DeFi Technologies, a publicly traded provider of exchange-traded products (ETPs) and a venture capital firm, has announced a bold move by making Bitcoin (
BTC
) its primary treasury reserve asset.
In their latest corporate update, the company revealed that their subsidiary, Valour, has successfully paid off $5 million in loans and currently manages assets worth $607 million as of May 31, 2024.
Following this announcement, the stock price of DeFi Technologies surged on Canadian stock exchanges and U.S. over-the-counter (OTC) exchanges. Currently, the company’s shares are trading at approximately $1.57 on U.S. OTC exchanges, showing a significant increase from the previous trading range of $1.16 to $1.40.
This strategic shift in treasury management is another example of a public company embracing Bitcoin, reflecting the broader trend of institutional adoption of the digital currency.
In a similar move, Semler Scientific (SMLR) experienced a surge of up to 30% in its share price after announcing the adoption of Bitcoin as its primary treasury asset and the acquisition of 581 BTC valued at $41 million.
Government institutions are also exploring Bitcoin as an investment option. The State of Wisconsin Investment Board (SWIB) recently disclosed a $164 million exposure to Bitcoin exchange-traded funds, while Japan’s Government Pension Investment Fund is conducting a research project over five years to evaluate the role of digital assets like Bitcoin and traditional assets like gold in their investment portfolio.
Although the exact extent of institutional interest in Bitcoin is challenging to quantify, data from Bitcoin exchange-traded funds (ETFs) can offer insights into institutional sentiment towards the cryptocurrency. According to HODL15 Capital, Bitcoin ETFs acquired the equivalent of two months’ worth of newly mined Bitcoin in the first week of June alone.
As institutional interest in Bitcoin continues to grow, questions arise about the stability and sustainability of Ethereum restaking, prompting discussions about the innovation and risks associated with blockchain technology.