Highlights:
- DeFi Technologies launches CoreFi Strategy offering leveraged Bitcoin gains through regulated Core blockchain assets.
- CoreFi Strategy aligns with MicroStratergy’s approach to accumulating Bitcoin and CORE to maximize returns.
- Through BTCfi’s ecosystem, Core’s investors will access enhanced staking yields through dual-stake models.
DeFi Technologies has launched CoreFi Strategy, a new publicly traded company offering regulated, leveraged access to Bitcoin yields through the Core blockchain’s BTCfi ecosystem. CoreFi Strategy is scheduled to be listed on a Canadian stock exchange in early 2025. CoreFi Strategy aims to offer investors higher beta Bitcoin exposure by accumulating and dual-staking both BTC and CORE, the Core blockchain native token.
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Canadian listed company DeFi Technologies announced the launch of CoreFi Strategy, which draws on the MicroStrategy model to provide a leveraged and compliant return path for Bitcoin and Core blockchain's native asset CORE, and will focus on the BTCfi field.…
— Wu Blockchain (@WuBlockchain) November 14, 2024
Inspired by Successful Bitcoin Investment Models
CoreFi Strategy models its approach after the successful strategies of firms like MicroStrategy and MetaPlanet. These firms have outperformed Bitcoin by leveraging capital markets and accumulating large Bitcoin holdings. Using innovative financing techniques, CoreFi Strategy plans to expand its BTC and CORE treasury holdings to boost investor potential returns.
Olivier Roussy Newton, CEO of DeFi Technologies, commented:
“CoreFi Strategy offers a unique opportunity to participate in the BTCfi revolution and benefit from Core’s growth trajectory. The Bitcoin staking ecosystem can now bring higher yield potential to investors, similar to how MicroStrategy unlocked Bitcoin exposure for traditional markets.”
Leveraging Core Blockchain’s Advanced Staking Mechanisms
The Core blockchain is closely aligned with Bitcoin, integrating non-custodial staking and dual staking with substantial support from the Bitcoin mining community. With 8,200 staked Bitcoin in circulation and over 75% of Bitcoin mining hash power securing its infrastructure, Core has established a robust and secure ecosystem. The platform boasts over $700 million in total value locked (TVL), over 1 million weekly active wallets, over 310 million total transactions, and over 100 applications.
Core’s recent integration of dual staking enables Bitcoin stakers who also stake CORE tokens to earn higher Bitcoin staking rates. This feature makes CORE crucial to unlocking sustainable Bitcoin yields. CoreFi Strategy seeks to capitalize on this synergy to offer investors enhanced yield potential within a regulated environment.
Previous Initiatives and Market Momentum
Earlier this year, Valour Inc, a subsidiary of DeFi Technologies, launched the first yield-bearing Bitcoin exchange-traded product (ETP) utilizing Core’s non-custodial Bitcoin staking product. This ETP offers investors a 5.6% yield on their BTC holdings.
Consequently, this offers a regulated avenue to make profits on BTC investments. In addition, Valour introduced a CORE ETP, granting institutional investors exposure to the CORE token through traditional brokerage accounts, available on Börse Frankfurt for German investors.
Companies that have succeeded in leveraging capital markets and outperforming the returns of Bitcoin, include MicroStrategy and MetaPlanet. MicroStrategy’s stock has risen over 600% over the past year, outpacing Bitcoin’s performance. Moreover, the stock of MetaPlanet increased by more than 900%. This examples demonstrate the opportunity for companies to amplify returns by accumulating Bitcoin and employing strategic funding.
CoreFi Strategy’s Role in the BTCfi Ecosystem
CoreFi Strategy becomes a prime medium for investors in need of higher beta Bitcoin exposure by offering regulated access to the BTCfi sector. The firm’s approach of accumulating BTC and CORE, dual stakes these assets and using innovative finance methods further enhance treasury holdings. This method aims to reproduce success of prior models while leveraging Core blockchain’s unique features.
DeFi Technologies trades in Canada under CBOE and over-the-counter in the United States. As of July 31, the company said it had CA$837 million of assets under management. Analysts expect the firm’s assets under management to rise due to continued ETP launches and appreciation in the prices of underlying crypto tokens.
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