DeFi Technologies (DEFTF) – a rising Canadian fintech company – has acquired another large batch of Bitcoin (BTC) after making the asset a core part of its treasury strategy last month.
The company announced Thursday that it had purchased another 94.34 BTC for its balance sheet, adding to the 110 BTC it first acquired in June. The firm also announced an expansion into altcoins, purchasing 12,775 SOL tokens and 1,484,148 CORE tokens for the first time.
DeFi Technologies’ Bitcoin Treasury
At current prices, the total value of DeFi Technologies’ recently acquired crypto is $10 million.
“Each asset brings distinct advantages and capabilities to our treasury,” said Curtis Schlaufman, VP of communications at DeFi Technologies, to CryptoPotato. “Bitcoin serves as a reliable store of value and hedge against inflation, while Solana offers high transaction throughput and low fees, making it suitable for a wide array of decentralized applications.”
DeFi Technologies’ core business subsidiary, Valour, offers dozens of crypto ETPs in Europe which regulators are more hesitant to permit on public markets in North America.
The company’s strongest products are its Bitcoin and Solana ETPs, from which it generates yield by staking users’ assets within both funds. While Bitcoin’s blockchain ordinarily doesn’t feature staking, the firm can still stake its BTC using the Core network, which inherits part of its blockchain security from Bitcoin.
“CORE’s innovative staking solutions and focus on Bitcoin scaling further enhance our ability to generate yields and participate in the broader DeFi ecosystem,” Schlaufman said.
As of last week, DeFi Technologies said it held $49.3 million in cash on its balance sheet, alongside 110 BTC, and $13 million in outstanding loans.
The MicroStrategy Playbook
Last month, shares in DEFTF roared as it announced its establishment of Bitcoin as its “primary treasury reserve asset.” Many popular crypto analysts including Will Clemente – whose research company was acquired by DeFi Technologies in January – have hailed the company as being “misunderstood” and “undervalued.”
DeFi Technologies Head of Capital Markets, Russell Starr, has said his firm’s view of Bitcoin is similar to that of MicroStrategy (MSTR)’s – the first publicly traded company to go all in on BTC. MSTR is up 127% year to date, while DEFTF is up 190%.
Meanwhile, the so-called “MicroStrategy of Japan,” MetaPlanet, has seen its stock surge a whopping 681% since the year began. Much like MicroStrategy, MetaPlanet leverages capital markets and leverage to acquire BTC, whereas DeFi Technologies is attempting to keep debt to a minimum.
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