acquire additional Bitcoins. Besides, the firm shelved plans to acquire other cryptocurrencies besides Bitcoin.
The company indicated that it plans to leverage the balance sheet’s large cash position and considers Bitcoin the ideal hedge against inflation. The top-ranked digital asset offers a haven for DeFi Technologies compared to the typical monetary debasement.
DeFi Technologies hailed Bitcoin for its sustained and unmatched performance in the past decade. The firm profiled Bitcoin as offering meaningful short to long-term potential for expanding its treasury.
DeFi Technologies Involvement in Crypto
DeFi Technologies involves a crypto-native entity, as suggested by the name, in offering crypto-affiliated investment products. The firm offers exchange-traded products (ETPs) besides entering into several strategic ventures and Web3 infrastructure.
DeFi Technologies is behind Valour, identified as an asset management-oriented subsidiary that currently has CAD $837 million worth of assets under management (AUM) in various ETPs. An essential product is the Bitcoin ETP, which promises a 5.65% annual yield to investors.
DeFi Technologies observes the considerable value gap between Bitcoin and conventional assets. The company considers the potential to reap outsize returns as Bitcoin realizes increasing acceptance.
DeFi Technologies is behind the crypto market research brand Reflexivity Research. The firm is co-founded by leading Bitcoin influencers duo Clemente and Anthony Pompliano.
Pompliano hailed the adoption of the Bitcoin treasury strategy by public companies globally. The influencer behind Pomp Investments acknowledged his shareholding at DeFi Technologies ($DEFTF) and considers the firm to be undervalued.
Metaplanet and Semler Scientific Replicate MicroStrategy’s Bitcoin Treasury Strategy
MicroStrategy initiated the approach to adopt the Bitcoin treasury model and presently holds a sizable number of Bitcoin units as reserve assets. Today, the business intelligence company is the global leading corporate holder with a 214,400 BTC valued at $14.34 billion.
Two months ago, Tokyo listed MetaPlanet as having announced the adoption of Bitcoin as the firm’s treasury reserve asset. The Japanese firm witnessed the stock price rally to record figures.
Metaplanet Inc. stock has rallied 493% in the past six months to exchange hands at 89 JPY, as per MarketWatch data. The firm disclosed a third Bitcoin purchase to raise the total holdings to 141.07 and valued above $9.1 million.
The crypto community witnessed healthcare product company Semler Scientific disclose plans to acquire Bitcoin valued at $150M besides the $57M acquired in May. The Nasdaq-listed SMLR stock is 58.29% up in the past month to exchange hands at $36.55, as per Yahoo Finance.
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