DeFi Technologies Shares Face Continued Headwinds

DeFi Technologies CA24464X1069

The stock of DeFi Technologies remains under significant pressure following a volatile fourth quarter in 2025. A key deadline that passed on Friday, related to the appointment of a lead plaintiff in a class action lawsuit, is a primary focus for investors and adds to the current negative sentiment.

Legal challenges are centered on the period between May 12, 2025, and November 14, 2025. Complaints filed by firms including Faruqi & Faruqi, LLP allege that the company misled investors concerning its DeFi arbitrage strategy and the competitive landscape it operates within.

The situation escalated on November 14, 2025. On that date, DeFi Technologies slashed its full-year 2025 revenue guidance by nearly 47%, from $218.6 million USD to approximately $116.6 million USD. The company concurrently reported a quarterly revenue decline of 20%. These events triggered the resignation of CEO Olivier Roussy Newton and precipitated a sharp sell-off in the shares.

Key Data Points:
* Class Action: The deadline for lead plaintiff motions expired on Friday.
* Revised 2025 Forecast: Revenue guidance cut to ~$116.6 million USD from $218.6 million USD.
* Short Interest: Approximately 6.7% of the free float was sold short as of mid-January.

Strategic Pivot and Leadership Challenge

Amid these difficulties, the company is proceeding with expansion efforts through its subsidiary, Valour. Recent reports indicate Valour has secured regulatory approval to list yield-bearing crypto exchange-traded products (ETPs) on the London Stock Exchange. This move is viewed as a strategic attempt to diversify revenue streams, particularly after the recent scrutiny of its arbitrage-focused activities.

The task of restoring investor confidence falls to new CEO Johan Wattenström. He receives little support from the broader crypto market currently, with Bitcoin trading weaker around $75,000 and Ethereum remaining well below its 2025 peaks.

Persistent Skepticism from Short Sellers

Market skepticism is further evidenced by short-selling activity. By mid-January, roughly 25.9 million shares had been sold short, equating to about 6.7% of the free float. While this represents a slight decrease of 3.9% from the prior reporting period, the level remains notably high. Prominent market participants such as Susquehanna International Group and Citadel Advisors are cited among those closely monitoring or shorting the equity.

All eyes now turn to the upcoming quarterly earnings report. This release will be a critical test, revealing whether the company can meet its revised 2025 revenue target of around $116.6 million USD and if the new UK listings via Valour can generate meaningful capital inflows.