On Monday,
WonderFi Technologies Inc. (NEO: WNDR) announced it had received approval from its board of directors to purchase up to $10 million (CAD) in digital assets weighted across key assets that drive value in the decentralized finance (DeFi) sector, adding to its existing balance of long-term holdings.
The company said in
a news release that purchases will be executed using a dollar cost averaging strategy in order to mitigate short-term price volatility in the assets. The company also intends to generate yield on certain digital assets held in its treasury through staking and other DeFi mechanisms.
Driven by research and data insights from the sector, WonderFi’s crypto and DeFi asset allocation targets assets that provide long-term value. All assets are screened for technology risk, market risk and governance risk prior to acquisition and are monitored on an ongoing basis.
Last week, WonderFi closed a bought deal financing of approximately
$26 million (CAD) led by
Canaccord Genuity Corp. The majority of proceeds from the financing have been allocated to execution of WonderFi's product development roadmap and distribution of its products to a global audience, with a portion being allocated to growth of the company’s digital asset portfolio.