Subsidiary Valour Repays an Additional US$5 Million in Loans, AUM Reaches C$837 Million (US$607 Million), Reflecting 64.9% Annual Growth with Strong Net Inflows of C$6.9 Million (US$5.08 Million)
- Bitcoin Treasury and Purchase of 110 Bitcoins: DeFi Technologies has adopted Bitcoin as its primary treasury reserve asset, purchasing 110 Bitcoins to initiate this strategy, reflecting confidence in Bitcoin‘s protection from monetary debasement and potential to expand the Company’s treasury.
- Valour AUM and Repayment of Loans: Valour reports AUM of C$837 million (US$607 million) as of May 31, 2024, a year-on-year increase of 64.9%. Valour has also successfully repaid an additional US$5 million in outstanding loans secured by BTC and ETH collateral, following a previous repayment of US$19.5 million.
- Launch of Innovative Products and New Ventures: Valour Inc. introduced several innovative ETPs, including the Valour Internet Computer (ICP) ETP, Valour Toncoin (TON) ETP, Valour Chainlink (LINK) ETP, and the world’s first yield-bearing Bitcoin (BTC) ETP. Furthermore, the DeFi Alpha trading desk generated approximately C$113.8 million (US$83.4 million) in Q2 from low-risk arbitrage trades.
TORONTO, June 10, 2024 /PRNewswire/ – DeFi Technologies Inc. (the “Company” or “DeFi Technologies“) (CBOE CA: DEFI) (GR: R9B) (OTC: DEFTF), a financial technology company that pioneers the convergence of traditional capital markets with the world of decentralised finance (“DeFi“), is pleased to announce that it has adopted Bitcoin as its primary treasury reserve asset and has purchased 110 Bitcoins to initiate this strategy.
Bitcoin is now a major asset class with a market value exceeding $1 trillion. DeFi Technologies believes it has unique characteristics as a scarce and finite asset, making it a reasonable hedge against inflation and a safe haven from monetary debasement. Furthermore, its digital and architectural resilience positions it as a preferable alternative to traditional assets. Given the significant value gap between Bitcoin and other traditional assets, DeFi Technologies believes Bitcoin has the potential to generate outsized returns as it gains increasing acceptance.
Valour AUM Update and Repayment of Loans
The Company also announces that its subsidiary, Valour Inc., and Valour Digital Securities Limited (together, “Valour“), a leading issuer of exchange traded products (“ETPs“) that provide simplified access to digital assets, reports assets under management (“AUM“) of C$837 million (US$607 million) as of May 31, 2024. This figure represents a significant year-on-year increase of 64.9%, driven by a strong net inflow of C$6.9 million (US$5.08 million) and the appreciation of asset prices compared to the previous month.
Valour has also successfully repaid an additional US$5 million in outstanding loans secured by 1077 ETH collateral. This repayment, achieved without raising additional equity or debt, released approximately 2044 ETH back into Valour’s operational assets, enabling potential staking and additional revenue generation. This is in addition to the US$19.5 million in outstanding loans that DeFi Technologies announced Valour had successfully repaid on May 7, 2024.
The debt repayments of US $19.5 million, US$5 million and the purchase of 110 Bitcoin (US $7.9 million) as a treasury reserve asset were funded by revenue from the DeFi Alpha trading desk, the Company’s newest business line, which has generated approximately C$113.8 million (US$83.4 million) in Q2 thus far from low-risk arbitrage trades. As of the end of May 2024, DeFi Technologies maintains a strong cash balance of approximately C$69.9 million (US$51 million), underscoring its robust financial health and capacity for continued growth and strategic investments.
“We have adopted Bitcoin as our primary treasury reserve asset, reflecting our confidence in its role as a hedge against inflation and a safe haven from monetary debasement,” said Olivier Roussy Newton, CEO of DeFi Technologies. “As the best-performing asset over the past decade, Bitcoin offers significant short to long-term potential to expand the Company’s treasury. Our strong year-on-year AUM growth reflects sustained demand for our innovative ETP products and investor trust. Tremendous revenue growth and a strong cash position highlight the effectiveness of our strategic initiatives. The success of DeFi Alpha in scaling our revenue model and our groundbreaking products demonstrate our commitment to providing secure, diversified, and accessible digital asset investment options. Our successful loan repayments further showcase the resilience of our operational strategy. We are excited about our future prospects and look forward to advancing our position in the digital asset space.”
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Read More: DeFi Technologies Provides Monthly Corporate Update: Announces Bitcoin Treasury