As a seasoned analyst with years of experience in the cryptocurrency market, I find the strategic move by DeFi Technologies to establish SolFi as a “Microstrategy for Solana” quite intriguing. Having witnessed the remarkable success story of MicroStrategy’s BTC strategy, it is clear that DeFi Technologies aims to replicate this model in the Solana ecosystem.
As a crypto investor, I’ve recently learned about the establishment of a new venture by DeFi Technologies, a leading crypto investing platform. Dubbed SolFi, this company is envisioned to serve as the “Microstrategy equivalent for Solana” (SOL). This exciting announcement was made on November 12th.
In simpler terms, SolFi is a separate entity that originated from DeFi Technologies. Its main goal is to allow investors to directly engage with the Solana blockchain network by means of exclusive trading, managing validator nodes, and investing in the Solana ecosystem. This was stated by DeFi Technologies.
As a dedicated researcher delving into the world of decentralized finance (DeFi), I’m excited to highlight an innovative project named SolFi. This platform is poised to challenge existing SOL staking platforms in the market. However, what sets SolFi apart is its commitment to offering higher returns on staked SOL compared to its contemporaries, a key differentiator we at DeFi Technologies believe will make it stand out.
According to SolFi Technologies, they aim to produce a steady income with higher returns compared to other staking service providers, by using DeFi technologies and their own Maximum Extractable Value (MEV) engine to validate transactions on the Solana blockchain. These earnings can either be reinvested or distributed as dividends to shareholders.
Related: MicroStrategy’s $42B Bitcoin bet is bullish for shareholders — Analyst
According to DeFi Technology’s CEO, Olivier Roussy Newton, Microstrategy’s success has significantly increased our involvement with Bitcoin as the top digital asset. We are excited to refocus SolFi’s strategy for digital assets, starting from scratch, on the Solana platform.
Similar to MicroStrategy, SolFi intends to create income from an operational business. Furthermore, it plans to innovatively structure its finances through the capital markets, enabling SolFi to expand its financial reserves swiftly and speed up its staking activities.
Since 2020, shares of Microstrategy have skyrocketed over 2000%, soaring high due to the company’s decision to heavily invest in Bitcoin following its initial role as a software provider.
Its stock, MSTR trades at $356 per share as of Nov. 12, versus less than $15 per share in 2020.
On their August 1st earnings conference call, MicroStrategy emphasized their continued investment in Bitcoin by setting a distinctive benchmark: Bitcoin return on investment (ROI).
As a crypto investor, I find that Bitcoin’s yield is a crucial metric which represents the quantity of Bitcoins held relative to the number of outstanding company shares. Essentially, this ratio establishes Bitcoin-per-share as a benchmark for evaluating corporate success and growth.
On Oct. 30, Microstrategy tipped plans to buy up $42 billion of BTC over the next three years.
Enthusiastic investors foresee Solana reaching over $600 by the end of its cycle, according to MV Global, a company specializing in Web3 investments, as reported by CryptoMoon.
According to Tom Dunleavy, a managing partner at MV Global, there’s widespread agreement among nearly all the investors (allocators) we consulted that Solana is a reliable consensus choice.
On July 9th, DeFi Technologies announced they would acquire Stillman Digital’s trading desk in a stock transaction. Analysts predict this move will make DeFi Technologies resemble a scaled-down version of Galaxy Digital within the Canadian cryptocurrency landscape.
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2024-11-12 23:06