Core Insights - DeFi Technologies Inc. has launched eight new SEK-denominated exchange-traded products (ETPs) through its subsidiary Valour, expanding its offerings to over 75 ETPs and reinforcing its position in the digital asset market [1][2][9] Group 1: New ETP Listings - The newly listed ETPs include Valour Bitcoin Cash (BCH), Valour Unus Sed Leo (LEO), Valour OKB (OKB), Valour Polygon (POL), Valour Algorand (ALGO), Valour Filecoin (FIL), Valour Arbitrum (ARB), and Valour Stacks (STX) [9][10] - These ETPs provide regulated, exchange-traded access to leading blockchain protocols and infrastructure projects, catering to growing investor demand for diversified digital asset exposure [9][14] Group 2: Market Position and Goals - Valour aims to achieve 100 listed ETPs by the end of 2025, with the recent additions solidifying its leadership in the regulated digital asset investment space [14][15] - The company has surpassed 75 ETPs, delivering the broadest lineup of digital asset ETPs across major European exchanges, including Spotlight Stock Market, Börse Frankfurt, and Euronext [14][15] Group 3: Executive Commentary - Johanna Belitz, Head of Nordics at Valour, highlighted the strong demand in the Nordic market for transparent and regulated exposure to digital assets [13] - Elaine Buehler, Head of Product at Valour, emphasized the strategic curation of products that reflect the evolving architecture of Web3, aiming to provide compliant exposure to foundational infrastructure and high-utility ecosystem tokens [13]

TORONTO, June 18, 2025 (GLOBE NEWSWIRE) -- DeFi Technologies Inc. (the "Company" or "DeFi Technologies") (Nasdaq: DEFT) (CBOE CA: DEFI) (GR: R9B), a financial technology company bridging the gap between traditional capital markets and decentralized finance ("DeFi"), is pleased to announce that its subsidiary, Valour Inc., and Valour Digital Securities Limited (together, "Valour"), a leading issuer of exchange traded products ("ETPs") has launched four new SEK-denominated ETPs on the Spotlight Stock Market i ...

[Financial Statements](index=4&type=section&id=Financial%20Statements) [Statement of Financial Position](index=4&type=section&id=Condensed%20consolidated%20interim%20statements%20of%20financial%20position) Total assets decreased to $1.04 billion, liabilities to $960.4 million, while equity significantly increased to $79.7 million Financial Position Highlights | Financial Position Highlights | March 31, 2025 ($) | December 31, 2024 ($) | | :--- | :--- | :--- | | **Total Assets** | **1,040,124,824** | **1,317,366,412** | | Digital Assets (Current & Non-Current) | 664,810,958 | 799,796,591 | | Equity investments in digital assets, at FVTPL | 226,175,101 | 370,408,924 | | **Total Liabilities** | **960,414,160** | **1,294,214,985** | | ETP holders payable | 921,440,301 | 1,253,515,501 | | **Total Equity** | **79,710,664** | **23,151,427** | [Statement of Operations and Comprehensive Loss](index=5&type=section&id=Condensed%20consolidated%20interim%20statements%20of%20operations%20and%20comprehensive%20loss) Q1 2025 net income of $43.1 million reverses Q1 2024's $18.0 million loss, driven by fair value changes Income Statement Highlights | Income Statement Highlights | Q1 2025 ($) | Q1 2024 ($) | | :--- | :--- | :--- | | Total Revenues | 62,658,562 | (4,922,567) | | Staking and lending income | 14,039,548 | 5,808,001 | | Total Expenses | 18,529,807 | 13,119,189 | | **Net Income (Loss) for the period** | **43,056,392** | **(18,041,756)** | | **Basic Income (Loss) per share** | **0.13** | **(0.06)** | | Diluted Income (Loss) per share | 0.12 | (0.06) | [Statement of Cash Flows](index=6&type=section&id=Condensed%20consolidated%20interim%20statements%20of%20cash%20flows) Q1 2025 saw a net cash outflow of $2.9 million, with operating activities using $78.3 million offset by $75.8 million from financing Cash Flow Summary | Cash Flow Summary | Q1 2025 ($) | Q1 2024 ($) | | :--- | :--- | :--- | | Net cash (used in) operating activities | (78,294,898) | (57,050,633) | | Net cash provided by investing activities | (783,169) | 319,643 | | Net cash provided by financing activities | 75,763,595 | 59,312,083 | | **Change in cash and cash equivalents** | **(2,927,263)** | **2,685,380** | | **Cash and cash equivalents, end of period** | **19,996,609** | **9,412,862** | [Statement of Changes in Equity](index=7&type=section&id=Condensed%20consolidated%20interim%20statements%20of%20changes%20in%20equity) Total equity increased to $79.7 million in Q1 2025, primarily driven by $43.1 million in net income - Total equity grew by **$56.6 million** in Q1 2025, primarily due to a net income of **$43.1 million**[9](index=9&type=chunk) - Share capital increased by over **$9 million** from share issuances related to acquisitions, DSU exercises, and option exercises[9](index=9&type=chunk) [Notes to the Financial Statements](index=8&type=section&id=Notes%20to%20the%20condensed%20consolidated%20interim%20financial%20statements) [Nature of Operations and Going Concern](index=8&type=section&id=1.%20Nature%20of%20operations%20and%20going%20concern) DeFi Technologies, a DeFi-focused tech company, faces going concern doubts due to a $135.0 million working capital deficiency - The company's business model involves issuing ETPs, investing in DeFi protocols, and providing research[10](index=10&type=chunk) - A working capital deficiency of **$135.0 million** was reported as of March 31, 2025[11](index=11&type=chunk) - Management has identified material uncertainties that cast significant doubt on the company's ability to continue as a going concern[11](index=11&type=chunk) [Material Accounting Policies](index=8&type=section&id=2.%20Material%20accounting%20policy%20information) Q1 2025 adoption of SAB 122 de-recognized client digital assets; company digital assets are fair valued as commodity broker-trader inventory - In Q1 2025, the company adopted SAB 122, removing client digital assets and safeguarding liabilities from its statement of financial position. This was applied retrospectively to the Dec 31, 2024 balance sheet[24](index=24&type=chunk)[26](index=26&type=chunk) - Digital assets are accounted for as inventory under IAS 2 and measured at fair value through profit or loss (FVTPL), as the company acts as a commodity broker-trader[28](index=28&type=chunk) - ETP holders payable are also measured at FVTPL, with fair value determined by the underlying digital asset's price less accumulated management fees[29](index=29&type=chunk)[34](index=34&type=chunk) [Investments (FVTPL)](index=13&type=section&id=5.%20Investments%2C%20at%20fair%20value%20through%20profit%20and%20loss) Private investments totaled $53.9 million, with Amina Bank AG comprising 94.7%, and a $674k realized loss recognized in Q1 2025 Private Investment Portfolio | Private Investment | Fair Value (Mar 31, 2025) | % of Total | | :--- | :--- | :--- | | Amina Bank AG | $51,020,503 | 94.7% | | ZKP Corporation | $1,437,600 | 2.7% | | Luxor Technology Corporation | $719,522 | 1.3% | | 3iQ Corp. | $431,940 | 0.8% | | Other | $287,340 | 0.5% | | **Total** | **$53,896,906** | **100.0%** | - In Q1 2025, the company recorded a realized loss of **$673,967** and an unrealized gain of **$3,809** on its private and public investments[44](index=44&type=chunk) [Digital Assets and Equity Investments in Digital Assets](index=14&type=section&id=6.%20Digital%20Assets%2C%20Digital%20Assets%20Loaned%2C%20and%20Digital%20Assets%20Staked) Total digital asset exposure decreased to $891.0 million due to unrealized losses, impacting direct holdings and equity investments [Digital Asset Holdings](index=14&type=section&id=Digital%20Asset%20Holdings) Direct digital asset holdings decreased to $664.8 million due to $268.5 million in unrealized losses, with Bitcoin as the largest position Digital Asset Continuity | Digital Asset Continuity | Q1 2025 ($) | | :--- | :--- | | Opening balance (Dec 31, 2024) | 799,796,591 | | Digital assets acquired | 81,793,771 | | Digital assets disposed | (14,760,791) | | Staking, lending, and fee income | 14,039,548 | | Realized gain on digital assets | 39,111,070 | | **Net change in unrealized losses** | **(268,506,435)** | | **Closing balance (Mar 31, 2025)** | **664,810,958** | Top 5 Digital Asset Holdings | Top 5 Digital Asset Holdings | Fair Value (Mar 31, 2025) ($) | | :--- | :--- | | Bitcoin (BTC) | 296,891,716 | | Cardano (ADA) | 65,904,078 | | Ripple (XRP) | 63,020,370 | | Sui (SUI) | 44,035,063 | | Ethereum (ETH) | 56,025,296 | - As of March 31, 2025, the company had **$87.4 million** in digital assets loaned out and **$276.5 million** in digital assets staked[53](index=53&type=chunk) [Equity Investments in Digital Assets (FVTPL)](index=22&type=section&id=7.%20Equity%20investments%20in%20digital%20assets%20at%20fair%20value%20through%20profit%20and%20loss%20%28FVTPL%29) Equity investments in locked SOL/AVAX decreased to $226.2 million, resulting in a $130.4 million unrealized loss - The fair value of equity investments in digital assets (primarily locked SOL and AVAX) decreased from **$370.4 million** to **$226.2 million** in Q1 2025[66](index=66&type=chunk) - This decrease resulted in an unrealized loss of **$130.4 million** recognized in the income statement for the quarter[7](index=7&type=chunk)[95](index=95&type=chunk) - The underlying Solana and Avalanche tokens are locked and will be released in monthly/weekly increments through 2027-2028[68](index=68&type=chunk)[69](index=69&type=chunk)[72](index=72&type=chunk) [Acquisitions](index=23&type=section&id=8.%20Acquisitions) In Q1 2025, the company gained control of Neuronomics AG, recognizing $4.2 million in goodwill - On March 7, 2025, the company increased its stake in Neuronomics AG to **52.5%**, gaining control[82](index=82&type=chunk) - The acquisition resulted in the consolidation of Neuronomics and the recognition of **$4.18 million** in goodwill[84](index=84&type=chunk) [ETP Holders Payable](index=27&type=section&id=12.%20ETP%20holders%20payable) ETP holders payable decreased to $921.4 million, fully hedged by underlying digital assets, with Solana and Bitcoin ETPs being largest - ETP holders payable, the company's largest liability, decreased from **$1.25 billion** to **$921.4 million** in Q1 2025[91](index=91&type=chunk) - The company's policy is to hedge **100%** of the market risk by holding the underlying digital assets for its ETPs[92](index=92&type=chunk) Top 5 ETPs by Value | Top 5 ETPs by Value | Fair Value (Mar 31, 2025) ($) | | :--- | :--- | | Valour Solana SEK | 273,310,644 | | Valour Bitcoin Zero SEK | 265,682,548 | | Valour Cardano SEK | 63,827,150 | | Valour Ripple SEK | 62,424,382 | | Valour Ethereum Zero SEK | 51,676,087 | [Share-Based Payments](index=30&type=section&id=19.%20Share-based%20payments%20reserves) Share-based payment expenses significantly increased to $7.3 million in Q1 2025, driven by new stock option and DSU grants - Total share-based payment expense was **$7.34 million** in Q1 2025, up from **$1.62 million** in Q1 2024[7](index=7&type=chunk) - In Q1 2025, the company granted **1.3 million** stock options and **1.5 million** DSUs[102](index=102&type=chunk)[117](index=117&type=chunk) - The expense was composed of **$3.2 million** for stock options and **$4.1 million** for DSUs[113](index=113&type=chunk)[126](index=126&type=chunk) [Financial Instruments and Risk Management](index=34&type=section&id=20.%20Financial%20instruments) The company faces significant liquidity, market, and currency risks, with a $135 million working capital deficiency and volatile digital assets - The company faces significant liquidity risk, with current liabilities of **$1.04 billion** exceeding current assets of **$825.4 million**, resulting in a working capital deficiency of **$135.0 million**[132](index=132&type=chunk)[133](index=133&type=chunk)[134](index=134&type=chunk) - The company has substantial currency risk. A **10%** strengthening of the Canadian dollar against foreign currencies would result in an estimated **$22.8 million** decrease in net income[140](index=140&type=chunk) Fair Value Hierarchy | Fair Value Hierarchy (Mar 31, 2025) | Value ($) | | :--- | :--- | | Level 1 (Quoted Market Price) | - | | Level 2 (Observable Inputs) | 664,810,958 | | Level 3 (Non-observable Inputs) | 280,072,007 | | **Total** | **944,882,965** | [Operating Segments](index=45&type=section&id=25.%20Operating%20segments) Valour Inc. dominates segments with $60.3 million revenue and $56.6 million net income in Q1 2025, while corporate segment incurred a loss Segment Performance (Q1 2025) | Segment Performance (Q1 2025) | Total Revenue ($) | Net Income (Loss) After Tax ($) | | :--- | :--- | :--- | | Valour Inc. | 60,343,523 | 56,553,251 | | Stillman Digital | 3,077,756 | 483,132 | | Reflexivity | 262,230 | (113,430) | | DeFi (Corporate) | (912,940) | (13,626,355) | | Neuronomics | 27,288 | (52,182) | | **Total** | **62,658,562** | **43,056,392** | [Earnings Per Share](index=47&type=section&id=26.%20Earning%20per%20share) Q1 2025 basic EPS was $0.13 and diluted EPS was $0.12, a significant improvement from Q1 2024's loss per share Earnings Per Share Summary | Earnings Per Share | Q1 2025 ($) | Q1 2024 ($) | | :--- | :--- | :--- | | Net Income (Loss) for calculation | 43,056,392 | (18,041,756) | | Weighted Average Shares (Basic) | 323,886,775 | 284,134,127 | | Weighted Average Shares (Diluted) | 366,973,751 | 284,134,127 | | **Basic EPS** | **0.13** | **(0.06)** | | **Diluted EPS** | **0.12** | **(0.06)** |