DeFi Technologies launched SolFi as a “Microstrategy for Solana”.
Defy Technologies, a cryptocurrency investment platform, has created a new company called Solfi, which is designed to be “Solana MicroStrategy” (SOL), according to a November 12 announcement.
Solfi is a fully focused DeFi technology spin-off “providing investors directly with the Solana blockchain ecosystem through proprietary trading, validation node operations and ecosystem investments,” according to DeFi Technologies.
Solfi competes with existing SOL staking platforms and aims to differentiate itself by achieving a higher yield on staked SOL than its peers, Defy Technologies said.
“Incorporating SolFi Technologies' proven and proprietary Maximum Asset Value (MAV) engine…SolFi Technologies aims to generate more consistent cash flow than third-party equity providers, which can be reinvested or distributed to shareholders in dividends,” according to SolFi.
“The success of MicroStrategy has increased exposure to the #1 digital asset in Bitcoin, and we look forward to focusing Solfin's digital asset strategy from the ground up,” said Olivier Rousey Newton, CEO of Defy Technologies.
“Like MicroStrategy, Solfi generates cash flow from an established company and leverages the capital markets for innovative financing structures to enable Solfi to rapidly grow its treasury and accelerate its share operations.
MicroStrategy shares have risen more than 2000% since 2020 after the software provider company first entered into a BTC buying strategy.
Its stock, MSTR, traded at $356 per share as of Nov. 12, down from $15 per share in 2020.
During its August 1 earnings call, MicroStrategy doubled down on BTC purchases based on a unique performance measure: Bitcoin yield.
Bitcoin yield measures the ratio of BTC holdings to outstanding shares and effectively positions BTC-per-share as a lodestar for corporate performance.
On October 30, Microstrategy plans to buy $42 billion of BTC over the next three years.
Investors are particularly bullish on Solana, with 30% predicting it will top $600 before the end of the cycle, MV Global, a Web3 investment firm, told Cointelegraph.
“Solana is the longest consensus among all the ratings we've talked to,” said Tom Dunleavy, managing partner at MV Global.
On July 9, Defy Technologies agreed to buy trading desk Stillman Digital in an all-stock deal that analysts say will turn the Canadian cryptocurrency platform into a “miniature version of Galaxy Digital.”
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