DeFi Technologies, a crypto-focused investment provider, recently announced that it had purchased 110 BTC for its corporate reserves, making Bitcoin its primary treasury reserve asset. As the first Canadian public company to do so, DeFi Technologies joins a growing list of global firms that have started to hold Bitcoin as a hedge against inflation and monetary debasement. Following the announcement, the company’s stock price surged by 25% to CAD $220, with a market cap of $641 million.
Through its subsidiary ETF provider Valour, DeFi Technologies offers institutional grade exposure to digital assets through ETPs, strategic ventures, and Web3 infrastructure. Valour currently holds CAD $837 million (USD $607 million) in assets under management and provides a variety of crypto ETPs, including a Bitcoin ETF with zero fees and a product that offers a yield of over 5% per year. The company sees Bitcoin as an asset with significant growth potential compared to traditional assets.
DeFi Technologies also owns Reflexivity Research, a crypto market intelligence firm founded by well-known crypto influencers Anthony Pompliano and Will Clemente. Pompliano, through his investment firm Pomp Investments, remains an investor in DeFi Technologies and believes that the company is undervalued. In recent months, more companies, including MicroStrategy, Semler Scientific, and MetaPlanet, have adopted Bitcoin as their primary savings vehicle for excess cash. However, unlike some other firms, DeFi Technologies has not announced plans to raise funds through capital markets to purchase more BTC.
MicroStrategy, the largest corporate Bitcoin investor, currently holds 214,400 BTC under management. The growing trend of corporate entities holding Bitcoin as a treasury reserve asset signifies the increasing acceptance of the cryptocurrency as a legitimate store of value. Companies like DeFi Technologies are recognizing Bitcoin’s unique characteristics as a scarce and finite asset that can provide protection against inflation and financial uncertainty. As more companies follow suit, the adoption of Bitcoin as a corporate asset is expected to continue to grow in the future.
