Toronto-based digital asset company DeFi Technologies is gearing up to debut a validator node on Core Chain, alongside staking close to $100 million in Bitcoin (BTC).
As announced in a press release on Tuesday, DeFi Technologies, via its subsidiary Valour, will not only validate transactions but also reap staking rewards for its active involvement.
The staking process will run smoothly thanks to Core Chain’s Ethereum Virtual Machine-compatible consensus mechanism, operating on its layer-1 BTC-powered blockchain.
Olivier Roussy Newton, CEO of DeFi Technologies, expressed, “By staking 1,498 BTC and engaging in network consensus, we are furthering our mission to connect traditional finance with cutting-edge blockchain technology. This approach presents our investors with unparalleled exposure to both yield and growth within the digital asset arena.”
Stakers to Recieve Rewards in CORE Tokens
Throughout the lockup period, stakers will maintain custody of their BTC holdings while earning rewards in CORE tokens, which will then be reinvested into the product.
Staking CORE tokens will yield a reward of 11.66%.
To safeguard transaction security and the integrity of the blockchain, Core Chain will allocate 50% of the BTC mining hash power.
At present, Core Chain boasts over 2,800 BTC staked, with DeFi Technologies’ forthcoming stake not yet included.
This collaboration signifies the second phase in the partnership between the two entities.
On May 10, they collaboratively launched the Valour Bitcoin Staking exchange-traded product (ETP) on the Nordic Growth Market exchange, with the Swedish krona as its base currency.
The Valour ETP, hailed as the premier yield-bearing BTC ETP, grants exposure to BTC with a 5.65% yield and a 1.9% management fee.
Furthermore, the partners aim to introduce a Core ETP that will yield through BTC staking.
Valour already provides ETPs backed by other coins such as Uniswap and Polkadot, along with a 10-coin basket called Bitcoin Carbon Neutral (BTCN) and the STOXX Bitcoin Suisse Digital Asset Blue Chip X Index.
Some of these offerings carry no management fee.
DeFi Technologies Increases Focus on Bitcoin
DeFi Technologies’ launch of a validator node aligns seamlessly with its recent pivot towards a heightened emphasis on BTC.
Just days ago, the company disclosed its decision to designate BTC as its primary treasury reserve asset, accompanying the move with the purchase of 110 BTC as part of its revamped strategy.
This announcement triggered a notable 23% surge in DeFi Technologies’ share price.
By May 31, DeFi Technologies boasted a cash balance of $51 million, while Valour oversaw $607 million in assets under management (AUM).
This marks a significant upswing for Valour, considering its AUM tallied at $274 million in mid-March 2022.
In the past couple of months, numerous firms, following in the footsteps of the renowned MicroStrategy, have opted to embrace Bitcoin as their primary avenue for safeguarding excess cash. Among these firms are US healthcare company Semler Scientific and Japanese investment entity MetaPlanet.
Both MetaPlanet and Semler have exhibited a readiness to tap into capital markets to secure funds for acquiring additional BTC, rather than relying solely on corporate profits.
