DeFi Technologies Embraces Bitcoin as Primary Treasury Reserve Asset

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DeFi Technologies, a publicly listed exchange-traded product (ETP) provider and venture capital firm, has made a significant move by adopting Bitcoin (BTC) as its primary treasury reserve asset. 

This strategic decision was detailed in the company’s latest monthly corporate report, which also highlighted the repayment of $5 million in loans by its subsidiary, Valour. As of May 31, 2024, Valour manages $607 million in assets.

DeFi Technologies’ Share Surge

The announcement has had a positive impact on DeFi Technologies’ share prices. Following the news, the company’s shares experienced a notable increase on Canadian stock exchanges and U.S. over-the-counter (OTC) exchanges. Currently, the shares are trading around $1.57 on U.S. OTC exchanges, up from the previous session’s trading range of $1.16 to $1.40.

This move by DeFi Technologies is part of a broader trend of institutional adoption of Bitcoin as a treasury reserve asset. Publicly listed companies and government institutions alike are increasingly recognizing the potential of decentralized currencies. The adoption of BTC by DeFi Technologies underscores the growing confidence in Bitcoin’s role as a reliable store of value.

SMLR Surged 30%

In a related development, shares of Semler Scientific (SMLR) surged by up to 30% on May 28 following the Nasdaq-listed company’s announcement of adopting Bitcoin as its primary treasury asset. Semler Scientific purchased 581 BTC, valued at $41 million at the time. This significant investment further exemplifies the trend of institutional adoption of Bitcoin.

Government institutions are also exploring BTC as part of their investment portfolios. In early May, the State of Wisconsin Investment Board (SWIB), which manages Wisconsin’s pension fund, revealed it had $164 million in exposure to Bitcoin exchange-traded funds (ETFs). This move highlights the growing acceptance of Bitcoin within traditional financial institutions.

Bitcoin Adoption on the Rise

Japan’s Government Pension Investment Fund, the largest pension fund globally, has initiated a five-year research project to explore the integration of digital assets like Bitcoin and traditional assets such as gold into its investment portfolio. This research aims to understand how digital assets can coexist with traditional investment vehicles.

While it is challenging to quantify the extent of institutional interest in Bitcoin, BTC ETF data provides valuable insights. According to HODL15 Capital, Bitcoin ETFs accumulated two months’ worth of Bitcoin supply minted through mining activities in the first week of June alone. This data suggests a robust institutional demand for BTC, reflecting positive sentiment toward the asset.

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