DeFi Technologies to Launch Validator Node, Stake $100M in Bitcoin

Toronto-based DeFi Technologies plans to launch a validator node on Core Chain and stake approximately $100 million in Bitcoin (BTC).

Through its subsidiary Valour, DeFi Technologies will validate transactions and earn staking rewards, according to a Tuesday press release. The staking will utilize 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 advancing our mission to bridge traditional finance with innovative blockchain technology,” said Olivier Roussy Newton, CEO of DeFi Technologies. “This approach offers our investors unique exposure to yield and growth within the digital asset space.”

Stakers to Receive CORE Tokens as Rewards

Stakers will maintain custody of their BTC during the lockup period and receive rewards in CORE tokens, which will be reinvested. The staked CORE tokens are expected to yield 11.66%.

To bolster security, 50% of the BTC mining hash power will be allocated to Core Chain. Currently, Core Chain has over 2,800 BTC staked, not including the upcoming stake from DeFi Technologies.

This initiative marks the second phase of collaboration between the two firms. On May 10, they launched the Valour Bitcoin Staking exchange-traded product (ETP) on the Nordic Growth Market exchange, offering a 5.65% yield with a 1.9% management fee.

DeFi Technologies Shifts Focus to Bitcoin

The launch of the validator node aligns with DeFi Technologies’ increased focus on BTC. Recently, the company adopted BTC as its primary treasury reserve asset and purchased 110 BTC as part of this strategy, leading to a 23% surge 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.

This trend follows other firms like MicroStrategy, Semler Scientific, and MetaPlanet, which have also adopted Bitcoin as their primary savings vehicle.