DeFi Technologies has decided to adopt Bitcoin as its primary treasury reserve asset. To kick off this new strategy, the company has purchased 110 Bitcoins. This decision reflects DeFi Technologies’ confidence in Bitcoin’s ability to protect against monetary debasement and its potential to grow the company’s treasury.
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With Bitcoin now valued at over $1 trillion, DeFi Technologies has stated that its unique characteristics as a scarce and finite asset make it a solid hedge against inflation and a safer alternative to traditional assets. The company sees Bitcoin’s digital resilience and architecture as advantageous, making it preferable.
DeFi Technologies makes Bitcoin its primary treasury
In a press release shared with Cryptpopolitan, Olivier Roussy Newton, CEO of DeFi Technologies, stated:
“We have adopted Bitcoin as our primary treasury reserve asset, reflecting our confidence in its role as a hedge against inflation and a safe haven from monetary debasement. As the best-performing asset over the past decade, Bitcoin offers significant short to long-term potential to expand the Company’s treasury.”
DeFi Technologies’ subsidiary, Valour, has reported significant achievements. As of May 31, Valour’s assets under management (AUM) have reached $607 million, reflecting a year-on-year growth of 64.9%. This growth has been driven by strong net inflows of $5.08 million and the appreciation of asset prices.
Valour has also repaid an additional $5 million in outstanding loans secured by ETH collateral. This repayment was accomplished without raising additional equity or debt, releasing approximately 2044 ETH back into Valour’s operational assets, per the release. This opens up opportunities for potential staking and additional revenue generation.
These loan repayments and the purchase of 110 Bitcoins, valued at $7.9 million, were funded by revenue from the DeFi Alpha trading desk. As of the end of May 2024, DeFi Technologies states that it holds a strong cash balance of approximately $51 million.
Valour launches crypto ETPs
Valour has introduced several crypto exchange-traded products (ETPs) and new ventures, further strengthening its market position. In May 2024, it revealed ETPs, including the Valour Internet Computer (ICP) ETP, Valour Toncoin (TON) ETP, and Valour Chainlink (LINK) ETP. These products carry a 1.9% management fee.
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Moreover, Valour launched the world’s first yield-bearing Bitcoin (BTC) ETP in collaboration with the Core Foundation. This product, traded on the Nordic Growth Market (NGM) exchange, offers a 5.65% yield. According to the company, the Valour Bitcoin Staking (BTC) SEK ETP enhances investor returns while maintaining custodial control and security. By delegating Bitcoins to Core validators, it attributes yield to the Net Asset Value (NAV) daily, simplifying Bitcoin investment.
Cryptopolitan reporting by Jai Hamid