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CoreFi Strategy for Bitcoin Yield and BTCfi Exposure by DeFi Technologies

source-logo  blockchainreporter.net 15 November 2024 02:37, UTC

In a strategic move to deepen its presence in Bitcoin-focused financial products, DeFi Technologies has introduced CoreFi Strategy, a leveraged and regulated investment approach inspired by companies like MicroStrategy. This new strategy provides high-beta exposure to Bitcoin and the Core blockchain’s native asset, CORE, offering a novel opportunity for investors seeking amplified returns from Bitcoin yield within a regulated framework.

https://t.co/9TG2C5p5SF

— Core DAO 🔶 (@Coredao_Org) November 14, 2024

CoreFi Strategy is DeFi Technologies’ innovative approach to BTCfi, a fast-growing sector in the crypto space. Modeled after the successful Bitcoin-holding strategies of MicroStrategy and MetaPlanet, CoreFi allows for dual staking and leveraged BTC and CORE holdings. By focusing on BTCfi, CoreFi Strategy aims to give capital market participants access to regulated Bitcoin yield, aligning with DeFi Technologies’ mission to bridge traditional finance with decentralized assets.

According to DeFi Technologies CEO Olivier Roussy Newton, CoreFi Strategy represents a “unique opportunity” to harness the growing BTCfi market, offering investors a path similar to MicroStrategy’s early role in bringing Bitcoin exposure to Wall Street.

Core Blockchain’s Role in Sustainable Bitcoin Yield

The core blockchain, central to the core Fi strategy, is designed to enhance Bitcoin’s utility through non-custodial and dual staking. With over 8,200 BTC staked and 75% of Bitcoin mining hash power contributing to its ecosystem, Core has positioned itself as the most Bitcoin-aligned blockchain. Its model allows Bitcoin stakers who also hold CORE to benefit from higher Bitcoin yields, creating a sustainable staking environment within a high-upside Bitcoin ecosystem.

Core’s robust ecosystem includes over $700 million in total value locked (TVL), 1 million weekly active wallets, and more than 310 million transactions. This infrastructure supports CoreFi Strategy’s objectives, allowing it to maximize returns for investors while capitalizing on the Core blockchain’s integrated Bitcoin staking and yield opportunities.

Maximizing CORE Holdings with Leverage

CoreFi Strategy plans to actively acquire and hold CORE assets, utilizing smart leverage to enhance potential returns. Like MicroStrategy’s leveraged Bitcoin strategy, CoreFi’s approach aims to capture significant value by trading at a premium, outperforming standard Bitcoin returns. MicroStrategy’s stock, for example, has historically outperformed Bitcoin due to its focus on Bitcoin holdings, a performance trajectory CoreFi Strategy seeks to emulate with CORE assets.

As the BTCfi sector grows, CoreFi Strategy positions itself as a prime vehicle for investors looking to access Bitcoin yield and the unique benefits of Core’s ecosystem. The strategy’s alignment with BTCfi aims to deliver sustainable, high-beta returns by integrating regulated Bitcoin staking and yield into the capital markets.

blockchainreporter.net