Crypto Pure Play to Uplist to NASDAQ
Research Report

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Disclosures for Compass Point Research, DeFi Technology Inc., May 11, 2025

Analyst Certification I, Ed Engel, hereby certify that the views expressed in this research report accurately reflect my personal views about the subject securities or issues. I further certify that I have not received direct or indirect compensation in exchange for expressing specific recommendations or views in this report. Coverage Universe Investment Banking Relationships Rating Number Percent Rating Number Percent Buy 71 63 Buy 29 41 Neutral 35 31 Neutral 10 29 Sell 7 6 Sell 1 14 Total 113 100% Total 40 100% *Percentage of Investment Banking Clients in Coverage Universe by Rating Rating and Price Target History for: DeFi Technologies Inc (DEFTF) as of 05-09-2025

Ownership and Material Conflicts of Interest Ratings, Coverage Groups, and Views and Related Definitions The information and rating included in this report represent the long-term view as described more fully below. The analyst may have different views regarding short-term trading strategies with respect to the stocks covered by the rating, options on such stocks, and/ or other securities or financial instruments issued by the subject company(ies). Our brokers and analysts may make recommendations to their clients that are contrary to the recommendations contained in this research report. Such recommendations or investment decisions are based on the particular investment strategies, risk tolerances, and other investment factors of that particular client or affiliate. From time to time, Compass Point and its respective directors, officers, employees, or members of their immediate families may have a long or short position in the securities or other financial instruments mentioned in this report. Stock Ratings System: Buy (B): We expect the stock to outperform its peers on a risk adjusted basis over the next 12 months. Neutral (N): We expect the stock to perform in line with its peers on a risk adjusted basis over the next 12 months. Sell (S): We expect the stock to underperform its peers on a risk adjusted basis over the next 12 months. Not Rated (NR): No rating at this time. Rating Suspended (RS): Compass Point Research has suspended the investment rating and price target for this stock, because there is not a sufficient fundamental basis for determining an investment rating or target. The previous investment rating and price Compass Point has suspended coverage of this company. Not Covered (NC): Compass Point does not cover this company. Not Available or Not Applicable (NA): The information is not available for display or is not applicable. Not Meaningful (NM): The information is not meaningful and is therefore excluded. Global Disclaimer The analyst(s) named in the certification above receives compensation based upon various factors, including, but not limited to, the quality and accuracy of research, client feedback, competitive factors, and overall firm revenues, which include revenues generated by Compass Point Research & Trading, LLC's investment banking activities. This report is based upon public information that Compass Point Research & Trading, LLC and the analyst named in the attestation above assume to be correct. Assumptions, opinions, forecasts, and estimates constitute the analyst’s judgment as of the date of this material and are subject to change without notice. The analyst’s judgments may be wrong. Neither Compass Point Research & Trading, LLC nor its affiliates, nor the analyst, are responsible for any errors, omissions, or results obtained from the use of this information. Past performance is not necessarily indicative of future results. The securities and/or financial instruments mentioned in this report, and the trading strategies related thereto, may not be suitable for all investors. You must consider your specific investment goals and objectives prior to transacting in any security or financial instrument. Consult with your financial advisor before making any transactions or investments. © Compass Point Research & Trading, LLC 2025. All rights reserved. Reproduction or quotation in whole or part without permission is forbidden.

DeFi Technologies Inc. (DEFT:NASDAQ; DEFI:CBOE; R9B:FSE) is to start trading on the NASDAQ under ticker symbol DEFT on May 12, reported Ed Engel, analyst at Compass Point Research & Trading, in a May 11 research note. The investment firm raised its price target on DeFi to reflect higher crypto prices.

"After trading OTC as DEFTF and as DEFI in Canada since 2020, we expect the U.S. uplisting to increase awareness for this pure-play crypto stock," Engel wrote.

DeFi is a fintech company affording traditional investors exposure to a diversified portfolio of digital assets in the decentralized finance and Web3 sector. It gets 6%-plus management and staking fees on exchange-traded products (ETP) assets under management (AUM). The firm's EBITDA margins are 75% and higher.

63% Implied Return

Compass Point's new price target on DeFi is US$6.50 per share, up from US$5, still conservative, Engel wrote. Thus, further improvement in crypto markets will mean additional upside to Compass Point's forecasts and price target.

At the time of his report, Engel reported that DeFi was trading at about US$3.98 per share, at 10x EBITDA and thus at a discount to its pure-play crypto peers, including Coinbase Global Inc. (COIN:NASDAQ) and Exodus Movement Inc. (EXOD:NYSE.American), trading at 20–25x EBITDA.

Compass Point's new target price implies a 63% return for investors. DeFi remains a Buy.

Also at the time of the analyst's report, the digital assets company had 327.1 million shares outstanding. Its market cap was US$1.3 billion. Its 52-week range was US$0.55–3.94 per share.

AUM Reflects Rising Prices

DeFi's NASDAQ listing coincides with a rebound in crypto prices, Engel noted. For instance, BTC (Bitcoin) and SOL (Solana) are up 11% and 20% month to date, respectively. As such, DeFi's AUM is increasing. Reportedly, it was US$715 million (US$715M) on April 30 and is up 20% so far in May.

"Based on current crypto prices, we estimate DeFi's total AUM is over US$875M, with 29% of it in BTC ETPs and 30% of it in SOL ETPs.

Meanwhile, ETP inflows between Jan. 1 and April 30 were positive each month and totaled US$59M. Of this amount, US$8M happened in April.

Signs of Recovery in Q2/25

Crypto markets appear to be starting to rebound. Despite their recent rally, crypto traders remain underleveraged, "which offers upside potential if traders lever up in a risk-on environment," Engel wrote.

Also of note, according to the analyst, BTC's underlying supply dynamics are improving as short-term holders return to profitability and long-term holders continue to HODL (hold on for dear life). Historically, when BTC nears new highs, Altcoin prices gain momentum. This is good for DeFi because about 70% of its AUM is in Altcoins.

Recent Arbitrage Trade

DeFi disclosed a US$22M trading profit on May 5, Engel reported. On trades like this made by the DeFi Alpha trading desk, Compass Point estimates a 75%-plus contribution margin. As for DeFi Alpha trading profits, corporate guidance for 2025 is about CA$120M; last year's revenue was CA$132M.

In late Q1/25, management discussed possible near-term arbitrage purchases of locked or staked tokens at significant discounts to spot prices, so Compass Point expects DeFi to announce further DeFi Alpha trading profits in Q2/25 and Q3/25.