DeFi
DeFi Technologies Sees Shares Surge 25% After Crypto Trading Success, Launches NEAR Token ETP
Full summary
- DeFi Technologies shares jumped more than 25% after reporting $14.1 million in third-quarter profit from cryptocurrency trading.
- The company generated approximately $105 million in revenue in 2024 with approximately $10 million in annual costs.
- DeFi Technologies plans to continue adding Bitcoin to its balance sheet as part of its treasury strategy.
- The company’s subsidiary, Valour, has launched a new exchange-traded product (ETP) for the NEAR token on the Swedish stock market Spotlight.
- DeFi Technologies aims to expand its ETP offerings to new markets including the Middle East, Asia and Africa.
DeFi Technologies, a Canadian fintech company, saw its stock price surge more than 25% this week following the announcement of significant profits from its cryptocurrency trading desk.
The company said it generated $14.1 million in “low-risk arbitrage trades” since the start of the third quarter, demonstrating the potential of its strategic trading operations in the volatile cryptocurrency market.
The company’s shares hit $1.64 on Wednesday, up from $1.27 on July 11, before correcting slightly to $1.47. This 15.4% increase outpaced that of Bitcoin itself, underscoring investor confidence in DeFi Technologies’ business model and execution.
DeFi Technologies Inc. (DEFTF): Yahoo
Curtis Schlaufman, Vice President of Communications at DeFi Technologies, told Decrypt,
“The company has already generated approximately $105 million in revenue with approximately $10 million in annual costs, with second-quarter revenue yet to be announced.”
These impressive numbers have caught the attention of market analysts, with some claiming that the company is both “misunderstood” and “undervalued” given its current market capitalization of $429 million.
While DeFi Technologies’ trading desk, DeFi Alpha, has been a major driver of profits, the company’s core business remains centered on Valor, its asset management subsidiary.
Valour offers a number of cryptocurrency exchange-traded products (ETPs) in Europe, taking advantage of more lenient regulations to provide exposure to a wide range of crypto assets, including Solana, Cardanand more recently, Near Protocol (NEAR).
Valour has launched a new ETP for NEAR, Near Protocol’s native token. This ETP will be traded on the Swedish Spotlight Exchange, offering retail and institutional investors access to the decentralized application building platform.
Elaine Buehler, the company’s chief product officer, noted that this new offering will give investors access to the NEAR protocol, known for its impact on NFTs and DeFi.
DeFi Technologies’ expansion plans are ambitious. Schlaufman said:
“We have ambitious plans to continue expanding our ETP offering and enter new emerging markets, including the Middle East, Asia and Africa.”
This global expansion strategy could further boost the company’s growth and market presence.
The company has also joined the trend of companies adopting Bitcoin as a treasury reserve asset. In June, DeFi Technologies purchased 110 BTC for $7.6 million, following in the footsteps of companies like MicroStrategy. Schlaufman confirmed the company’s intention to continue this strategy, saying:
“We will continue to add more BTC based on our Bitcoin Treasury strategy.”
The success of DeFi Technologies comes at a time when the crypto industry is facing increased scrutiny and regulatory challenges in many jurisdictions.
