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DeFi Technologies is set to replicate MicroStrategy's success with the upcoming launch of CoreFi Strategy, as announced by Jason Shubnell.
CoreFi Strategy will give investors a chance to gain higher beta Bitcoin exposure through the Core blockchain. On Thursday, DeFi Technologies announced plans for this new public company. It aims to provide access to Core, a key player in bitcoin staking and decentralized finance (BTCfi).
This initiative is scheduled to launch in the first quarter of 2025 on a Canadian stock exchange. According to a press release seen by The Block, CoreFi Strategy is modeled after the investment strategies of companies like MicroStrategy and MetaPlanet. It offers a path to bitcoin yields through investments in both BTC and CORE, the native asset of the Core blockchain.
CoreFi Strategy plans to accumulate BTC and CORE. It will leverage financing strategies to build its treasury and provide regulated exposure to BTCfi. “This launch represents a unique opportunity to participate in the BTCfi space and benefit from Core’s growth trajectory,” said Olivier Roussy Newton, CEO of DeFi Technologies, in a press release. “We believe CoreFi Strategy can offer investors a way to capture value in the bitcoin staking ecosystem, similar to how MicroStrategy unlocked bitcoin exposure for traditional markets.”
Like MicroStrategy and MetaPlanet, CoreFi Strategy intends to acquire and hold CORE assets while using smart leverage. MicroStrategy and MetaPlanet's stocks have surged more than 500% over the past year, outpacing bitcoin's 150% return. CoreFi Strategy aims to replicate this success by giving investors access to CORE's yield generation.
Currently, Core has over 8,200 staked bitcoins and boasts a total value locked (TVL) of over $700 million. Core’s recent Dual Staking integration allows bitcoin stakers who also hold CORE tokens to achieve higher staking yields.
DeFi Technologies trades in Canada under CBOE:DEFI and over-the-counter in the U.S. As of July 31, it reported having CA$837 million in assets under management. In an August 27 note, Benchmark analyst Mark Palmer reiterated a "buy" rating on the stock.
“We expect the company’s AUM to continue to expand in the coming quarters due to ongoing new ETP launches and appreciation in the prices of the crypto tokens underlying those products,” Palmer noted to clients. “DEFI generates revenue by staking most of the assets invested in its ETPs to earn yields ranging from the low single digits to the mid-teens, depending on the asset.”
Recently, the Tokyo-listed MetaPlanet invested an additional $10.4 million in bitcoin. This brings its total holdings to 1,018.17 BTC, valued at $68.8 million as of October 28. MicroStrategy also added about 27,200 bitcoins for roughly $2.03 billion. As of November 11, MicroStrategy holds around 279,420 bitcoins, purchased for an approximate total of $11.9 billion.