DeFi Technologies, a Canadian company, is making Bitcoin its main savings account for the company.
DeFi Technologies from Canada switched its main savings account (treasury reserve) to Bitcoin. They recently bought 110 Bitcoin and their subsidiary smartly paid off $5 million in debt. This decision reflects a growing trend – other big players like Semler Scientific and a Wisconsin pension fund are also jumping on the Bitcoin bandwagon.
The news of DeFi Technologies’ switch sent their stock price soaring, a clear sign that investors are confident in this move. With more and more institutions showing interest in Bitcoin, it appears to be gaining wider acceptance as a legitimate investment.
DeFi Technologies: Market Reaction
DeFi Technologies got a stock price boost after announcing Bitcoin as their main reserve. Shares jumped on both Canadian stock exchanges and US over-the-counter markets, reaching around $1.57 on the US OTC markets.
The Broader Institutional Adoption of Bitcoin
Just like, DeFi Technologies, big companies are starting to invest in Bitcoin. This is a big trend. Some companies, like Semler Scientific, saw their stock price rise after purchasing Bitcoin. Even huge investment funds are getting involved, like the one in Wisconsin which invested $164 million in a Bitcoin fund.
Bitcoin gained popularity among major institutions
Other companies like Semler Scientific have also started using Bitcoin and their share prices have also increased. Even government groups like the Wisconsin State Investment Board and Japan’s Government Pension Investment Fund are thinking about using Bitcoin.
Bitcoin ETFs: A Proxy for Institutional Sentiment
Bitcoin investments by companies like DeFi technologies are a sign that more and more large institutions are interested in Bitcoin. This is a hot topic at the moment. To show you how strong this trend is, consider this: In the first week of June, Bitcoin ETFs acquired more Bitcoins than were created by miners in two months! This shows that big money managers are feeling confident about Bitcoin.
The transfer of $22 million assets to Bitcoin is a very strong statement for BTC bullish rally. Investors however need to remember Bitcoin nature is highly volatile. Investors are advised to do their own research or seek a financial advice before investing.
Also Read: Polygon Matic: Polygon Overtakes Ethereum in Key Sector
