DeFi Technologies, a publicly traded provider of exchange-traded products (ETPs) and a venture capital firm, has made the bold decision to make Bitcoin (BTC) its primary treasury reserve asset.
In its latest corporate update, the company revealed that its subsidiary, Valour, has successfully repaid $5 million in loans and now manages $607 million in assets as of May 31, 2024.
Following this announcement, the stock price of DeFi Technologies surged on Canadian exchanges and U.S. over-the-counter (OTC) markets. Currently, the company’s shares are trading at approximately $1.57 on U.S. OTC exchanges, a significant increase from the previous trading range of $1.16 to $1.40.
This shift in treasury strategy is just another example of a growing trend among publicly traded companies embracing Bitcoin as a strategic asset, reflecting the broader institutional interest in the decentralized currency.
Recently, Semler Scientific (SMLR) experienced a remarkable 30% increase in its stock price on the Nasdaq after revealing its adoption of Bitcoin as its primary treasury asset and the acquisition of 581 BTC worth $41 million.
Government institutions are also taking notice of Bitcoin as a viable investment option, with the State of Wisconsin Investment Board (SWIB) disclosing a $164 million exposure to Bitcoin exchange-traded funds in May. Similarly, Japan’s Government Pension Investment Fund is embarking on a five-year research project to explore the role of digital assets like Bitcoin and traditional assets like gold in its investment portfolio.
While the exact extent of institutional interest in Bitcoin remains unclear, data from Bitcoin exchange-traded funds (ETFs) provides valuable insight into the growing sentiment toward the asset. According to HODL15 Capital, Bitcoin ETFs have absorbed the equivalent of two months’ worth of newly mined Bitcoin in just the first week of June.
In the midst of this institutional embrace of Bitcoin, questions arise regarding the innovation and risks associated with Ethereum restaking.