DeFi Technologies: Balance Sheet Turnaround Meets a September Nasdaq Showdown

DeFi Technologies swings working capital to $47.3M but net income plummets 80%+; stock below $1 threatens Nasdaq listing; former CEO returns to craft survival strategy.

DeFi Technologies swung its working capital from negative to positive in the first quarter — a rare bright spot in a quarter that saw net profit collapse and the stock lose another 10% in a single session. The company now faces a critical deadline at Nasdaq, where its shares have been trading well below the $1 threshold for weeks.

For the three months to March 2026, the crypto-focused firm posted revenue of $11.2 million and net income of $4.9 million. That compares with net income of $30 million in the same period last year — a drop of more than 80%. The operating core contributed $6.3 million, with staking yields and management fees providing a steady base. Stillman Digital, the institutional trading arm, also saw a slight uptick in commission income.

The real story, however, lies in the balance sheet. Working capital flipped from negative to $47.3 million, a transformation management is likely to highlight in any investor discussions. Total liquidity — including cash, digital assets, and equity stakes — stood at roughly $103 million, while the entire portfolio was valued at about $156 million. The asset-management subsidiary Valour generated $3.3 million in fees from staking, lending, and administration on an average AUM of $533.6 million. Stillman Digital added $2.9 million in trading commissions.

Yet the stock market remains unimpressed. Shares closed at €0.62 on Friday, a decline of more than 10% on the day. On a 12-month basis, the paper has lost 82% of its value, and it sits nearly 45% below its 200-day moving average. That relentless slide has triggered an official warning from Nasdaq, which requires the company to keep its share price above the $1 mark for ten consecutive trading days by early September. Failure to do so could force a reverse stock split or outright delisting.

In response, DeFi Technologies has brought back former chief executive Russell Starr as a strategic adviser. Starr, who knows the company from his previous tenure as CEO, is tasked with sharpening the capital-markets strategy and reassuring institutional investors. The move signals that the board views the Nasdaq deadline as existential rather than peripheral.

Operationally, there are some encouraging signs from the current quarter. April saw net inflows of $14.6 million — the second-strongest monthly figure in the past twelve months. Total assets under management have climbed above $550 million. Management is also pushing ahead with expansion into Europe and Brazil, rolling out new institutional products designed to achieve a target monetization rate of 4.5%.

Whether those efforts can reverse the stock’s trajectory before the September deadline is uncertain. The company has acknowledged a challenging market environment, but it is betting that product innovation and a stronger balance sheet will eventually win back investor confidence. For now, the clock is ticking.