DeFi Technologies Inc., a prominent Canadian fintech company, has chosen Bitcoin (BTC) as its main treasury reserve asset. The company has acquired 110 BTC and has incorporated traditional finance with decentralized finance (DeFi).
This strategic decision is in accordance with the current trend of corporations expanding their portfolios in response to economic fluctuations.
Bitcoin’s market capitalization exceeds $1 trillion, establishing it as a reliable safeguard against inflation and a secure refuge from currency devaluation. The scarcity, immutability, and digital robustness of cryptocurrency make it more attractive than conventional assets.
Olivier Roussy Newton, the CEO of DeFi Technologies, stated unwavering belief in Bitcoin’s capacity to serve as a hedge against inflation and a secure refuge from monetary devaluation.
Anthony Pompliano, a proponent of Bitcoin, endorses this decision, claiming that the company is still underestimated in terms of its value.
This decision aligns with significant monetary policy adjustments, such as the Bank of Canada’s recent reduction of its key policy rate from 5% to 4.75%, aimed at alleviating the financial strain on households with high levels of debt.
Reduced interest rates result in more affordable borrowing, which has the potential to stimulate higher levels of spending and investment.
DeFi Technologies’ decision to accept Bitcoin aligns with a larger pattern of firms integrating Bitcoin into their reserves. This is because Bitcoin’s capacity to protect against inflation and monetary volatility makes it an appealing choice for companies aiming to diversify and safeguard long-term value.
