DeFi Technologies: A Record Year Overshadowed by Shrinking Assets

DeFi Technologies posted a record $62.7M profit in 2025 but faces pressure as Valour's AUM plunges, triggering major price target cuts and a strategic pivot.

DeFi Technologies posted its most profitable year ever in 2025, yet analysts are sounding the alarm. The digital asset firm reported a staggering net income of $62.7 million, a dramatic reversal from a $27.6 million loss in 2024. This performance was fueled by a 215% surge in annual revenue, which reached $99.1 million. Despite these historic figures, two major brokerages slashed their price targets on April 8, pointing to a rapidly deteriorating metric in the new year.

The core concern is the swift decline in assets under management (AUM) at its Valour subsidiary. After peaking at $989 million at the end of Q3 2025, Valour's AUM fell to $622.3 million by year-end. By early April 2026, it had plummeted further to approximately $445 million. This erosion has brought the company perilously close to its estimated operational breakeven point of $425 million in AUM, a threshold analysts say is supplemented by revenue from other business lines.

In response to this pressure, H.C. Wainwright cut its price target by 63.6% to $2.00, while maintaining a Buy rating. B. Riley followed, reducing its target from $1.60 to $1.00. The stock, currently trading around €0.67, has lost about 67% over the past year and sits roughly 50% below its 200-day moving average.

Confronting this volatility, management is executing a strategic pivot designed to reduce dependence on pure cryptocurrency price swings. A central component is the expansion of its institutional-focused subsidiary, Stillman Digital. The company views this unit as more resilient, benefiting from general market volatility and institutional trading activity rather than direct crypto exposure. Stillman's trading commissions soared 355% to $9.6 million in the last fiscal year, with growth of 15-20% targeted for 2026.

The strategic overhaul extends to product diversification. Alongside its existing exchange-traded products (ETPs), DeFi Technologies plans to launch more traditional, regulated vehicles such as UCITS funds, actively managed certificates (AMCs), and hedge fund strategies. The recent appointment of Jacob Lindberg as Chief Revenue Officer is intended to drive this broader European growth strategy.

Financially, the company has demonstrated significant operational progress. CEO Johan Wattenström highlighted a remarkable revenue trajectory, climbing from a loss of CAD -14 million in 2022 to CAD 99 million in 2025. Concurrently, operating expenses were reduced by 14% to $52.6 million, with further cuts planned for this year, primarily from a marketing budget that recently stood at CAD 8.8 million.

The balance sheet remains a point of strength. As of December 31, 2025, the company held $113.8 million in cash and stablecoins, with $91.2 million in pure cash. Including its digital treasury and venture portfolio, the total value reached approximately $178.7 million.

Geographic expansion continues cautiously. After listings on the London Stock Exchange and Brazil's B3 late last year, the company is adopting a conservative approach in new markets like Brazil, focusing on building organic teams and cost-efficient distribution partnerships amid macroeconomic uncertainty.

A separate regulatory development emerged in early April. The Ontario Securities Commission (OSC) issued a management cease trade order due to a delay in filing the audited annual financial statements, attributed to a late third-party review report. The order restricts trading by the CEO and CFO only, not by other shareholders.

For the remainder of 2026, the operational focus will be on scaling the new regulated investment products and expanding institutional infrastructure. The overarching goal is to transform from a pure crypto vehicle into a more robust, diversified platform, though near-term pressure from falling AUM continues to cloud the equity story.