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DeFi Technologies Inc. Turns to Bitcoin as Main Treasury Asset

Jun 11, 2024

DeFi Technologies Inc., a prominent Canadian fintech company, has selected Bitcoin as its primary treasury reserve asset, acquiring 110 BTC and merging traditional finance with decentralized finance (DeFi). This strategic move follows the current trend of corporations diversifying their portfolios in response to economic fluctuations.

Bitcoin, with a market capitalization surpassing $1 trillion, has emerged as a dependable hedge against inflation and a secure haven from currency devaluation. The cryptocurrency's scarcity, immutability, and digital resilience make it more appealing than traditional assets.

Olivier Roussy Newton, CEO of DeFi Technologies, expresses a strong belief in Bitcoin's ability to serve as a hedge against inflation and a secure refuge from currency devaluation.

Anthony Pompliano, a vocal supporter of Bitcoin, supports this decision, emphasizing that the true value of the cryptocurrency is still underestimated.

This move is in harmony with significant monetary policy adjustments, such as the Bank of Canada reducing its key policy rate from 5% to 4.75% to ease financial pressures on highly indebted households.

Lower interest rates translate to more accessible borrowing, potentially fueling increased spending and investment.

DeFi Technologies' acceptance of Bitcoin reflects a broader trend of companies integrating the cryptocurrency into their reserves. Bitcoin's ability to shield against inflation and monetary volatility makes it an attractive option for firms seeking to diversify and safeguard long-term value.

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