As a seasoned financial analyst with over two decades of experience in traditional finance and emerging markets, I find DeFi Technologies’ approach to be both innovative and strategic. By creating SolFi, they are essentially following in MicroStrategy’s footsteps, which is a wise move given the success MicroStrategy has seen with its Bitcoin strategy.
DeFi Technologies, the firm that links conventional finance with cryptocurrencies through offering access to digital assets, unveiled a fresh system designed to incorporate Solana into their holdings.
On November 12th, DeFi Technologies unveiled the establishment of a new entity called SolFi. This spinout company is dedicated to implementing a treasury strategy centered around Solana (SOL). As explained in a blog post, SolFi aims to provide investors with an opportunity to invest directly in Solana and its associated ecosystem. This will encompass activities such as proprietary trading, managing validator nodes, and making investments within the Solana ecosystem.
The company aims to emulate the path taken by MicroStrategy, whose Bitcoin (BTC) approach has sparked similar tactics throughout the market. Metaplanet, also known as “Asia’s MicroStrategy” due to its significant Bitcoin acquisitions recently, serves as a prime illustration of this trend.
Microstrategy inspired approach
DeFi Technologies explains that SolFi will serve as their equivalent of MicroStrategy, focusing on the Solana network. This means the company can take advantage of Solana’s high-yield staking opportunities and growth potential. SolFi aims to utilize capital structures not typically accessible by exchange-traded funds, providing a way for investors to benefit from SOL’s projected gains and cash flow.
In a comment, DeFi Technologies chief executive officer Olivier Roussy Newton said:
Microstrategy’s prosperity has significantly boosted our investment in Bitcoin as the top digital currency. We are excited to tailor SolFi’s digital asset strategy, starting from scratch, towards Solana. Similar to Microstrategy, SolFi will generate income from a functioning company and seek innovative financing methods in the capital market, enabling us to expand our treasury swiftly and expedite our staking operations.
SolFi will help DeFi Technologies bring more value to its shareholders, he added.
In a recent move, MicroStrategy has added over 279,420 Bitcoins to its holdings, with a total value of about $2 billion. This significant increase in their Bitcoin assets was accumulated since August 2020, and the cost for these purchases amounts to approximately $11.9 billion.
12th November saw Michael Saylor, the founder of MicroStrategy, reveal that their treasury activities had generated a Bitcoin return of 26.4% since the start of the year. This has resulted in approximately 49,936 Bitcoins being distributed as a net gain to shareholders.
Saylor stated that this amounts to approximately 157.5 Bitcoins daily, a sum gained without the usual expenses and infrastructure requirements linked to Bitcoin mining.
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2024-11-13 00:28