DeFi Technologies Declares Bitcoin as Primary Treasury Reserve Asset, Sparks Growth in Shares
Summary:
DeFi Technologies, a publicly-traded ETP provider and venture capital firm, has decided to adopt Bitcoin as its main treasury reserve asset. In addition, DeFi's subsidiary, Valour, settled $5 million in debts and currently manages $607 million in assets. Following the announcement, DeFi's shares experienced a surge. This move adds to the growing institutional adoption of Bitcoin worldwide. Entities like the Nasdaq-listed Semler Scientific and the Wisconsin Investment Board have also used Bitcoin in their treasury policies, signaling a trend towards greater acceptance of digital assets.
Publicly-traded venture capital firm and exchange-traded product (ETP) provider, DeFi Technologies, is set to use Bitcoin (BTC) as its main treasury reserve asset. The firm reported this in its latest corporate bulletin, also noting that its division, Valour, has paid off $5 million in outstanding debt and presently manages assets worth $607 million as of May 31, 2024. Following this disclosure, the value of DeFi Technologies' shares surged on Canadian and U.S. foreign trading (OTC) markets. Currently, shares of the firm on U.S. OTC markets hover around $1.57, surpassing the previous day's trading band which fell between $1.16 and $1.40.
DeFi Technologies' over-the-counter share prices. Source: TradingView
This change in treasury policy indicates another instance of a company listed on the stock exchange endorsing Bitcoin, and underscores the wider movement towards adopting this decentralized currency at an institutional level.
On the trading day of May 28, shares of Semler Scientific (SMLR) soared by nearly 30% subsequent to the announcement by the company, listed on Nasdaq, to use Bitcoin as its major treasury asset and purchase 581 BTC, estimated to be worth $41 million at the press time.
Official institutions are also progressively considering adding Bitcoin as part of their investment portfolios and treasury assets. Earlier in May, the State of Wisconsin Investment Board (SWIB) informed that it has a $164 million stake invested in Bitcoin exchange-traded funds.
Additionally, Japan’s Government Pension Investment Fund, globally recognized as the biggest pension fund, undertook a five-year research initiative to understand how digital currencies such as Bitcoin and conventional valuable metals - for example, gold - could contribute to its investment portfolio. While it is complicated to precisely estimate the increasing institutional interest in Bitcoin, analysis of Bitcoin ETF data might offer insights into institutional attitudes towards the cryptocurrency.
HODL15 Capital's recent data indicates that in the first week of June alone, Bitcoin ETFs have amassed a two-month supply of Bitcoin produced through mining operations.
Published At
6/10/2024 11:23:03 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.