Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against DeFi Technologies Inc. due to allegations of violations of federal securities laws, particularly concerning misleading statements and undisclosed operational challenges that have negatively impacted the company's financial performance [4][6]. Group 1: Company Performance and Financials - DeFi Technologies reported a revenue decline of nearly 20% for Q3 2025, falling short of market expectations, and significantly lowered its 2025 revenue forecast from $218.6 million to approximately $116.6 million [8]. - The company attributed the revenue reduction to delays in executing its DeFi Alpha arbitrage strategy, which was impacted by increased competition from other digital asset trading (DAT) companies [8]. - Following the negative financial disclosures, DeFi Technologies' stock price fell by $0.40 per share, or 27.59%, closing at $1.05 per share on November 17, 2025 [9]. Group 2: Legal and Regulatory Issues - The complaint against DeFi Technologies alleges that the company and its executives made false and misleading statements regarding their operational capabilities and the competitive landscape, which misled investors [6]. - The deadline for investors to seek the role of lead plaintiff in the federal securities class action against DeFi Technologies is January 30, 2026 [4]. - Faruqi & Faruqi encourages anyone with information regarding DeFi Technologies' conduct to come forward, including whistleblowers and former employees [11].

Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against DeFi Technologies Inc. due to allegations of violations of federal securities laws, particularly concerning misleading statements and undisclosed operational challenges that have negatively impacted the company's financial performance [2][4]. Group 1: Company Overview - DeFi Technologies Inc. is publicly traded on NASDAQ under the ticker DEFT and has faced significant operational challenges that have led to a substantial decline in revenue forecasts for 2025 [2][6]. - The company reported a revenue decline of nearly 20% in Q3 2025, falling short of market expectations, and revised its revenue forecast from $218.6 million to approximately $116.6 million [6]. Group 2: Allegations and Legal Actions - The complaint against DeFi Technologies alleges that the company and its executives made false and misleading statements regarding their DeFi arbitrage strategy and the competitive landscape, which were critical to their revenue generation [4]. - The company faced delays in executing its DeFi arbitrage strategy and underestimated competition from other digital asset trading (DAT) companies, which adversely affected its business operations [4]. - Investors who purchased securities in DeFi Technologies between May 12, 2025, and November 14, 2025, are encouraged to discuss their legal rights and options with Faruqi & Faruqi, with a deadline of January 30, 2026, to seek the role of lead plaintiff in the class action [2][8]. Group 3: Stock Performance - Following the announcement of operational challenges and a significant revenue decline, DeFi Technologies' stock price fell by $0.40 per share, or 27.59%, closing at $1.05 per share on November 17, 2025 [7]. - Prior to this, on November 6, 2025, the stock had already dropped by $0.13 per share, or 7.43%, after a press release indicated delays in arbitrage opportunities [5].

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]