TLDR

• DeFi Technologies’ stock surged over 25% after reporting $14.1 million in Q3 profits from crypto trading.
• The company has generated approximately $105 million in revenue in 2024 with about $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 NEAR token on Sweden’s Spotlight Stock Market.
• DeFi Technologies aims to expand its ETP offerings into new markets, including the Middle East, Asia, and Africa.

DeFi Technologies, a Canadian fintech firm, has seen its stock price surge over 25% this week following the announcement of significant profits from its crypto trading desk.

The company reported generating $14.1 million in “low-risk arbitrage trades” since the start of the third quarter, showcasing the potential of its strategic trading operations in the volatile crypto market.

The company’s shares reached $1.64 on Wednesday, up from $1.27 on July 11, before correcting slightly to $1.47. This 15.4% increase outperformed Bitcoin itself, highlighting investor confidence in DeFi Technologies’ business model and execution.

Curtis Schlaufman, VP of communications at DeFi Technologies, told Decrypt,

“The company has already generated approximately $105 million in revenue with about $10 million in annual costs with Q2 revenues yet to be announced.”

These impressive figures have caught the attention of market analysts, with some arguing that the firm is both “misunderstood” and “undervalued” at its current market capitalization of $429 million.

While DeFi Technologies’ trading desk, DeFi Alpha, has been a significant driver of profits, the company’s core business remains centered around Valour, its asset management subsidiary.

Valour provides numerous crypto exchange-traded products (ETPs) in Europe, taking advantage of more lenient regulations to offer exposure to a wide range of crypto assets, including Solana, Cardano, and most recently, Near Protocol (NEAR).

 Valour has launched a new ETP for NEAR, the native token of the Near Protocol. This ETP will be traded on Sweden’s Spotlight Stock Market, providing both retail and institutional investors access to the decentralized application creation platform.

Elaine Buehler, the firm’s head of product, emphasized that this new offering will enable investors to access NEAR protocol, known for its impact on NFTs and DeFi.

DeFi Technologies’ expansion plans are ambitious. Schlaufman stated,

“We have ambitious plans to continue expanding our ETP offerings and to enter new and 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 corporations 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, stating,

“We will continue to add more BTC as appropriate in relation to our Bitcoin treasury strategy.”

DeFi Technologies’ success comes at a time when the crypto industry is facing increased scrutiny and regulatory challenges in many jurisdictions.