DeFi Technologies Inc.'s (DEFT:NASDAQ; DEFI:CBOE; R9B:FSE) Q1/25 was "noisy, but outlook is good," reported Mike Grondahl, Northland Capital Markets analyst, in a May 15 research note.
"[The company] continues to deliver assets under management (AUM) growth, acquisitions, progress on international expansion efforts, new product launches, inclusion to prominent indices and institutional investment vehicles," Grondahl wrote.
32% Implied Return
Northland reiterated its CA$7 per share target price on the digital assets firm, trading at the time of Grondahl's report at CA$5.30 per share. From this price, the return to target is 32%.
DeFi is rated Outperform.
Financial Results Recap
The analyst reported that DeFi's Q1/25 revenue was CA$62.7 million (CA$62.7M), including a CA$45M DLOM (discount for lack of marketability) benefit. Revenue was in line with Northland's CA$42.8M. DLOM is an accounting approach that reduces the value of an asset that cannot be easily sold or traded, such as the tokens in crypto projects like the Solana (SOL) and Avalanche (AVAX) that DeFi owns. These are locked for a period of time, during which they cannot be sold. They can be sold once they are unlocked. When crypto prices go down, as they did in Q1/25, DeFi benefits from DLOM and vice versa.
DeFi's adjusted EBITDA in Q1/25 was CA$44.8M, more than double Northland's CA$17M estimate.
In Q1/25, DeFi's subsidiary Valour had AUM inflows of CA$72.4M and ended the quarter with total AUM of CA$921M.
"Geographic expansion of exchange-traded products (ETPs) continues to be a focus for driving AUM growth," wrote Grondahl.
Stillman Digital, the digital asset liquidity provider that DeFi acquired, generated CA$2.9M in trading commissions in Q1/25.
Also during the quarter, DeFi was added to the MSCI Canada Small Cap Index, the VanEck Digital Transformation Exchange Traded Fund, the MVIS Global Digital Assets Equity Index, Bitwise Asset Management, The Vanguard Group and Melanion Capital.
DeFi appointed to its board Chase Ergen, an expert in decentralized finance and emerging technologies.
It increased its stake in Neuronomics AG, asset management and fintech firm, to 52.5%, further bolstering its quantitative trading capabilities.
On the product side, DeFi's Valour launched four new ETPs on the Frankfurt Stock Exchange, broadening investor access to emerging blockchain ecosystems such as Dogecoin, Aptos, Sui and Render.
"[DeFi] continues to gain traction across both institutional and retail channels," Grondahl wrote.
Entering New Markets
Grondahl reported that DeFi continues its progress in expanding geographically. In Europe, the company aims to add another 40 ETPs by year-end 2025 to its current 60, to reach 100 in all. DeFi also is working on on launching its ETPs in Africa, Asia and the Middle East before moving into Canada and the U.S.
"Recall [DeFi] plans to launch 50 products in each region that could unlock an incremental US$3 billion (US$3B) AUM (3 markets x 50 products x US$20M AUM per product) and US$300M of revenue at current yields/fees," the analyst wrote.
As for Africa, DeFi expects to launch ETPs on the Nairobi Stock Exchange (NSE) by the end of Q3/25. Recently, the company partnered with the NSE to design and launch the Kenya Digital Exchange (KDX), a regulated platform for tokenizing real world assets and facilitating primary issuance, trading and liquidity options. The new exchange, of which DeFi will own 80%, will be deployed in phases until completion by Q2/26.
In Asia, DeFi is to be listed on AsiaNext's Singapore licensed exchange, as outlined in a signed memorandum of understanding with AsiaNext and SovFi. The timeline for this is unknown.
In the Middle East, DeFi applied to list its ETPs on the Dubai Financial Market and aims eventually to list on the Abu Dhabi, Riyadh and Qatar exchanges.
Post Q1/25 Activity
In April, Valour's AUM saw CA$10.8M in net inflows, reflecting a 30% month-over-month (MOM) increase. As of April 30, the division's total AUM was CA$988M, up 12% MOM. Its cash/USDT was CA$15.4M. Its treasury balance was CA$46.5M.
The latter consisted of CA$26.7M Bitcoin, CA$13.3M AVAX, CA$3M SOL, CA$1.6M Core, C$1.3M Cardano, CA$294,000 (CA$294K) Ethereum and CA$4K Uniswap.
Year-to-date AUM inflow was CA$81.1M. Loans payable remained the same at CA$8.6M.
On May 5, DeFi Alpha executed a CA$30.3M trade. DeFi's specialized arbitrage trading desk has generated CA$132.1M in revenue since its inception in Q2/24.
"Additionally, it sounds like there is a growing pipeline of opportunities for these kinds of transactions," wrote Grondahl.
On May 12, DeFi Technologies began trading on the NASDAQ. This, noted the analyst, validates its strategy, boosts credibility with institutional investors and opens additional growth avenues.
Outlook Favorable
DeFi's near-term product launches include Smart Crypto AI and TechEquity AI in Q3/25 and Crypto Alpha AI in Q4/25.
Grondahl purported that with higher digital asset prices in Q2/25, DeFi's results should be stronger. Its Q1/25 results were soft, as expected, due to the crypto selloff during the period.
The company raised its 2025 revenue guidance to CA$285.6M from CA$227.2M based on Q1/25 outperformance, higher digital asset prices, the recent DeFi Alpha trade and pipeline, and market trends. Stillman Digital expects 2025 revenue between CA$12M and CA$16M.
Northland revised its key financial estimates on DeFi for this year and next, noted Grondahl. New projections for 2025, all higher, are revenue US$223.8M, previously US$215.3M; EBITDA US$124.7M, previously US$102.5M; and earnings per share (EPS) US$0.30, previously US$0.25.
Northland's new 2026 estimates, all lower, are revenue US$226.9M, previously US$242.6M; EBITDA US$122.1M, previously US$130.6M; and EPS US$0.29, previously US$0.32.
More Stock Details
Grondahl reported that at the time of his report, DeFi had 327.1 million shares outstanding, a market cap of CA$1.7B and a 52-week range of CA$0.83–6.93 per share.
| Want to be the first to know about interesting Cryptocurrency / Blockchain investment ideas? Sign up to receive the FREE Streetwise Reports' newsletter. | Subscribe |
Important Disclosures:
- Doresa Banning wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor/employee.
- This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.
For additional disclosures, please click here.
Disclosures for Cantor Fitzgerald and DeFi Technologies Inc., May 22, 2025:
The opinions, estimates and projections contained in this report are those of Cantor Fitzgerald Canada Corporation. (“CFCC”) as of the date hereof and are subject to change without notice. Cantor makes every effort to ensure that the contents have been compiled or derived from sources believed to be reliable and that contain information and opinions that are accurate and complete; however, Cantor makes no representation or warranty, express or implied, in respect thereof, takes no responsibility for any errors and omissions which may be contained herein and accepts no liability whatsoever for any loss arising from any use of or reliance on this report or its contents.
Information may be available to Cantor that is not herein. This report is provided, for informational purposes only, to institutional investor clients of Cantor Fitzgerald Canada Corporation, and does not constitute an offer or solicitation to buy or sell any securities discussed herein in any jurisdiction where such offer or solicitation would be prohibited. This report is issued and approved for distribution in Canada, CFCC., a member of the Investment Industry Regulatory Organization of Canada ("IIROC"), the Toronto Stock Exchange, the TSX Venture Exchange and the CIPF. This report is has not been reviewed or approved by Cantor Fitzgerald & Co., a member of FINRA. This report is intended for distribution in the United States only to Major Institutional Investors (as such term is defined in SEC 15a-6 and Section 15 of the Securities Exchange Act of 1934, as amended) and is not intended for the use of any person or entity that is not a major institutional investor. Major Institutional Investors receiving this report should effect transactions in securities discussed in the report through Cantor Fitzgerald & Co.
Non US Broker Dealer 15a-6 disclosure: This report is being distributed by (CF Canada/CF Europe/CF Hong Kong) in the United States and is intended for distribution in the United States solely to “major U.S. institutional investors” (as such term is defined in Rule15a-6 of the U.S. Securities Exchange Act of 1934 and applicable interpretations relating thereto) and is not intended for the use of any person or entity that is not a major institutional investor. This material is intended solely for institutional investors and investors who Cantor reasonably believes are institutional investors. It is prohibited for distribution to non-institutional clients including retail clients, private clients and individual investors. Major Institutional Investors receiving this report should effect transactions in securities discussed in this report through Cantor Fitzgerald & Co. This report has been prepared in whole or in part by research analysts employed by non-US affiliates of Cantor Fitzgerald & Co that are not registered as broker-dealers in the United States.
These non-US research analysts are not registered as associated persons of Cantor Fitzgerald & Co. and are not licensed or qualified as research analysts with FINRA or any other US regulatory authority and, accordingly, may not be subject (among other things) to FINRA’s restrictions regarding communications by a research analyst with a subject company, public appearances by research analysts, and trading securities held by a research analyst account.
Potential conflicts of interest
The author of this report is compensated based in part on the overall revenues of Cantor, a portion of which are generated by investment banking activities. Cantor may have had, or seek to have, an investment banking relationship with companies mentioned in this report. Cantor and/or its officers, directors and employees may from time to time acquire, hold or sell securities mentioned herein as principal or agent. Although Cantor makes every effort possible to avoid conflicts of interest, readers should assume that a conflict might exist, and therefore not rely solely on this report when evaluating whether or not to buy or sell the securities of subject companies.
Disclosures as of May 22 , 2025
Cantor has not provided investment banking services or received investment banking related compensation from West Red Lake Gold Mines Ltd. within the past 12 months. The analysts responsible for this research report do not have, either directly or indirectly, a long or short position in the shares or options of West Red Lake Gold Mines Ltd. The analyst responsible for this report has visited the material operations of West Red Lake Gold Mines Ltd. No payment or reimbursement was received for related travel costs.
Analyst certification
The research analyst whose name appears on this report hereby certifies that the opinions and recommendations expressed herein accurately reflect his personal views about the securities, issuers or industries discussed herein.
Member-Canadian Investor Protection Fund.
Customers' accounts are protected by the Canadian Investor Protection Fund within specified limits. A brochure describing the nature and limits of coverage is available upon request.
