DeFi Technologies, a Canadian fintech firm, has recently made a significant move by increasing its Bitcoin holdings. They added 94.4 Bitcoins, worth around $6.1 million, to their balance sheet. This brings their total Bitcoin holdings to 204.34 BTC, valued at approximately $13.2 million. This step builds on their decision last month to adopt Bitcoin as their primary treasury reserve asset, marking their second publicly announced Bitcoin purchase.
But DeFi Technologies didn’t stop there. For the first time, the company has also included altcoins in its digital asset treasury. They now hold 12,775 Solana (SOL) tokens, worth $2.03 million, and 1,484,148 CORE tokens, worth $2.12 million.
Curtis Schlaufman, the VP of communications at DeFi Technologies, explained their strategy: “While Bitcoin remains a cornerstone of our treasury due to its established status as a store of value and hedge against inflation, other digital assets like Solana and Core offer unique opportunities that complement our investment strategy.”
Schlaufman highlighted Solana’s appeal as a high-performance blockchain with low fees, high throughput, and a strong developer community. These features make it ideal for a variety of applications. Additionally, the potential launch of a Solana ETF in the U.S. by VanEck underscores its investment appeal.
Core, on the other hand, is an emerging layer-1 blockchain that benefits from Bitcoin’s security and allows BTC holders to stake their coins and earn yield in CORE tokens. DeFi Technologies plans to participate in Core DAO staking, enhancing their yield opportunities.
“Solana and Core are seen as complements to Bitcoin rather than competitors,” added Schlaufman. “Together, these assets provide a well-rounded approach to leveraging the strengths of different blockchain technologies and maximizing our strategic investment potential.”
DeFi Technologies operates primarily through Valour, which offers crypto ETPs that stake customers’ crypto assets to generate yield. Their Solana and Bitcoin ETPs are their biggest earners, thanks to native Solana staking and Core staking, respectively.
Earlier this year, DeFi Technologies benefited from the crypto market rally, making significant profits from its asset management and trading activities. This success boosted their stock price, especially after they announced rotating some of these profits into Bitcoin.
DeFi Technologies joins other firms, like MicroStrategy, in making Bitcoin a key part of their balance sheets. MicroStrategy’s stock has surged 132% year-to-date, while Metaplanet, following a similar strategy, saw its stock price increase sixfold.
As of last week, DeFi Technologies had $49.3 million in cash, 110 BTC, and $13.3 million in loans payable, showcasing their robust financial health and commitment to a diversified digital asset strategy.
