Core Insights - DeFi Technologies Inc. announces that its venture portfolio company, Canada Stablecorp Inc., has achieved a significant milestone with QCAD being approved as Canada's first compliant CAD stablecoin [1][2][3] Company Overview - DeFi Technologies is a financial technology company that bridges traditional capital markets and decentralized finance (DeFi) [4] - The company aims to support the growth of QCAD as a core Canadian-dollar rail across its product and trading platform [3] Regulatory Milestone - QCAD Digital Trust has received final approval for the prospectus qualifying the distribution of QCAD tokens under Canada's regulatory framework for stablecoins, establishing a benchmark for compliant digital money [2][3] Strategic Partnership - DeFi Technologies and Stablecorp plan to scale QCAD in three core areas, focusing on creating a more open and efficient financial system for Canadians [3] - The partnership aims to position QCAD as a key component in unlocking Canada's digital potential [3] Business Development - QCAD provides a foundation for DeFi Technologies' growth, with opportunities to launch CAD-linked exchange-traded products (ETPs) and structured products [5] - The company intends to deepen institutional on- and off-ramp flows and create new revenue streams aligned with Canada's evolving regulatory framework [5] Product Development - DeFi Technologies plans to develop QCAD-integrated products, including CAD-linked ETPs and yield products, to provide regulated access to the digital asset economy [5] - The company is positioned as a preferred liquidity provider for QCAD, supporting institutional-grade execution and cross-border payments [5] Security Initiatives - In collaboration with BTQ Technologies Corp., DeFi Technologies aims to develop a post-quantum security roadmap for QCAD as its importance scales over time [5]

Group 1 - Northland has lowered the price target for DeFi Technologies (DEFT) to $2.50 from $5, maintaining an Outperform rating on the shares [1] - The reduction in outlook is primarily driven by delays in DeFi Alpha, as indicated by the analyst [1]

Financial Data and Key Metrics Changes - As of September 30, 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] - Q3 effective staking and lending income yield was 3.1%, down from 3.6% in Q2, attributed to lower protocol rewards [3][4] - Q3 operating income was $9 million, with a net income after tax of $3.9 million for the quarter and $33.8 million for the nine months [7][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 to 1.2% from 1.1% in Q2 due to new management fee-bearing products [4] - Valour was highlighted as a major performance driver, achieving net inflows every month year-to-date, with $38.8 million of inflows during Q3 [10][11] Market Data and Key Metrics Changes - The company noted a bullish outlook for cryptocurrency prices, with Bitcoin holding around $100,000, and increasing institutional and retail participation expected to drive prices higher [7][10] - The company is optimistic about expanding its addressable market in Europe, particularly with increasing institutional participation [22][45] Company Strategy and Development Direction - The company plans to focus on maximizing AUM and monetization through new product launches and expanding into new capital pools [41][42] - The recent $100 million equity raise is intended to support growth initiatives, including increasing staking and facilitating ETP market making [8][9] - The company is actively seeking M&A opportunities to strengthen its infrastructure and long-term growth prospects [9][60] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the core revenue forecast of $116.6 million for 2025, contingent on a modest rally in cryptocurrency prices [5][6] - The transition in leadership with Johan Wattenstrom stepping in as CEO is expected to maintain the company's growth trajectory and operational focus [15][18] - Management acknowledged the challenges posed by the proliferation of digital asset treasury companies but remains optimistic about future opportunities [5][25] Other Important Information - The company has a venture portfolio consisting of 12 private investments, with Amina Bank being the largest, representing 83% of the portfolio's fair value [8] - The company repurchased nearly one million shares for $2.44 million during the quarter, indicating a commitment to returning value to shareholders [12] Q&A Session Summary Question: Do Alpha trades carry a liquidity or price liability? - Johan Wattenstrom explained that all market risk for core operations is hedged, with some profit retained in tokens, leading to potential fluctuations based on market conditions [35][36] Question: What key message do you want to give long-term shareholders? - Johan Wattenstrom emphasized the focus on maximizing AUM and monetization through new products and vehicles aimed at tapping into new capital pools [41][42] Question: Can you comment on the investment pipeline? - Johan Wattenstrom noted that the company is looking at various opportunities but remains selective, ensuring that any potential acquisition aligns with long-term strategic goals [59][60]

Financial Data and Key Metrics Changes - As of September 30, 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] - Q3 effective staking and lending income yield was 3.1%, down from 3.6% in Q2, attributed to lower protocol rewards [3][4] - Q3 operating income was $9 million, with a net income after tax of $3.9 million for the quarter and $33.8 million for the nine months [7][10] Business Line Data and Key Metrics Changes - The company staked approximately 58% of its AUM at the end of Q3, with a management fee yield of 1.2%, slightly up from 1.1% in Q2 due to new management fee-bearing products [4][3] - Valour was highlighted as a major driver of performance, achieving net inflows every month year-to-date, with $38.8 million of inflows during Q3 [10][11] - Stillman Digital generated $2.2 million in trading commissions in Q3, continuing to strengthen its position in institutional trading [11] Market Data and Key Metrics Changes - The company noted a bullish outlook for cryptocurrency prices, with Bitcoin holding around $100,000, and increasing institutional and retail participation expected to drive prices higher [7][10] - The company is optimistic about expanding its addressable market in Europe, particularly in France, where institutional participation is beginning to increase [22][45] Company Strategy and Development Direction - The company plans to focus on maximizing AUM and monetization through new product launches and expanding into new capital pools, including debt markets [41][42] - The recent $100 million equity financing will support increased staking and facilitate ETP market making on a larger AUM base [8][9] - The company is actively seeking creative M&A opportunities to strengthen its long-term growth prospects [9][60] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strong balance sheet and ability to capitalize on market opportunities, despite macroeconomic headwinds [10][14] - The incoming CEO, Johan Wattenstrom, emphasized the importance of maintaining a high focus on core strategies while exploring new geographic markets and product offerings [18][41] - Management acknowledged delays in DeFi Alpha opportunities but reiterated the strength and profitability of the underlying business [5][13] Other Important Information - The company repurchased nearly one million shares for $2.44 million during the quarter, indicating a commitment to returning value to shareholders [12] - The venture portfolio includes 12 private investments, with Amina Bank being the largest, representing 83% of the portfolio's fair value [8] Q&A Session Summary Question: Do Alpha trades carry a liquidity or price liability? - Johan Wattenstrom explained that all market risk for core operations is hedged, with some profit retained in tokens, which may fluctuate with market conditions [35][36] Question: What key message do you want to give long-term shareholders? - Johan Wattenstrom stated that the long-term core strategy remains unchanged, focusing on maximizing AUM and expanding into new product offerings [41] Question: Can you provide insight on the investment pipeline? - Johan Wattenstrom mentioned that the company is looking at various opportunities but remains selective, ensuring that any potential acquisition aligns with long-term strategic goals [59][60] Question: What is the outlook for geographic expansion? - Andrew Forson confirmed that the company is working on geographic expansion and has had success in securing new markets, although specific details cannot be disclosed until regulatory approval is obtained [27][28] Question: What is driving the revenue guidance for Q4? - Paul Bozoki clarified that the company expects to achieve $36 million in Q4, contingent on crypto price movements and operational performance [64][65]

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].