DeFi Technologies Makes Bold Move: Shifts Treasury Reserve to Bitcoin

Bitcoin Gains Traction: Public Company Chooses BTC for Reserves

DeFi Technologies, a publicly traded company with fingers in both exchange-traded product (ETP) offerings and venture capital, is making waves by announcing Bitcoin as its new king of the treasury reserve. This news, unveiled in their latest monthly report, comes alongside the repayment of $5 million in loans by their subsidiary, Valour, which currently boasts $607 million in assets under management (as of May 31, 2024).

The announcement sent a surge through DeFi Technologies’ share prices on both Canadian stock exchanges and US over-the-counter (OTC) markets. Shares are currently trading around $1.57 on US OTC exchanges, a significant leap from the previous session’s range of $1.16 to $1.40.

This shift in treasury strategy isn’t a one-off. It’s part of a larger trend of publicly listed companies embracing Bitcoin. Back in May, Semler Scientific (SMLR) saw its share price jump 30% after the Nasdaq-listed company announced Bitcoin as its primary treasury reserve and purchased 581 BTC (valued at roughly $41 million at the time).

Governments are also starting to dip their toes into the Bitcoin waters. The State of Wisconsin Investment Board (SWIB), manager of Wisconsin’s pension fund, revealed a $164 million exposure to Bitcoin ETFs earlier in May. Similarly, the world’s largest pension fund, Japan’s Government Pension Investment Fund, launched a five-year research project to explore how digital assets like Bitcoin could fit alongside traditional holdings like gold within its investment portfolio.

While quantifying the exact level of institutional interest in Bitcoin can be tricky, Bitcoin exchange-traded funds (ETFs) can offer some insight. According to recent data from HODL15 Capital, Bitcoin ETFs gobbled up a staggering amount of Bitcoin in the first week of June alone – equivalent to roughly two months’ worth of mining output.

This growing institutional embrace of Bitcoin is a significant development, and DeFi Technologies’ decision is just the latest chapter in this unfolding story.