Financial Data and Key Metrics Changes - As of September 30, 2025, the company reported Assets Under Management (AUM) of $989.1 million, with Q3 average AUM increasing to $950.7 million from $760.2 million in Q2 and $789 million in Q1, driven by crypto price movements and positive cash flows into ETP products [3][10] - Q3 revenue was $22.5 million, bringing cumulative IFRS revenues for the nine months ended September 30 to $80 million [3][10] - The effective staking and lending income yield decreased to 3.1% from 3.6% in Q2, attributed to lower protocol rewards [3][4] - Operating income for Q3 was $9 million, with a net income after tax of $3.9 million for the quarter [6][10] Business Line Data and Key Metrics Changes - The company staked approximately 58% of its AUM at the end of Q3, adjusting staking percentages in line with market conditions [4] - The effective management fee yield increased slightly to 1.2% from 1.1% in Q2 due to new management fee-bearing products [4] - The company closed Q3 with 99 products and reached its goal of 100 products in October 2025 [4] Market Data and Key Metrics Changes - The company noted a bullish outlook for cryptocurrency prices, with Bitcoin holding around $100,000, and expects increased institutional and retail participation [6][10] - The venture portfolio consists of 12 private investments, with Amina Bank being the largest, representing 83% of the portfolio's fair value [7] Company Strategy and Development Direction - The company aims to maximize AUM and monetization through new product launches and expanding into new markets, particularly in Europe [39][40] - The recent $100 million equity financing will support increased staking and facilitate ETP market making [8][9] - The company is actively seeking creative M&A opportunities to strengthen its position and expand its offerings [9][58] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the core revenue forecast of $116.6 million for 2025, despite delays in DeFi Alpha opportunities [5][13] - The company is optimistic about the potential for institutional participation in Europe, which could expand the addressable market [43] - Management highlighted the importance of maintaining a strong balance sheet to capitalize on growth opportunities and provide downside protection [9][12] Other Important Information - The company repurchased nearly one million shares for $2.44 million during the quarter [12] - The transition of CEO leadership from Olivier Roussy Newton to Johan Wattenstrom was announced, with a focus on continuing the company's growth trajectory [14][15] Q&A Session Summary Question: Do Alpha trades carry a liquidity or price liability? - The company has hedged all market risk for core operations, retaining some profit in tokens which may fluctuate with the market [34][35] Question: What key message do you want to give long-term shareholders? - The long-term core strategy remains focused on maximizing AUM and monetization through new products and vehicles for capital participation [39][40] Question: Can you provide insight on the investment pipeline? - The company is actively looking at various opportunities but remains selective, ensuring that any potential acquisition aligns with long-term strategic goals [56][58]

Core Insights - DeFi Technologies Inc. reported financial performance for Q3 2025, highlighting strong revenue and operating income despite a revision in revenue guidance for the year [1][3][4] Financial Performance - Revenue for Q3 2025 was $22.5 million, a decrease from $28.1 million in Q3 2024, primarily due to lower realized gains on digital assets [4] - Operating income for Q3 2025 was $9 million, down from $14.4 million in Q3 2024, reflecting a decrease in total revenues [4] - Year-to-date revenue for 2025 reached $80 million, compared to $51.3 million for the same period in 2024, indicating overall growth in profitability [4] Asset Management and Growth - Valour's asset management business reported approximately $989.1 million in assets under management (AUM) as of September 30, 2025, up from $772.9 million as of June 30, 2025 [3][13] - The company achieved net inflows of $38.8 million for the quarter, totaling $116.2 million year-to-date [3] Revenue Guidance and Market Conditions - The company revised its 2025 revenue guidance from $218.6 million to $116.6 million due to delays in executing DeFi Alpha arbitrage opportunities and market conditions affecting trading spreads [3][14] - The strong balance sheet, bolstered by a recent $100 million equity financing, positions the company to compete for future high-margin arbitrage opportunities [3][14] CEO Transition - Johan Wattenström has been appointed as the new CEO and Executive Chairman, succeeding Olivier Roussy Newton, who will remain as a strategic advisor [3][34][35] Strategic Initiatives - Valour continues to expand its ETP offerings, having met its forecast of 100 ETPs listed across European and UK exchanges [15] - The company is executing a growth strategy that includes expansion into high-growth regions such as Africa, Asia, and the Middle East [16][18] Investor Demand and Performance - Valour's ETP business has seen significant growth, with inflows reaching $116.2 million as of September 2025, reflecting a strong market position [19] - Stillman Digital generated $6.1 million in revenue for the nine months ended September 30, 2025, with expectations to close 2025 with approximately $8.6 million [20] DeFi Alpha and Arbitrage Strategy - DeFi Alpha executed trades with significant discounts, enhancing the company's financial position despite delays in arbitrage opportunities due to market conditions [24][25] - The strategy focuses on leveraging the company's balance sheet to capitalize on market opportunities, providing a competitive edge [26] Research and Advisory Services - Reflexivity Research is expanding its distribution and enhancing its product offerings to drive growth [27][30] - DeFi Advisory has secured mandates with two clients and is well-positioned to expand its client base [33]

Financial Performance - Total revenues for Q3 2025 reached $22,527,831, a decrease of 20.5% compared to $28,152,839 in Q3 2024[4] - The company reported a net income of $3,935,906 for Q3 2025, down from $15,445,688 in Q3 2024, reflecting a decline of 74.5%[4] - Basic earnings per share for Q3 2025 were $0.01, down from $0.05 in Q3 2024, a decrease of 80%[4] - For the nine months ended September 30, 2025, DeFi Technologies reported a net income of $32,647,548 compared to a net loss of $3,906,181 for the same period in 2024, indicating a significant turnaround in performance[5]. - The company achieved a net income and comprehensive income of $33,790,050 for the nine months ended September 30, 2025, compared to a net loss of $5,297,555 for the same period in 2024[8] Assets and Liabilities - Total current assets rose to $948,395,427 as of September 30, 2025, up from $710,993,671 at the end of 2024, marking an increase of 33.5%[3] - The total liabilities increased to $1,084,042,494 as of September 30, 2025, compared to $899,447,480 at the end of 2024, an increase of 20.5%[3] - The company’s total equity increased to $117,717,967 as of September 30, 2025, compared to $19,144,197 at the end of 2024, reflecting a growth of 515.5%[3] - As of September 30, 2025, the company reported a working capital deficiency of $132,955,851, an improvement from a deficiency of $188,453,809 as of December 31, 2024[8] - The company has cash reserves of $119,541,083 as of September 30, 2025, significantly up from $15,931,525 as of December 31, 2024[8] Digital Assets - Digital assets held increased significantly to $445,126,641 as of September 30, 2025, compared to $276,853,787 at the end of 2024, representing a growth of 60.7%[3] - The fair value of the company's digital assets increased to $789,254,841 as of September 30, 2025, from $555,838,900 on December 31, 2024[53] - The company’s total digital asset holdings as of September 30, 2025, include a diverse range of cryptocurrencies, with significant increases in value for several key assets[55] - Digital assets loaned surged to $163.45 million compared to $38.62 million in the previous year, marking an increase of 323.5%[57] - The company has loaned digital assets with a fair value of $232,654,637 as of September 30, 2025, compared to $38,618,758 as of December 31, 2024, indicating a substantial increase of approximately 503.5%[64] Investments and Acquisitions - The company engaged in acquisitions, including Neuronomics, which contributed to the increase in total equity and diversification of its asset portfolio[6]. - The Company invested $61,741,683 in Fund A, acquiring 491,249 Solana at $105 each and 931,446 Avalanche at $11 each during 2024[70] - The acquisition of Reflexivity LLC on February 6, 2024, involved issuing 5,000,000 common shares valued at $2,450,000, with total net assets acquired also valued at $2,450,000[78][79] - The Company increased its stake in Neuronomics AG from 10% to 52.5% after an investment of $288,727, with additional cash considerations of $816,372 and shares valued at $442,722[87][88] - The Company received a distribution of $71,685,819 from Fund B in July 2025[76] Shareholder Equity and Stock Options - The company issued 45,662,101 units in a private placement at $2.19 per unit, generating gross proceeds of $100,000,001 on September 26, 2025[114] - As of September 30, 2025, the total number of issued and outstanding shares increased to 384,375,991, with a total share capital amounting to $220,088,856[109] - The Company recorded an estimated fair value of $1,784,168 for 500,000 stock options that were cancelled due to a failed merger and acquisition transaction[136] - The Company granted 1,200,000 stock options to various consultants at an exercise price of CAD$4.52, with an estimated grant date fair value of $3,591,500[121] - The Company recorded $6,528,831 in share-based compensation related to Deferred Share Units (DSUs) during the nine months ended September 30, 2025, compared to $5,774,343 for the same period in 2024, representing an increase of approximately 13.1%[151] Market and Currency Risks - The company does not engage in any hedging activities to mitigate currency risk, which primarily arises from fluctuations in the Canadian dollar, Euro, Swiss Franc, Swedish Krona, and British Pound[163] - A 10% increase in the value of the US dollar against all foreign currencies would result in an estimated increase in net income of approximately $5,069,000 as of September 30, 2025[164] - A 1% change in interest rates could result in an approximate $159,000 change in net loss based on cash balances as of September 30, 2025[162] Financial Reporting and Compliance - The company’s financial statements are prepared in accordance with IFRS, and the Board of Directors approved the interim financial statements on November 12, 2025[11] - The company changed its presentation currency from Canadian dollars (CAD) to United States dollars (USD) effective April 1, 2025, to better reflect its operational exposure in the global cryptocurrency market[24] - The company adopted SAB 122 during the nine months ended September 30, 2025, resulting in the retrospective de-recognition of $3,356,235 of client digital assets and associated liabilities from its December 31, 2024 statement of financial position[23]

Core Insights - DeFi Technologies Inc. will hold a shareholder call on November 14, 2025, to discuss its Q3 2025 financial performance [1][2] - The company is positioned as a financial technology firm bridging traditional capital markets and decentralized finance [3] Company Overview - DeFi Technologies is the first Nasdaq-listed digital asset manager, providing equity investors with diversified exposure to the decentralized economy through an integrated business model [3] - The company's subsidiaries include Valour, Stillman Digital, Reflexivity Research, Neuronomics, and DeFi Alpha, each focusing on different aspects of digital assets and finance [3][4][5] Subsidiary Highlights - Valour issues exchange-traded products (ETPs) that allow investors to access digital assets securely through traditional bank accounts [4] - Stillman Digital is a liquidity provider offering trade execution and settlement solutions for digital assets [5] - Reflexivity Research specializes in high-quality research reports for the bitcoin and digital asset industry [5]

Core Insights - DeFi Technologies Inc. successfully executed an arbitrage trade through its trading desk, DeFi Alpha, generating a return of approximately $3.2 million, expected to be realized over three years if the SOL token price remains stable at around $167 per token [1][2][6] - The total trades executed by DeFi Alpha in 2025 have reached $27 million, indicating strong trading activity [1][6] - The gains from this trade will be reflected in the Company's Q4 2025 financial statements, enhancing its financial position [2][6] Trading Desk Performance - DeFi Alpha has demonstrated its ability to capitalize on market inefficiencies, reinforcing confidence in its capability to generate non-correlated returns across various market conditions [3][6] - The desk employs a disciplined execution framework and risk management strategies to identify and execute low-risk arbitrage opportunities with minimal market exposure [3][4] Market Dynamics - The market for Digital Asset Treasuries (DATs) has seen a shift, with a moderation in investor demand leading to the reemergence of market inefficiencies, which DeFi Alpha aims to exploit [3][6] - The Company is actively evaluating additional arbitrage opportunities as market volatility increases, supported by its diversified digital asset product suite [4][6] Business Model and Strategy - DeFi Technologies operates as a financial technology company bridging traditional capital markets and decentralized finance, offering a range of products including Valour ETPs, Stillman Digital, and Reflexivity Research [5] - The Company is focused on building an institutional gateway to the future of finance, leveraging its expertise in capital markets and emerging technologies [5]

Core Viewpoint - DeFi Technologies Inc. announces that its subsidiary, Stillman Digital, has partnered with GoDark to enhance institutional execution capabilities in the digital asset space, focusing on off-exchange block liquidity and low latency matching [1][5]. Group 1: Partnership and Platform Features - Stillman Digital joins GoDark, an institutional dark pool for digital assets, which is designed to execute large, price-sensitive orders discreetly while maintaining execution quality [1][2]. - GoDark offers features such as ultra-low latency matching, non-custodial settlement, and institutional-grade execution protections, including minimum fill sizes and best price checks [2][7]. Group 2: Institutional Benefits - The partnership strengthens Stillman Digital's role as an institutional execution partner by combining discreet block liquidity with low latency matching and non-custodial settlement [5]. - Access to off-exchange liquidity through GoDark reduces signaling risk and enhances aggregate execution quality for large orders, benefiting institutions [5][3]. Group 3: Company Overview - DeFi Technologies Inc. is a financial technology company that bridges traditional capital markets and decentralized finance, offering diversified exposure to the decentralized economy through various subsidiaries [6]. - Stillman Digital focuses on providing institutional-grade execution and custody solutions, enhancing the overall service offering within the DeFi Technologies ecosystem [6][9].

Core Insights - DeFi Technologies' subsidiary Valour has successfully listed its 100th exchange-traded product (ETP), the Valour Sky (SKY) SEK ETP, on Sweden's Spotlight Stock Market, solidifying its position as the largest issuer of digital asset ETPs globally [1][3][7] Group 1: Company Achievements - Valour has achieved its year-end goal of listing 100 ETPs, which includes a diverse range of products across major European exchanges such as Börse Frankfurt, SIX Swiss Exchange, and London Stock Exchange [4][7] - The listing of SKY marks a significant milestone for Valour, emphasizing its commitment to providing regulated access to digital assets and meeting local demand for transparent crypto exposure [5][6] Group 2: Product Overview - The Valour Sky (SKY) is a governance token for the Sky ecosystem, which is a successor to MakerDAO, allowing holders to participate in protocol governance related to stablecoin and collateralized lending [2][7] - The ETP provides investors with regulated access to a blue-chip DeFi governance asset, enhancing the appeal of digital assets within traditional investment frameworks [7] Group 3: Leadership Commentary - Elaine Buehler, Head of Products at Valour, highlighted that the launch of SKY reflects the evolving landscape of finance, making DeFi accessible to a broader audience [5] - Olivier Roussy Newton, CEO of DeFi Technologies, stated that reaching the 100 ETP target validates the company's product strategy and commitment to delivering regulated access to digital assets at scale [6]

Core Insights - DeFi Technologies Inc. is participating in the 2025 Maxim Growth Summit, scheduled for October 22-23 at The Hard Rock Hotel NYC, focusing on trends in decentralized finance and traditional capital markets [1][2]. Company Overview - DeFi Technologies is a financial technology company that connects traditional capital markets with decentralized finance (DeFi), being the first Nasdaq-listed digital asset manager [7][8]. - The company offers diversified exposure to the decentralized economy through various subsidiaries, including Valour, Stillman Digital, Reflexivity Research, Neuronomics, and DeFi Alpha [7][8]. Event Participation - The 2025 Maxim Growth Summit will feature keynote speakers such as Larry Kudlow and Christopher Ruddy, along with roundtable discussions covering sectors like biotechnology, artificial intelligence, and energy [2]. - DeFi Technologies will engage in one-on-one meetings with institutional investors and analysts during the summit [1]. Upcoming Conferences - DeFi Technologies has a schedule of upcoming conferences, including: - Cantor Crypto, AI/Energy Infrastructure Conference on November 10-12 in Miami - Benchmark 14th Annual Discovery One-on-One Investor Conference on December 4 in NYC - Northland Virtual Growth Conference on December 16 [6].

Core Insights - DeFi Technologies Inc. reported that its subsidiary Valour Inc. achieved assets under management (AUM) of $987 million as of September 30, 2025, marking a 1.3% month-over-month increase driven by rising digital asset prices and net inflows into Valour's exchange-traded products (ETPs) [1][5] Group 1: Financial Performance - Valour recorded net inflows of $23.6 million in September 2025, the second-highest monthly total of the year, contributing to year-to-date total net inflows of $115.3 million, indicating strong investor demand for Valour's ETPs [2][5] - For the first time, Valour's AUM exceeded $900 million in each month of the quarter, ending at $947 million in July, $974 million in August, and $987 million in September [5] Group 2: Product Offerings - Key products driving inflows included established and newer ETP listings such as BTC, SUI, and DOGE, showcasing Valour's leadership in providing access to diverse digital assets [3] - Valour's top ETPs by AUM included VALOUR SOL at $309.98 million, VALOUR BTC at $288.17 million, and VALOUR ETH at $88.33 million, among others [7] Group 3: Strategic Developments - Valour continues to expand its global presence with 99 ETPs listed across exchanges in Europe and the UK, with plans for upcoming launches of leveraged and warrant-based structures [4][8] - DeFi Technologies announced a $100 million registered direct offering to expand Valour's ETP lineup and pursue digital-asset trading, lending, and staking transactions [10] - The company invested in Continental Stablecoin Inc. to promote regulated local-currency stablecoins across Africa, focusing initially on Nigeria's cNGN [16] Group 4: New Product Launches - Valour launched the world's first physically backed Bitcoin Staking ETP on the London Stock Exchange, offering regulated exposure with a 1.4% annual staking yield [15] - Thirteen new SEK-denominated ETPs were launched on Sweden's Spotlight Stock Market, bringing Valour's total to 99 listed ETPs, reinforcing its position as a leader in digital asset ETPs globally [13][14]

Accessibility StatementSkip Navigation Nasdaq: DEFT | CBOE CA: DEFI | GR: R9B This press release contains "forward-looking information" within the meaning of applicable Canadian and U.S. securities legislation. Forward-looking information includes, but is not limited to the use of proceeds of the Offering. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company, as the ...