DeFi Technologies Inc. Announces Q1 2025 Financial Results: Revenues of C$62.7 million (US$43.1 million), EBITDA of $44.8 million (US$31.2 million) and Net Income of C$43 million (US$30 million), and Notable Strategic Developments
DeFi Technologies Inc. Announces Q1 2025 Financial Results: Revenues of C$62.7 million (US$43.1 million), EBITDA of $44.8 million (US$31.2 million) and Net Income of C$43 million (US$30 million), and Notable Strategic Developments |
| [14-May-2025] |
TORONTO, May 14, 2025 /PRNewswire/ - 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"), announces its financial performance for the three months ended March 31, 2025.
Financial Highlights
Cash and Treasury Position
Total Value of cash, digital asset treasury, and Venture Portfolio: C$117.3 million (US$81.5 million) as of March 31, 2025. For the latest update on cash and digital asset treasury holdings as of April 30, 2025, see here. AUM & Net Inflows
Q1 Strategic and Business Developments
Comment from the CEO, Olivier Roussy Newton: "2024 was a breakout year for DeFi Technologies—one in which we established ourselves as one of the most profitable and operationally disciplined public companies in the digital asset sector. We have carried that momentum into 2025 and just reported Q1 financials that reflect both strength and resilience in the face of market volatility:
These results are more than numbers—they represent the scalability of our business model, the discipline of our execution, and our ability to generate substantial profit margins even in turbulent market conditions. But perhaps most significantly, on May 12, 2025, DeFi Technologies officially began trading on Nasdaq—a milestone that marks the next chapter in our journey. Being listed on one of the world's most prestigious stock exchanges expands our visibility, enhances our credibility with institutional investors, and unlocks new avenues for growth. It is a powerful validation of the company we've built and a signal to the broader capital markets: DeFi Technologies is here to lead. We are already seeing that leadership take shape. In Q1, we were added to multiple leading indices and ETFs, including the MSCI Canada Small Cap Index, MVIS Global Digital Assets Equity Index, and the VanEck Digital Transformation ETF (DAPP)—joining a peer group that includes Coinbase, MicroStrategy, and Galaxy Digital. Operationally, our asset management arm, Valour, reported C$921 million (US$640 million) in AUM as of March 31, 2025, with net inflows of C$72.4 million (US$50.4 million) during the quarter, even as digital asset markets pulled back from January highs. We continue to expand our product suite and work on global distribution, with a roadmap to reach 100 listed products by year-end. Our institutional trading arm, Stillman Digital, generated C$2.9 million (US$2.1 million) in Q1 revenue and is scaling rapidly through new client acquisitions, expanded product offerings, and high-impact hires, including a new Head of Trading from B2C2. Meanwhile, DeFi Alpha, our proprietary trading strategy, has maintained an unblemished track record. It delivered C$132.1 million (US$96.7 million) in gains in 2024 with zero losses to date and announced a C$30.3 million (US$22 million) trade based on the market price at the time of execution on May 5, 2025, which will be reflected in our Q2 results. We are also investing in the future. In March 2025, we acquired a 52.5% majority stake in Neuronomics AG, a Swiss AI asset management firm that combines artificial intelligence with computational neuroscience to drive alpha in volatile markets. We are actively working to integrate Neuronomics into our broader business, and we believe its proprietary models and technology will play a central role in our long-term strategy. Beyond our core businesses, we are executing on an ambitious global expansion strategy—with active developments in Africa, Asia-Pacific, and the Middle East. In April, we announced the launch of the Kenya Digital Exchange (KDX) in partnership with the Nairobi Securities Exchange and SovFi, a fully regulated platform for tokenizing real-world assets. We believe initiatives like KDX will position us as a first mover in key emerging markets. Based on our performance and market trends, we are projecting full-year 2025 revenue of approximately C$285.6 million (US$201.07 million)—a meaningful increase from our 2024 results and a clear signal of our accelerating growth trajectory. Our path forward is clear. We are building a resilient, diversified financial technology company that brings institutional-grade infrastructure to the digital asset economy. We're operating with zero debt, a strong balance sheet, and a portfolio of high-performing, high-conviction businesses. The Nasdaq listing is not a culmination—it's a launchpad. It amplifies our mission to bridge traditional and decentralized finance and positions us to scale further across products, geographies, and market segments." Outlook for 2025 The outlook for each business segment of the Company that follows supersedes all prior financial outlook statements made by the Company, constitutes forward-looking information within the meaning of applicable securities laws, and is based on a number of assumptions and subject to a number of risks. Actual results could vary materially as a result of numerous factors, including certain risk factors, many of which are beyond the Company's control. Please see "Cautionary note regarding forward-looking information" and "Financial Outlook Assumptions" below for more information. Asset Management Outlook for 2025 The Company has experienced substantial revenue growth over the past twelve months, driven by increased investor activity and broader market momentum. Valour's ETPs have seen more than a 900% increase in AUM since the market lows of late 2022, with continued growth in trading volumes. As of March 31, 2025, Valour's ETP business reported approximately C$921 million (US$641 million) in AUM.This growth has been supported by favorable market conditions, the launch of new ETPs, and strategic corporate initiatives that have boosted both trading activity and overall financial performance. Revenue from staking and lending, management fees, and mark-to-market changes in digital assets and ETP payables has remained closely correlated with both the level of capital inflow into Valour's products and the performance of the underlying digital assets, which continued to appreciate into 2025. Additionally, Valour continues to seek and optimize revenue-generating opportunities of its digital asset holdings. Based on current performance, digital asset price levels and market trends, the Company's annualized revenue for 2025 is forecasted at approximately C$285.6 million (US$201.07 million). Continued growth in AUM may lead to proportional increases in revenue going forward. Valour's Global Expansion and Strategic Market Development Valour is making significant strides in expanding its global footprint, solidifying its position as a leader in the regulated digital asset space. With over 60 ETPs now listed across European and UK exchanges, Valour plans to increase its total ETP listings to 100 by the end of 2025. This expansion includes a diverse pipeline of new products such as leveraged and warrant ETPs, as well as innovative single-asset and thematic baskets. Upcoming offerings include Valour Tron (TRX) and Stellar (XLM) ETPs, along with MANTRA (OM) and Move (MOVE) ETPs in both SEK and EUR denominations. The company is also developing thematic baskets such as a Real-World Asset (RWA) & Tokenization Basket, a Digital Gold Basket combining BTC, PAXG, and XAUt, and an Institutional Layer-1 Basket featuring Avalanche, Algorand, Hedera, Polkadot, Sei, and BUIDL. Additionally, Valour will soon launch leveraged 2x Bitcoin and Ethereum ETPs, designed for high-conviction and tactical strategies. This continued product innovation underscores Valour's leadership in the European ETP market and its commitment to meeting growing investor demand for secure, regulated, and diversified exposure to digital assets. As Valour continues to diversify and broaden its reach, the Company is also strategically entering new markets outside of Europe. This expansion into regions such as Africa, Asia, the Middle East, and other emerging areas offers Valour a first-mover advantage. This proactive market approach is a critical differentiator, allowing Valour to be at the forefront of digital asset adoption in key regions with significant growth potential. Strategic Partnerships in Africa and Asia-Pacific Valour's global expansion has been significantly accelerated by recent partnerships in Africa and Asia-Pacific, positioning the company as a leader in emerging markets. These strategic collaborations in regions with rapidly growing digital asset adoption will provide a solid foundation for future growth.
Market Expansion Strategy DeFi Technologies and Valour are employing a comprehensive strategy to expand market share in both established and emerging regions. This approach revolves around four core pillars: Digital Strategy, Customer Management, Institutional Engagement, and Relationship Building. These pillars ensure that Valour is not only expanding its market presence but also deepening its institutional relationships and regulatory engagements. When evaluating new jurisdictions for expansion, Valour's decision-making matrix requires regions to meet at least three of the following criteria:
Regulatory Strategy and Education Valour's expansion is also underpinned by a commitment to regulatory clarity. Valour's approach is built on the principle of being "regulated crypto without the keys and the wallets," positioning its ETPs as safe, compliant, and transparent solutions. As part of its ongoing strategy, Valour is focused on:
Strategic Considerations for Growth Valour's strategy includes critical elements such as cross-listing, market-making, foreign exchange considerations, in-country marketing, and forming key partnerships with local institutional players. By leveraging these strategies, Valour is addressing the challenges of entering new markets, such as navigating regulatory frameworks, liquidity requirements, and cultural sensitivities. Valour is also forging the path forward in markets where digital asset regulation is either nascent or absent, positioning itself as a trailblazer. Despite the challenges, Valour remains optimistic about the regulatory environment's evolution. The Company is making steady progress in expanding its market presence with expected listings in the coming months and a robust pipeline of additional listings anticipated through the rest of 2025 and into 2026. Strategic locations yet to be announced will also play a key role in Valour's expansion and its mission to bridge the gap between traditional securities and digital assets. Accelerating Investor Demand From January to October 2024, Valour saw total inflows of C$101.3M (US$70.5M), demonstrating strong investor interest. However, inflows have since surged from November 2024 to March 2025, with inflows surpassing the total for the previous months at C$149.7 million (US$104.1 million). This uptick in inflows highlights accelerating investor demand for Valour's ETPs, underscoring the company's ability to attract capital and expand its presence in the market. Valour's international expansion is not just about growing its product lineup—it's about establishing a strong competitive moat, taking a leadership position in new markets, and positioning the company to capitalize on the global shift toward regulated digital assets. The company's ongoing efforts are laying the foundation for continued success and increased market dominance in the years ahead. Stillman Digital Outlook for 2025 As we progress through 2025, Stillman Digital is positioned to build on the strong momentum achieved since its acquisition by DeFi Technologies in Q4 2024. Stillman Digital has delivered strong performance since joining the DeFi Technologies portfolio, generating C$5.8M (US$4.15M) in revenue since the acquisition. Stillman Digital's strategic priorities for the year will focus on expanding business development efforts, enhancing global reach, and deepening capabilities in key areas such as foreign exchange and stablecoin services. The company is also actively investing in its team and technology to enhance trading capabilities, including key strategic hires such as several backend developers and a new Head of Trading, Gary Pike. Mr. Pike previously served as Head of Trading for the Americas at B2C2, overseeing up to $5 billion in daily crypto volume at its peak. Stillman is also focused on building out its distribution infrastructure through initiatives like Finery, Hidden Road Partners, and the Circle Alliance Program. Importantly, the Company is experiencing consistent month-over-month growth in the number of active customers, reflecting increasing market demand and engagement. Financial Outlook:
Strategic Focus:
Looking ahead, Stillman Digital is well-positioned to accelerate its growth in 2025, leveraging DeFi Technologies' support and strategic resources to unlock new opportunities and continue expanding its global footprint. DeFi Alpha Outlook for 2025 The DeFi Alpha strategy has proven to be a pivotal driver of DeFi Technologies' financial resilience, enhancing the Company's position in an ever-evolving digital asset landscape. Through its arbitrage-focused approach, DeFi Alpha has strengthened the Company's financial foundation, enabling debt repayment while supporting the deployment of a robust digital asset treasury strategy. This strategic model has proven effective in mitigating risks while maximizing returns, even in the face of market volatility. Performance Update: For the twelve months ending December 31, 2024, DeFi Alpha generated C$132.1 million (US$96.7 million) in returns, maintaining an impressive track record with zero losses to date. While no one-off, large-scale trades were executed in Q1 2025, the Company announced a significant trade on May 5, 2025, totaling C$30.3 million (US$22 million), based on the market price at the time of execution. This trade—executed during a period of heightened volatility—demonstrates DeFi Alpha's ability to deploy capital opportunistically and at scale, leveraging its unique balance sheet position and market access. The trade will be reflected in DeFi Alpha's Q2 2025 financial statements. The strategy's performance to date underscores its consistent ability to generate alpha in dynamic market conditions, while preserving capital and maintaining a disciplined risk profile. Strategic Focus and Competitive Edge: DeFi Alpha was designed to capitalize on the Company's balance sheet through both systematic and opportunistic trading strategies. The approach uniquely positions DeFi Alpha to take advantage of market opportunities while leveraging its balance sheet advantages. Many of the trades pursued are exclusive, backed by strong partnerships and significant holdings tied to ETPs, making these opportunities largely inaccessible to other firms. This exclusivity, combined with efficient execution in low-competition areas, is what gives DeFi Alpha its strategic edge in the market. Systematic Earnings and Opportunistic Trades:
Ecosystem and Market Growth: With the continued mainstream adoption of crypto and the broader ecosystem expansion, DeFi Alpha has seen an increase in market opportunities. Even with an expanded team, there are more opportunities than can be fully addressed, providing a clear path for continued growth. Product Launches and AUM Expansion: The launch of new products, alongside a growing AUM, will further enhance DeFi Alpha's ability to scale its systematic trading activities, driving revenue growth in 2025. The increase in liquidity from these initiatives will provide greater operational efficiency and open up trades that competitors are unable to execute, expanding DeFi Alpha's competitive moat. Long-Term Infrastructure Development: Investments in infrastructure, counterparty agreements, and research since Q2 2024 are laying the groundwork for sustained growth, with the full benefits expected to be realized as the year progresses. These long-term investments are crucial to building a foundation that will continue to support DeFi Alpha's growth trajectory and its ability to capture future opportunities. Outlook for 2025 and Beyond: Looking ahead, DeFi Alpha is poised to capitalize on its unique positioning, leveraging both systematic and exclusive trading opportunities, along with strong partnerships and continued market growth. At the same time, the ongoing infrastructure investments will ensure a solid foundation for long-term success, with sustained growth and continued strategic advancements as key focuses for 2025. DeFi Alpha remains well-positioned to be a major contributor to DeFi Technologies' continued success, driving both short-term gains and long-term value for the Company. Neuronomics Outlook On March 7, 2025, DeFi Technologies finalized the acquisition of a majority stake (52.5%) in Neuronomics AG, a Swiss asset management firm specializing in artificial intelligence and computational neuroscience. Neuronomics is committed to driving sustainable growth through strategic innovation, global market expansion, and rigorous operational excellence. Building on our core strengths in artificial intelligence and computational neuroscience, our 2025 roadmap integrates new partnerships, diversified product launches, and a best-in-class compliance framework. These initiatives firmly position Neuronomics at the forefront of next-generation algorithmic asset management. Strategic Growth Initiatives:
Innovation and Product Pipeline
Operational Excellence and Risk Management
Future Outlook
Earnings Conference Call The DeFi Technologies Q1 2025 Financial Results webcast will commence at 12:00 p.m. ET, Wednesday, May 14, 2025. To register for the live webcast, please visit this link: https://zoom.us/webinar/register/WN_nvCladwFTt2ChW2Yswg0gQ Link to Q1 2025 presentation: https://drive.google.com/file/d/1puITV5hlBPa6Eh-yhfs7-pChb4GgvVUH/view?usp=sharing Supplemental Materials and Upcoming Communications The Company has made available on its website materials designed to accompany the discussion of its results, along with certain supplemental financial information and other data. For important news and information regarding the Company, including investor presentations and the timing of future investor conferences, visit the Investor Relations section of the Company's website: https://defi.tech/investor-relations. Analyst Coverage of DeFi Technologies A full list of DeFi Technologies analyst coverage can be found here: https://defi.tech/investor-relations#research. For inquiries from institutional investors, funds, or family offices, please contact: ir@defi.tech Upcoming Conferences & Events 25th Annual B. Riley Securities Annual Investor Conference 2025 Virtual Tech Conference: Discover the Innovations About DeFi Technologies DeFi Technologies Subsidiaries About Valour About Stillman Digital About Reflexivity Research About Neuronomics AG Cautionary note regarding forward-looking information: Financial Outlook Assumptions The financial outlook on revenue of the Company is based on a number of assumptions, including assumptions related to the application of IFRS to the Company's financial statements; fluctuations in DLOM and its effect on the Company's equity investments; inflation, changes in interest rates, volatility of the digital asset market, current and projected market prices of digital assets, in particular the digital assets underlying the Company's ETPs, the Company's ability to realize staking and lending income from digital assets held by the Company, the ability of DeFi Alpha to generate yield on the Company's excess liquidity and identify and execute accretive trading opportunities, the return realized by the Company on staking and lending income, the return on management fees earned by the Company, business model of Reflexivity Research, trading volumes of Stillman Digital, successful implementation of technological upgrades at Stillman Digital, successful launch of products by Neuronomics AG, consumer interest in the Valour's ETPs, foreign exchange rates and other macroeconomic conditions, the regulatory environment with respect to ETPs and digital assets in the jurisdictions that the Company operates in, introduction of future ETPs, "black swan events" in the digital asset industry, competitors that offer competing ETP products and market acceptance of the Company's ETP offerings. The Company's financial outlook, including the various underlying assumptions, constitutes forward-looking information and should be read in conjunction with the cautionary statement on forward-looking information above. Many factors may cause the Company's actual results, level of activity, performance or achievements to differ materially from those expressed or implied by such forward-looking information, including the risks and uncertainties related to: macroeconomic factors affecting the digital asset industry, including inflation, changes in interest rates, investor confidence in digital assets; volatility of the digital assets and fluctuation in market value of digital assets; exchange rate fluctuations; any pandemic; fraud, misconduct or gross negligence by individuals within the digital asset industry; a negative regulatory environment with respect to digital assets; the Russian invasion of Ukraine and reactions thereto; the Israel-Hamas war and reactions thereto; the Company's inability to attract purchasers of its ETPs; decrease in AUM as a result of investor selling the Company's ETPs or a fall in the value of the underlying digital assets; Valour's inability to launch attractive ETPs; the Valour's inability to increase ETP sales; the Company's inability to implement our growth strategy; the Company's reliance on a small number of custodian and market participants to operate its ETP programs; decrease in the number of subscribers to Reflexivity Research; decrease in the number of trades or fees generated by Stillman Digital; the Company's ability to prevent and manage information security breaches or other cyber-security threats; the Company's ability to compete against competitors; strategic relations with third parties; changes to technologies on which ETPs are purchased and sold is reliant; Valour's ability to distribute ETPs in jurisdictions it is not currently operating in; the Company's ability to obtain, maintain and protect our intellectual property; the Company's ability to execute on its acquisition strategy; the Company's liquidity and capital resources; pending and threatened litigation and regulatory compliance; changes in tax laws and their application; the Company's ability to expand its sales, marketing and support capability and capacity; and maintaining our customer service levels and reputation. The purpose of the forward-looking information is to provide the reader with a description of management's expectations regarding our financial performance and may not be appropriate for other purposes. THE CBOE CANADA EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE
SOURCE DeFi Technologies Inc. | ||
Company Codes: NEO:DEFI, Frankfurt:R9B, NASDAQ-NMS:DEFT |
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