The publicly traded Canadian company has added Bitcoin to its corporate treasury as a hedge against inflation and as a protective asset during periods of monetary instability.
DeFi Technologies Inc., a Canadian company in the field of digital assets, has announced the inclusion of Bitcoin as the primary treasury reserve asset. This decision includes an initial purchase of 110 BTC.
The company views Bitcoin as an effective hedge against inflation and monetary instability. The scarcity and finite nature of Bitcoin, along with its digital resilience, were key factors in the decision.
Olivier Roussy Newton, CEO of DeFi Technologies, stated:
“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. As the best-performing asset over the past decade, Bitcoin offers significant short to long-term potential to expand the company’s treasury.”
The decision comes following recent changes in monetary policies in Canada. Last week, the Bank of Canada reduced interest rates from 5% to 4.75%. A context of lower interest rates could increase the attractiveness of Bitcoin as an investment. Lower interest rates make borrowing money cheaper for both consumers and businesses. This change can lead to increased spending and investment.
