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DeFi Technology Adopts Bitcoin as Treasury Reserve, Stock Surges Over 15%

DeFi Technology has acquired 110 bitcoins to kickstart its Bitcoin reserve strategy.

Bitcoin on motherboard

The stocks of Canada-based publicly traded company DeFi Technology surged on Monday after it announced it was adopting Bitcoin as its primary treasury reserve. The firm became the latest to adopt BTC after Japanese firm Metaplanet did the same last month.

DeFi Technology’s stock, with ticker DEFTF, opened the day at $1.4. Following the firm’s announcement, DEFTF had grown to $1.5 at press time, more than 15% from the opening price.

“DEFi Technology has adopted Bitcoin as its primary treasury reserve asset, purchasing 110 Bitcoins to initiate this strategy, reflecting confidence in Bitcoin’s protection from monetary debasement and potential to expand the company’s treasury,” DeFi Technology’s CEO, Olivier Roussy, said in an X post.

DeFi Technology Resumes Bitcoin Purchase

The Canadian-based firm also announced that it bought 110 bitcoins to initiate its new treasury strategy. According to Roussy, the strategy was inevitable, as “Bitcoin is slowly seeping into public company treasuries around the world.”

The adoption of Bitcoin as a primary reserve among publicly traded companies has heightened recently, as its initiator, MicroStrategy, has reaped immense benefits from this decision. MSTR has grown significantly in the last few years, having already increased by over 138% this year.

Last month, Semler Scientific also announced it was adopting Bitcoin as its reserve and buying $40 million worth of the asset. Bitcoin is widely seen as a store of value and a good hedge against inflation, a sentiment shared by asset manager VanEck.

Solid Monthly Corporation Update

Alongside the news, DeFi Technology also published its monthly corporation update. Amongst other impressive details is the declaration of about C$837 million ($607 million) in assets under management (AUM).

The firm’s AUM rose 64% year over year, signifying growth in the company’s credibility. The monthly report also showed that DeFi Technology’s subsidiary, Valour, successfully repaid $5 million in existing loans. The repayment, which was not backed by incurring additional debt, freed up 2044 ETH for operational usage.

Elendu Benedict

Elendu Benedict is a professional writer with sheer competence in crypto-related journalism. With a background in Engineering, Benedict specialises on news related to ETFs, market analysis, and macroeconomic policies that affects the crypto market.