DeFi Technologies, a publicly traded company (ETP) and…

DeFi Technologies, a publicly traded (ETP) and venture capital company, announced its decision to adopt Bitcoin (BTC) as the company’s primary cash reserve asset.

In its monthly corporate report, the company also announced that its subsidiary Valor has repaid $5 million in loans and currently has $607 million in assets under management as of May 31, 2024.

Following this announcement, the price of DeFi Technologies shares increased on Canadian and US over-the-counter (OTC) exchanges. Its shares are currently trading at around $1.57 on US OTC exchanges, up from the previous session’s trading range of $1.16 to $1.40.

An overview of the price of DeFi technologies on US OTC exchanges. Source: Commercial View

The change in treasury strategy represents another example of a publicly traded company adopting Bitcoin; This also highlights the broader trend of institutional adoption of decentralized currency.

about: Traders say Bitcoin ETF inflows will send the price of Bitcoin on a “parabolic path.”.

On May 28, shares of Semler Scientific (SMLR) rose 30% after the Nasdaq-listed company announced the adoption of Bitcoin as its primary treasury asset and the purchase of 581 Bitcoins, worth 41 million dollars at the time.

Government institutions are now also exploring Bitcoin as part of their investment portfolios and treasury assets. Earlier in May, the Wisconsin State Investment Board (SWIB), Wisconsin’s retirement fund manager, announced that it had $164 million in exposure to Bitcoin exchange-traded funds.

The Japanese government pension fund, the world’s largest pension fund, has also launched a five-year research project to explore how digital assets such as Bitcoin and traditional precious metals such as gold could be integrated into its investment portfolio.

Although growing institutional interest in Bitcoin is difficult to measure, data from Bitcoin exchange-traded funds (ETFs) can serve as a proxy to measure institutional sentiment toward the asset.

According to recent data from HODL15 Capital, Bitcoin ETFs have already accumulated two months’ supply of Bitcoin issued through mining activities in the first week of June alone.

review: Recovering Ethereum: blockchain innovation or dangerous house of cards?

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