DeFi Technologies, a publicly traded provider of exchange-traded products (ETPs) and venture capital firm, has officially decided to make Bitcoin (BTC) its primary treasury reserve asset.
In the company’s latest corporate update, it was revealed that its subsidiary, Valour, has successfully repaid $5 million in loans and currently manages assets worth $607 million as of May 31, 2024.
Following this announcement, the value of DeFi Technologies’ shares surged on both Canadian stock exchanges and U.S. over-the-counter (OTC) exchanges. Currently, the shares are trading at approximately $1.57 on U.S. OTC markets, a significant increase from the previous range of $1.16 to $1.40.
This strategic shift in treasury management reflects a growing trend among publicly listed companies to embrace Bitcoin as a key asset, mirroring the broader institutional adoption of the digital currency.
In a similar move, Semler Scientific (SMLR) experienced a spike of up to 30% in its share value on May 28 after announcing Bitcoin as its primary treasury asset and the acquisition of 581 BTC, valued at $41 million at the time.
Notably, government institutions are also exploring Bitcoin as part of their investment strategies. The State of Wisconsin Investment Board (SWIB) recently disclosed its $164 million exposure to Bitcoin exchange-traded funds, while Japan’s Government Pension Investment Fund initiated a research project to explore the inclusion of digital assets like Bitcoin and traditional assets like gold in its portfolio over a five-year period.
While it is challenging to quantify the increasing institutional interest in Bitcoin, data from Bitcoin exchange-traded funds (ETFs) can provide insight into this sentiment. Recent data from HODL15 Capital shows that Bitcoin ETFs have accumulated two months’ worth of Bitcoin supply within the first week of June alone, signaling strong institutional demand for the cryptocurrency.
As institutional interest in Bitcoin continues to rise, the question of Ethereum restaking remains a topic of debate within the blockchain community, with some viewing it as a groundbreaking innovation while others see it as a risky endeavor akin to a house of cards.