Nikolas Sargeant
DeFi Technologies will validate transactions and earn staking rewards via Core Chain’s Ethereum Virtual Machine-compatible consensus mechanism on its BTC-powered blockchain.
“By staking 1,498 BTC and participating in network consensus, we are bridging traditional finance with innovative blockchain technology,” said Olivier Roussy Newton, CEO of DeFi Technologies.
“This strategy offers our investors unique exposure to yield and growth in the digital asset space.”
Stakers to Receive Rewards in CORE Tokens
During the lockup period, stakers will keep custody of their BTC holdings while earning rewards in CORE tokens, which will be reinvested. Staked CORE tokens will yield 11.66%.
To secure transactions, 50% of BTC mining hash power will be allocated to Core Chain. Core Chain currently has over 2,800 BTC staked, excluding DeFi Technologies' upcoming stake.
This collaboration follows their May 10 launch of the Valour Bitcoin Staking exchange-traded product (ETP) on the Nordic Growth Market, offering BTC exposure with a 5.65% yield and a 1.9% management fee. They plan to introduce a Core ETP providing yield through BTC staking.
Valour also offers ETPs backed by coins like Uniswap and Polkadot, and the Bitcoin Carbon Neutral (BTCN) basket.
DeFi Technologies Increases Focus on Bitcoin
Launching a validator node aligns with DeFi Technologies’ recent BTC-focused strategy. The company recently adopted BTC as its primary treasury reserve asset, purchasing 110 BTC and causing a 23% spike in its share price.
As of May 31, DeFi Technologies had $51 million in cash, while Valour managed $607 million in assets, up from $274 million in mid-March 2022.
Several firms, including Semler Scientific and MetaPlanet, have also adopted Bitcoin as their primary savings vehicle and are raising funds to buy more BTC.
