DeFi Technologies [DEFT] is a Toronto-headquartered cryptocurrency company that issues financial instruments that provide easy access to digital assets via traditional brokerages.
Other revenue streams of the company include arbitrage trading, market making, venture investments and crypto research. DeFi Technologies also has a crypto treasury with various tokens.
DEFT share price is down over 24% in 2025, hurt by earnings and revenue misses and crypto market volatility.
This stock spotlight will discuss the latest developments, earnings, market performance and bull/bear cases for DEFT stock.
Key Developments: Growing AUM, International Expansion and Stablecoin Plans
In early October, DeFi Technologies’ unit Valour, an issuer of crypto exchange-traded products (ETPs) reported assets under management (AUM) of $987m, marking total net inflows of over $115m in 2025.
In September, the company raised $100m through an equity offering at a price of $2.19 per common share from institutional investors, with Galaxy Digital [GLXY] as the lead investor.
Warrants, which are instruments that give the holder the right to purchase a company’s stock, included in the deal had an exercise price of $2.63 per share, about 28% higher than DEFT’s last trading price of $2.06, as of October 15.
The same month, DeFi Technologies announced strategic investments in two stablecoin companies — Canada Stablecorp and Nigeria’s Continental Stablecoin — to support the growth and adoption of stablecoins in Africa and Canada.
The deals marked the company’s third stablecoin-related initiative, following its joint venture with Fire Labs to develop a yield-bearing, US dollar-pegged stablecoin earlier in May.
DeFi Technologies also announced a collaboration with SovFi to create an instrument for the sovereign debt market that automatically converts bond coupons into Bitcoin investments.
In August, the company announced a year-long plan to buyback common shares using cash in hand.
July saw DeFi Technologies’ newly launched advisory business help Nuvve Holding [NVVE] set up a crypto treasury around the Hyperliquid [HYPE] token.
As a part of its international expansion, DeFi Technologies partnered with the Nairobi Securities Exchange in April to launch the Kenya Digital Exchange (KDX).
KDX is a tokenized asset trading platform that will list equities, debt, funds and commodities in their cryptocurrency forms. The upcoming exchange will operate under a shared ownership structure.
DEFT Share Price: Down Bad in 2025 on Earnings Miss
Over the past year, DEFT has largely traded flat, closing down 1.29% at $2.06 on October 15.
Note that, before May, shares of DeFi Technologies were trading on the OTC Market in the US. On May 12, the company’s shares started trading on the Nasdaq Stock Exchange.
In year-to-date terms, DEFT stock is down 24.26%.
In comparison, the VanEck Onchain Economy ETF [NODE], which tracks companies and instruments tied to the cryptocurrency industry, was up over 80% in the same time period.
Meanwhile, bitcoin [BTC] was up 18.67%.
DeFi Technologies is also listed on the Cboe Canada Stock Exchange as [DEFI:NE] and on the Frankfurt Stock Exchange as [R9B:F].
Key Fundamentals and Financial Health: DEFT’s Growth Fails to Impress Wall Street
DeFi Technologies has seen its full-year total revenues surge over 400% from CA$10.36m in 2023 to CA$55.21m in 2024, thanks to an increase in unrealized gains on its cryptocurrency holdings.
The company expects to report CA$285.6m in revenue in 2025.
The purchase of $238.09m worth of Solana [SOL] and Avalanche [AVAX] crypto tokens at a discount from a bankrupt company in 2024 added $132.47m in unrealized gains to the company’s full-year revenue.
DeFi Technologies also reported a sixfold increase in management fees earned from issued exchange-traded products to CA$8.83m in 2024. Meanwhile, staking and lending income earned from interest on loaned and deposited cryptocurrencies surged 905% year-over-year to CA$35.72m.
Notably, the company’s specialized arbitrage trading desk, DeFi Alpha, generated C$132.1m in trading gains, with zero losses in 2024.
Full-year net loss rose to CA$39.04m in 2024 from CA$20.07m in 2023.
In Q2 2025, the company reported an increase in adjusted revenues from $25.3m a year ago to $32.1m. Despite the increase, it failed to beat market expectations of $45.05m.
The company posted adjusted net income of $17.40m in Q2 compared to net loss of $6.1m a year ago.
The company had a $7.22m loan and interest payable with bankrupt crypto lender Genesis.
At the end of June 2025, the total value of DeFi Technologies’ crypto treasury holding was about $26m. It had $26.37m in cash and cash equivalents at the end of H1.
The company has made eight private venture investments to date which were valued at $43.4m at the end of H1.
Comparing DEFT, MSTR and COIN
Strategy (formerly MicroStrategy) [MSTR] is a bitcoin-focused treasury firm. Like DeFi Technologies, it buys and holds crypto assets, but while DeFi Technologies invests in multiple tokens, Strategy holds only bitcoin. The company is well-known for using leverage to expand its bitcoin holdings.
Coinbase [COIN] is the most popular cryptocurrency exchange in the US. As Coinbase lists cryptocurrencies on its platform it directly competes with DeFi Technologies’ synthetic crypto instruments.
Here is how their fundamentals compare:
| DEFT | MSTR | COIN |
Market Cap | $833.03m | $99.98bn | $95.60bn |
P/S Ratio | 4.90 | 193.50 | 14.72 |
Estimated Sales Growth (Current Fiscal Year) | 284.35% | -1.38% | 12.58% |
Estimated Sales Growth (Next Fiscal Year) | 39.51% | 2.64% | 14.29% |
Source: Yahoo Finance
DEFT Stock: The Investment Case
The Bull Case for DEFT: Strong Growth and Clearer Crypto Regulations
DeFi Technologies has been posting strong revenue growth over the past year supported by the growth of its ETP business, staking income and exceptional performance of its arbitrage desk.
The company’s ETP products allow investors easy and regulated access to cryptocurrencies and the $115m surge in Valour’s AUM in 2025 points to growing investor demand.
Supportive regulatory signals under pro-crypto US President Donald Trump could further strengthen the outlook. Clearer rules may help DeFi Technologies advance its stablecoin ambitions and attract more institutions to the market, especially those seeking exposure to cryptocurrencies without SEC-approved ETFs like bitcoin or ethereum. This shift could continue to benefit DeFi’s broad selection of regulated ETPs.
The Bear Case for DEFT: Crypto Volatility, Intense Competition and Hacks
As a cryptocurrency manager and treasury stock, DeFi Technologies is highly sensitive to the notoriously volatile crypto market.
Moreover, the company’s core product, ETPs, face intense competition from direct rivals, cryptocurrency exchanges and ETFs. In September, bitcoin and ethereum, two cryptocurrencies with Securities and Exchange Commission-approved ETFs, made up about 38% of Valour’s ETP AUM.
Lastly, DeFi Technologies is susceptible to cyber security breaches. The company uses third-party custodians to safeguard its assets. The ByBit crypto exchange recently lost $1.5bn in ethereum tokens to North Korean hackers.
Conclusion
DeFi Technologies wants to make crypto investing as easy as investing in the stock market. Like most crypto companies, DEFT’s outlook remains closely tied to the overall performance of the digital asset market.
Disclaimer Past performance is not a reliable indicator of future results.
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