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DeFi Technologies (TSE:DEFI)
NEO-L:DEFI

DeFi Technologies (DEFI) AI Stock Analysis

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DeFi Technologies

(NEO-L:DEFI)

Rating:52Neutral
Price Target:
DeFi Technologies exhibits strong revenue growth and strategic expansions, but faces challenges with profitability, negative cash flow, and valuation issues. Positive sentiment from the earnings call and strategic initiatives are encouraging, yet regulatory hurdles and market dependency remain key risks.
Positive Factors
Financial Performance
DeFi Technologies reversed 4Q24’s loss and delivered a profitable start to 2025 while continuing to grow its AUM, product lineup, and geographical reach.
Market Expansion
DeFi Technologies announced permission to list on the Nasdaq Capital Market, which should bolster trading liquidity and increase exposure.
Product Development
DeFi is advancing SolFi Technologies and CoreFi, which could add high-margin fees once regulators approve them.
Negative Factors
Corporate Governance
Management stiff-armed analyst questions for the third consecutive quarter, suggesting a preference for softballs over transparency.
Investment Risk
Investment risk levels associated with a DeFi Technologies investment are judged higher than most small cap companies primarily due to inherent volatility in crypto.

DeFi Technologies (DEFI) vs. iShares MSCI Canada ETF (EWC)

DeFi Technologies Business Overview & Revenue Model

Company DescriptionDeFi Technologies (DEFI) is a company operating in the decentralized finance (DeFi) sector, focusing on providing investors with access to the rapidly growing decentralized finance ecosystem. The company specializes in offering services and products that enable access to the financial applications built on blockchain technology, including investments and infrastructure services that support blockchain-based financial activities.
How the Company Makes MoneyDeFi Technologies generates revenue primarily through its investments in decentralized finance projects and technologies. The company invests in various DeFi protocols and projects, which may appreciate in value, thereby contributing to its earnings. Additionally, DeFi Technologies may earn income from management fees associated with its investment products and partnerships with other firms in the DeFi space. These partnerships can involve collaborative efforts to develop new DeFi solutions or to expand the reach and adoption of existing technologies. The company's ability to leverage its expertise and connections within the blockchain and DeFi sectors is a significant factor in its revenue generation.

DeFi Technologies Earnings Call Summary

Earnings Call Date:May 14, 2025
(Q4-2024)
|
% Change Since: 0.00%|
Next Earnings Date:Aug 18, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong financial performance with significant growth in revenue and assets under management. Strategic acquisitions and successful product launches indicate a positive outlook. However, regulatory challenges and reliance on market conditions pose potential risks.
Q4-2024 Updates
Positive Updates
Strong Financial Performance
DFI Technologies reported CAD204.3 million in adjusted net revenue for 2024, with an adjusted EBITDA of CAD116.1 million. Their AUM grew by 132% to CAD1.18 billion as of December 31, 2024.
Cash and Treasury Growth
The company reported $22.4 million in cash on hand, up from $6.8 million at the end of 2023, and total treasury holdings of CAD58.9 million.
Successful Product Launches and Market Expansion
Valour launched 20 new products in November, increasing product mix. The company plans to expand ETPs to 100 by year-end, including new leveraged and warrant products.
Strategic Acquisitions
Majority acquisition of Neuronomics, a leading Swiss AI and asset management firm, enhancing AI capabilities and market reach.
Positive Market Sentiment
The company has not experienced a net outflow month in over two years, with significant inflows continuing despite broader market outflows.
Negative Updates
Regulatory Challenges
Ongoing regulatory hurdles with the SEC for NASDAQ listing, with the process being described as lengthy and complex.
Delays in Large DeFi Alpha Trades
Expected large trades in Q1 were delayed, affecting the anticipated revenue contribution from DeFi Alpha.
Dependency on Market Volatility
The company acknowledges that their growth strategies depend on favorable market conditions and high volatility, which may not be sustainable long-term.
Company Guidance
During the DFI Technologies 2024 Financial Overview Call, the company provided a comprehensive financial summary and guidance for the upcoming year. For fiscal 2024, the company reported an adjusted net revenue of CAD204.4 million, with earnings per share reaching CAD0.39. Their assets under management (AUM) grew by 132% year-over-year to approximately CAD1.18 billion, while the adjusted EBITDA stood at CAD116.1 million. The company also highlighted a robust cash and digital asset treasury balance of CAD81.3 million. Looking forward to 2025, DFI Technologies provided a conservative revenue guidance of CAD227 million, driven by strategic expansions and product launches across new geographies. The company aims to roll out 100 exchange-traded products by year-end, supported by its recent acquisition of Neuronomics and strategic partnerships in Asia, the Middle East, and Africa. Additionally, their DeFi Alpha unit reported significant revenue contributions of CAD132.1 million, with expectations for continued growth in arbitrage opportunities. The company also emphasized its ongoing efforts to list its common shares on the NASDAQ, pending regulatory approval.

DeFi Technologies Financial Statement Overview

Summary
DeFi Technologies shows impressive revenue growth but struggles with profitability due to high operational costs and consistent net losses. The balance sheet indicates low leverage but a weak equity position. Cash flow management remains a significant concern with persistent negative free cash flow. Improvement in profitability and cash management is essential.
Income Statement
45
Neutral
DeFi Technologies has shown significant revenue growth from 2019 to 2024, but it continues to operate at a loss with negative net income and EBITDA. The gross profit margin is high at 93.04% for 2024, indicating efficiency in revenue generation, but negative EBIT and EBITDA margins suggest issues with operational costs. Revenue growth is strong, but profitability remains a concern.
Balance Sheet
55
Neutral
The company's balance sheet reveals a low debt-to-equity ratio of 0.6, indicating low leverage, and a high equity ratio of 1.75% for 2024. However, the company is struggling with negative equity in 2019 and low stockholders' equity in subsequent years. Despite an increase in total assets, the company needs to improve its equity and asset management.
Cash Flow
40
Negative
Cash flow analysis shows negative free cash flow and significant negative operating cash flow throughout the years, indicating liquidity challenges. While the operating cash flow to net income ratio suggests some operational efficiency, the company needs to address its cash burn rate to maintain financial stability.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
97.61M10.36M1.70M15.08M-46.78K
Gross Profit
90.82M7.28M-1.78M10.13M-48.37K
EBIT
-30.79M-3.57M-32.42M-46.86M-3.60M
EBITDA
-33.05M-3.57M-45.98M-43.22M2.07M
Net Income Common Stockholders
-39.04M-20.29M-49.97M-71.50M2.07M
Balance SheetCash, Cash Equivalents and Short-Term Investments
551.18M6.73M4.92M9.18M997.82K
Total Assets
1.32B591.96M209.93M459.69M7.30M
Total Debt
13.95M56.21M54.53M5.65K0.00
Net Debt
-8.98M49.48M49.63M-9.16M-332.07K
Total Liabilities
1.30B573.52M166.09M367.91M992.25K
Stockholders Equity
23.15M18.45M43.83M91.78M6.30M
Cash FlowFree Cash Flow
-129.96M-92.52M-91.05M-326.95M-2.19M
Operating Cash Flow
-129.96M-92.52M-89.64M-326.92M-1.55M
Investing Cash Flow
14.55M0.00-2.67M3.78M-782.38K
Financing Cash Flow
131.08M94.62M88.06M332.01M2.68M

DeFi Technologies Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.83
Price Trends
50DMA
0.83
Positive
100DMA
0.83
Positive
200DMA
0.83
Negative
Market Momentum
MACD
<0.01
Neutral
RSI
100.00
Negative
STOCH
16.67
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:DEFI, the sentiment is Positive. The current price of 0.83 is above the 20-day moving average (MA) of 0.83, above the 50-day MA of 0.83, and below the 200-day MA of 0.83, indicating a neutral trend. The MACD of <0.01 indicates Neutral momentum. The RSI at 100.00 is Negative, neither overbought nor oversold. The STOCH value of 16.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:DEFI.

DeFi Technologies Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
$9.50B31.80-23.34%-82.47%
62
Neutral
$11.80B10.31-7.45%2.91%7.43%-7.78%
55
Neutral
C$57.92M-18.42%17.11%-26125.00%
52
Neutral
C$51.06M9.3342.14%109.65%-22.41%
50
Neutral
$492.24M-2.15%27.99%90.99%
TSHUT
50
Neutral
C$2.65B3.76-6.53%15.44%-134.04%
47
Neutral
$678.27M-16.30%30.06%46.14%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:DEFI
DeFi Technologies
0.83
0.00
0.00%
TSE:HIVE
HIVE Digital Technologies
2.76
-1.25
-31.17%
TSE:GLXY
Galaxy Digital
28.58
11.10
63.50%
TSE:DMGI
DMG Blockchain Solutions
0.27
-0.30
-52.63%
TSE:BITF
Bitfarms
1.26
-1.92
-60.38%
TSE:HUT
Hut 8
25.40
11.82
87.04%

DeFi Technologies Corporate Events

Product-Related AnnouncementsExecutive/Board ChangesBusiness Operations and Strategy
DeFi Technologies’ Stillman Digital Expands Institutional Reach with Talos Integration
Positive
Apr 28, 2025

DeFi Technologies’ subsidiary, Stillman Digital, has integrated with Talos, enhancing institutional access to its regulated OTC liquidity and expanding its reach to Talos’s extensive client base. This strategic move is expected to boost Stillman Digital’s trading volumes and revenue growth, while the appointment of veteran trader Gary Pike as Head of Trading is set to strengthen the company’s institutional trading capabilities.

Spark’s Take on TSE:DEFI Stock

According to Spark, TipRanks’ AI Analyst, TSE:DEFI is a Neutral.

DeFi Technologies demonstrates strong revenue growth and strategic expansions; however, profitability challenges, negative cash flow, and valuation issues weigh heavily on the stock. Positive sentiment from the earnings call and strategic initiatives are encouraging, yet regulatory hurdles and market dependency remain key risks.

To see Spark’s full report on TSE:DEFI stock, click here.

Product-Related AnnouncementsBusiness Operations and Strategy
DeFi Technologies Partners with Nairobi Securities Exchange to Launch Kenya Digital Exchange
Positive
Apr 22, 2025

DeFi Technologies, SovFi, and Valour Inc. have partnered with the Nairobi Securities Exchange to launch the Kenya Digital Exchange (KDX), a regulated platform for tokenizing real-world assets. This initiative aims to enhance Kenya’s financial market infrastructure and position the country as a leader in digital asset trading in Africa. The KDX will be deployed in three phases, with full implementation by Q2 2026, offering a diverse revenue model and leveraging blockchain technology for secure transactions.

Spark’s Take on TSE:DEFI Stock

According to Spark, TipRanks’ AI Analyst, TSE:DEFI is a Neutral.

DeFi Technologies exhibits strong revenue growth and strategic market expansions, contributing positively to its outlook. However, profitability challenges, negative cash flow, and valuation issues weigh heavily on the stock. Positive sentiment from the earnings call and strategic initiatives are encouraging, yet regulatory hurdles and market dependency remain key risks.

To see Spark’s full report on TSE:DEFI stock, click here.

Delistings and Listing ChangesRegulatory Filings and Compliance
DeFi Technologies Seeks Nasdaq Listing with Amended SEC Filing
Neutral
Apr 15, 2025

DeFi Technologies Inc. has filed an amended Form 40-F with the SEC as part of its application to list its common shares on the Nasdaq Stock Market. This move, pending approval from Nasdaq and regulatory requirements, aims to enhance the company’s visibility and accessibility in the financial market, potentially impacting its operations and positioning within the DeFi industry.

Spark’s Take on TSE:DEFI Stock

According to Spark, TipRanks’ AI Analyst, TSE:DEFI is a Neutral.

DeFi Technologies demonstrates strong revenue growth and strategic expansion efforts, but faces significant profitability and cash flow management challenges. While earnings call sentiment is positive, reflecting strategic acquisitions and successful product launches, the company’s valuation metrics and technical indicators suggest financial struggles and potential stock volatility. Regulatory risks and market dependency remain key concerns.

To see Spark’s full report on TSE:DEFI stock, click here.

Financial DisclosuresRegulatory Filings and Compliance
DeFi Technologies Restates Q2 and Q3 2024 Financials
Negative
Apr 14, 2025

DeFi Technologies has restated its Q2 and Q3 2024 interim financial statements to amend the accounting treatment of its equity investments in digital assets. The adjustments include applying a discount for lack of marketability and reclassifying assets, which increased the net loss for both periods. These changes are non-cash and do not affect the company’s cash position, but highlight a material weakness in internal controls.

Spark’s Take on TSE:DEFI Stock

According to Spark, TipRanks’ AI Analyst, TSE:DEFI is a Neutral.

DeFi Technologies demonstrates robust revenue growth and strategic expansion efforts, but profitability and cash flow management remain critical challenges. The company’s technical indicators suggest stability, while valuation metrics highlight financial struggles. Positive sentiment from the earnings call and strategic initiatives are encouraging, but regulatory hurdles and market dependency are key risks.

To see Spark’s full report on TSE:DEFI stock, click here.

Executive/Board ChangesBusiness Operations and Strategy
DeFi Technologies Appoints Andrew Forson to Drive Global Expansion
Positive
Apr 8, 2025

DeFi Technologies has appointed Andrew Forson as President of DeFi Technologies and Chief Growth Officer of Valour, marking a significant leadership change aimed at driving global strategy and expansion. Forson’s extensive experience in digital assets and financial engineering is expected to bolster DeFi Technologies’ mission to make decentralized finance more accessible, positioning the company as a leader in digital finance.

Spark’s Take on TSE:DEFI Stock

According to Spark, TipRanks’ AI Analyst, TSE:DEFI is a Neutral.

DeFi Technologies exhibits robust revenue growth and strategic expansion but faces challenges with profitability and cash flow management. Stable technical outlook and recent corporate events provide some positive sentiment; however, valuation metrics indicate current financial struggles.

To see Spark’s full report on TSE:DEFI stock, click here.

Business Operations and StrategyFinancial Disclosures
DeFi Technologies Reports Record 2024 Financial Results and Strategic Growth
Positive
Mar 31, 2025

DeFi Technologies Inc. announced record financial results for 2024, with adjusted revenues of C$204.4 million and adjusted net income of C$115.07 million, reflecting strong operational performance and significant revenue growth. The company also reported a substantial 132% growth in assets under management (AUM) to C$1.18 billion, driven by favorable market conditions and strategic initiatives. DeFi Technologies has gained institutional recognition, being included in several prominent indices and investment vehicles, which underscores its strategic direction and role in the digital asset ecosystem. Looking forward, the company forecasts continued revenue growth in 2025, supported by its asset management business and market conditions.

Shareholder MeetingsFinancial Disclosures
DeFi Technologies Schedules Shareholder Call to Review 2024 Financial Results
Neutral
Mar 26, 2025

DeFi Technologies announced a shareholder call scheduled for March 31, 2025, to discuss its financial performance for the periods ending December 31, 2024. This call is significant as it will provide insights into the company’s financial health and strategic direction, potentially impacting its market position and stakeholder interests in the evolving DeFi landscape.

Delistings and Listing ChangesBusiness Operations and Strategy
DeFi Technologies Joins MVIS Global Index and VanEck ETF
Positive
Mar 24, 2025

DeFi Technologies Inc. has been included in the MVIS Global Digital Assets Equity Index and the VanEck Digital Transformation ETF, reflecting its significant progress in integrating traditional financial markets with digital assets. This inclusion, alongside its recent addition to the MSCI Canada Small Cap Index, underscores the company’s growing recognition as a leader in the digital asset space and highlights its expanding business model, which is gaining acceptance from major institutions.

Delistings and Listing ChangesBusiness Operations and Strategy
DeFi Technologies Joins VanEck Digital Transformation ETF
Positive
Mar 24, 2025

DeFi Technologies Inc. has been included in the MVIS Global Digital Assets Equity Index and the VanEck Digital Transformation ETF, marking a significant milestone for the company. This inclusion underscores DeFi Technologies’ progress in integrating traditional financial markets with digital assets, enhancing its reputation as an innovator in the digital asset ecosystem. The move follows its recent addition to the MSCI Canada Small Cap Index, further validating its expanding business model and acceptance by major institutions.

Business Operations and StrategyFinancial Disclosures
DeFi Technologies Reports Strong Inflows and Expands Digital Asset Offerings
Positive
Mar 10, 2025

DeFi Technologies announced that its subsidiary, Valour Inc., reported assets under management (AUM) of C$1.07 billion as of March 6, 2025, despite a 25% decrease due to digital asset price declines. February saw strong net inflows of C$16.4 million, marking the fourth consecutive month of substantial inflows, indicating growing investor confidence in Valour’s ETPs. The company maintains a robust financial position with a diversified treasury portfolio and continues to expand its digital asset offerings, including new ETP listings. Stillman Digital, another subsidiary, also showed growth by processing significant client volumes and generating substantial revenue, further enhancing DeFi Technologies’ market positioning.

Executive/Board ChangesBusiness Operations and Strategy
DeFi Technologies Strengthens Board with Chase Ergen Appointment
Positive
Mar 3, 2025

DeFi Technologies Inc. has appointed Chase Ergen, a prominent figure in decentralized finance and son of Dish Network’s founder, to its board of directors. Ergen’s extensive experience in satellite technology, telecommunications, and finance, along with his leadership in promoting financial empowerment, is expected to enhance DeFi Technologies’ strategic initiatives and strengthen its engagement with both retail and institutional investors. His appointment aligns with the company’s mission to bridge traditional and decentralized finance, reinforcing its leadership team and commitment to reshaping the financial landscape.

Product-Related AnnouncementsBusiness Operations and Strategy
Valour Expands ETP Offerings with New Digital Assets on Börse Frankfurt
Positive
Mar 3, 2025

DeFi Technologies’ subsidiary, Valour Inc., has launched four new digital asset ETPs on the Börse Frankfurt exchange, expanding its offerings to include Valour Dogecoin, Valour Aptos, Valour Sui, and Valour Render ETPs. This move aims to provide European investors with diversified and institutional-grade access to the cryptocurrency market, reflecting Valour’s commitment to innovation and meeting investor demand for exposure to emerging blockchain technologies.

Delistings and Listing Changes
DeFi Technologies Joins MSCI Canada Small Cap Index, Marking Growth Milestone
Positive
Feb 12, 2025

DeFi Technologies Inc. has been added to the MSCI Canada Small Cap Index, reflecting its growth and increasing market recognition. This inclusion enhances the company’s visibility among institutional investors, signaling strong market performance and increased investor confidence in its strategic direction.

Business Operations and Strategy
DeFi Technologies Expands Middle East Presence with CMF 2025 Sponsorship
Positive
Feb 6, 2025

DeFi Technologies Inc., through its subsidiary Valour, has announced its Platinum Sponsorship of the Capital Markets Forum 2025 in Riyadh, Saudi Arabia. This move highlights DeFi Technologies’ strategic expansion into the Middle Eastern market and supports Saudi Arabia’s Vision 2030 economic transformation plan. By aligning with major financial institutions, DeFi Technologies aims to enhance its presence in the global financial ecosystem and promote digital asset investment solutions, thereby strengthening its position as a leader in integrating traditional and decentralized finance.

Business Operations and StrategyFinancial Disclosures
Valour Reports Strong AUM Growth and Expands Digital Asset Offerings
Positive
Feb 5, 2025

Valour Inc., a subsidiary of DeFi Technologies, reported significant growth in January 2025, achieving C$1.4 billion in assets under management (AUM), representing a 23% rise from the previous month. This growth was driven by increasing digital asset prices and strong demand for ETPs, notably following the introduction of 20 new digital asset ETPs on the Spotlight Stock Market. The company’s robust financial position, with a cash and USDT balance increased by 24.9% to C$27.2 million, and a diversified digital asset treasury, highlights its solid market positioning. Valour’s continued inflows and record trading volumes underscore investor confidence and its leadership in the digital asset ETP space, reinforcing its commitment to expanding innovative investment opportunities.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.