DeFi Technologies, a publicly traded company that focuses on Web3 technologies, has taken a page out of MicroStrategy's playbook by announcing its own Bitcoin treasury strategy.
It has made an initial acquisition of 110 Bitcoins ($7.7 million) after deciding to make Bitcoin its primary reserve asset.
The company, whose shares are trading on Toronto's Cboe Canada, explained that it had acquired Bitcoin in order to protect the company's assets from currency debasement. Roussy Newton, CEO of DeFi Technologies, is convinced that the company could potentially expand its treasury because of the latest investment.
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Business intelligence MicroStrategy famously became a trailblazer in the realm of corporate Bitcoin adoption with its audacious bet in August 2020. The bet has paid off, with co-founder Michael Saylor becoming one of the most prominent Bitcoin advocates. As reported by U.Today, the company's stock was recently added to the MSCI World Index after its shares surged by more than 100% in 2024. MicroStrategy remains the biggest corporate holder of the leading cryptocurrency by a large margin with its massive $15 billion Bitcoin fortune.
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After MicroStrategy, Tesla also purchased $1.5 billion worth of Bitcoin in February 2021, but it has already liquidated a substantial portion of that investment.
Last month, medical technology company Semler Scientific also decided to purchase $40 million worth of Bitcoin.
Overall, corporate adoption of Bitcoin has failed to take off, with very few non-crypto companies adding the leading cryptocurrency to their balance sheets. However, new accounting rules, which will go into effect next year, are expected to make it easier for companies to buy Bitcoin.