DeFi Technologies Stakes $100M in Bitcoin, Aims to Innovate Traditional Finance with Blockchain
Summary:
Toronto-based DeFi Technologies is set to launch a validator node on Core Chain, staking nearly $100 million in Bitcoin. With this move, they will receive rewards for transaction validation and staking via their subsidiary, Valour. The collaboration also aims to launch Valour Bitcoin Staking, a yield-bearing exchange-traded product. This venture aligns with DeFi Technologies' strategy shift towards greater Bitcoin reliance, reinforcing the integration of traditional finance and blockchain.
DeFi Technologies intends to establish a validator node on Core Chain, committing nearly $100 million worth of Bitcoin (BTC) in the process. Through its subsidiary, Valour, the Toronto-based firm will earn rewards for transaction validation and staking. With Core’s Ethereum Virtual Machine-compatible consensus mechanism on its layer-1, BTC-driven blockchain, staking becomes possible. According to DeFi Technologies CEO Olivier Roussy Newton, the move is part of the company's ongoing efforts to integrate traditional and blockchain finance, providing unique growth and yield opportunities for their investors in the digital asset market. Despite their BTC being staked, stakers retain control during the lockup period, gaining rewards in the form of CORE token that gets ploughed back into the product, yielding 11.66% returns. Half of the BTC mining hash power is utilized to sustain the security of the blockchain. Excluding DeFi Technologies' recent stake, Core holds upwards of 2,800 BTC in stakes. The collaboration between DeFi Technologies and Core is not a new development. Previously, on May 10, they launched Valour Bitcoin Staking, an exchange-traded product on the Nordic Growth Market exchange, making use of the Swedish krona as the benchmark currency. Regarded as the inaugural yield-bearing BTC ETP, this Valour ETP brings BTC exposure at a 5.65% yield with a 1.9% administration fee. The team also plans to introduce a Core ETP that enables yield generation through BTC staking. Additionally, Valour offers ETPs for 12 other currencies, along with a Bitcoin Carbon Neutral (BTCN) and a Blue Chip X Index basket from the STOXX Bitcoin Suisse Digital Asset, and a few of these options come without management fees. DeFi Technologies' decision to engage more deeply with BTC resonates with a recent strategic shift towards enhancing its reliance on BTC. On June 10, the company declared BTC as its main treasury reserve asset and acquired 110 BTC to solidify this strategy, triggering a 23% boost in DeFi Technologies' share price. As of May 31, DeFi Technologies had a cash reservoir of $51 million, whereas Valour managed $607 million worth of assets. Back in mid-March 2022, Valour’s AUM was valued at $274 million.
Published At
6/11/2024 9:22:49 PM
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