DeFi technologies adopt the Bitcoin treasury strategy

DeFi Technologies, a publicly listed exchange-traded product (ETP) provider and venture capital firm, has announced its decision to accept Bitcoin (BTC) as the company's primary treasury asset.

In its monthly corporate report, the company announced that its distribution, Valor, has paid off $5 million in debt and currently has $607 million in assets under management as of May 31, 2024.

Following the announcement, Defy Technologies shares rose on Canadian stock exchanges and US OTC exchanges. Shares of the stock are currently trading at $1.57 on US OTC exchanges, up from the previous session's trading range of $1.16 to $1.40.

The move at the Treasury marks another example of a publicly listed company accepting Bitcoin. It highlights the broader trend towards institutional acceptance of decentralized currency.

Related: Bitcoin ETF flows send BTC price into ‘parabolic run', traders say

In the year Shares of Semler Scientific ( SMLR ) surged as much as 30% after the Nasdaq-listed company announced on May 28 that it had adopted bitcoin as a major asset and bought 581 BTC.

Government institutions are now exploring Bitcoin as part of their investment portfolios and treasury assets. In early May, the State of Wisconsin Investment Board (SWIB) announced that a Wisconsin pension fund manager had $164 million in exposure to a Bitcoin exchange.

Japan's Government Pension Investment Fund, the world's largest pension fund, has launched a five-year research project to examine how digital assets such as bitcoin and traditional precious metals such as gold can fit into investment portfolios.

While Bitcoin's growing institutional interest is difficult to measure, Bitcoin exchange-traded fund (ETF) data can serve as a proxy for measuring institutional sentiment toward the asset.

According to the latest data from HODL15 Capital, Bitcoin ETFs accumulated a two-month supply of Bitcoin hatched by mining operations in the first week of June.

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