Canadian Fintech DeFi Technologies Chooses Bitcoin

Canadian Fintech DeFi Technologies Chooses Bitcoin

EconomyBitcoin

By Jakub Lazurek

11 Jun 2024 (about 1 month ago)

3 min read

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DeFi Technologies, a top Canadian fintech firm, adopts Bitcoin as its main treasury reserve asset, buying 110 BTC to hedge against inflation.

DeFi Technologies Inc., a leading Canadian fintech company, has made a significant move by adopting Bitcoin (BTC) as its primary treasury reserve asset. This strategic decision involves buying 110 BTC and integrating traditional finance with decentralized finance (DeFi). This shift aligns with the trend of companies diversifying portfolios amid economic changes.

Bitcoin's value surpasses $1 trillion, making it a solid hedge against inflation. Its scarcity, fixed supply, and digital resilience make it more appealing than traditional assets. Olivier Roussy Newton, CEO of DeFi Technologies, expressed confidence in Bitcoin: “We have adopted Bitcoin as our primary treasury reserve asset, reflecting our belief in its role as a hedge against inflation and a safe haven from monetary debasement. As the best-performing asset over the past decade, Bitcoin offers significant potential to expand the company’s treasury.”

Anthony Pompliano, a Bitcoin advocate, supports this move. Bitcoin is slowly seeping into public company treasuries around the world. We remain shareholders of DeFi Technologies (DEFTF) and believe the business is still undervalued,” he shared on X (formerly Twitter).

This decision coincides with major monetary policy changes. The Bank of Canada recently lowered its key policy rate from 5% to 4.75% to ease the burden on indebted consumers. Lower interest rates make borrowing cheaper, potentially increasing spending and investment. For DeFi Technologies, this means lower capital costs and a greater appeal for alternative investments like Bitcoin.

Matteo Greco, a research analyst at Fineqia, highlighted Bitcoin's potential as a leveraged version of gold for those who see it as a store of value. “Over the past 15 years, Bitcoin has consistently increased in value against fiat currencies, despite higher volatility. Investors who accept short-term losses have found Bitcoin to be a valuable mid- to long-term investment”.

DeFi Technologies' adoption of Bitcoin is part of a broader trend of companies incorporating Bitcoin into their reserves. As economic conditions fluctuate and interest rates drop, Bitcoin's appeal grows. Its ability to safeguard against inflation and monetary instability makes it an attractive option for companies seeking to diversify and secure long-term value.

By adopting Bitcoin as a reserve asset, DeFi Technologies positions itself at the forefront of financial innovation, embracing digital assets to transform the financial landscape. This move not only strengthens the company’s financial stability but also highlights its commitment to leveraging new technologies for growth and resilience.

In summary, DeFi Technologies' investment in Bitcoin as a treasury reserve marks a key milestone in merging traditional finance with decentralized finance. This move underscores Bitcoin's growing acceptance as a valuable asset and its potential to hedge against economic uncertainty. As more companies adopt digital assets, the financial landscape will evolve, with Bitcoin playing a central role in this transformation.

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