DeFi Technologies Shares Face Severe Downturn Amidst Operational Contrast

DeFi Technologies CA24464X1069

The stock of DeFi Technologies is trading perilously close to its annual low, a stark contrast to the aggressive expansion being pursued by its operational subsidiary, Valour. Investor confidence has been deeply shaken, with the market largely ignoring new cryptocurrency product launches. This skepticism centers on a drastic reduction in financial guidance and the looming threat of class-action lawsuits.

A significant downward revision of the company's outlook is the primary driver behind the current share price weakness. Following a disclosure on November 13, 2025, which revealed a nearly 20% year-over-year revenue decline for the third quarter, management was forced to slash its projections. The revenue forecast for the full year 2025 was almost halved, cut from an initial $218.6 million to approximately $116.6 million.

This guidance cut has triggered legal repercussions. Multiple law firms, including Kahn Swick & Foti and ClaimsFiler, are preparing class-action suits. They allege the company harmed investors by disclosing the negative business developments too late. Affected shareholders have until January 30, 2026, to step forward as lead plaintiffs. This legal overhang is stifling any potential recovery for the stock, with investors clearly weighing governance-specific risks and disappointing guidance more heavily than favorable broader market conditions.

Subsidiary Growth Fails to Impress the Market

Despite the parent company's technical chart struggles, subsidiary Valour Inc. continues its growth trajectory. On December 17 and 18, 2025, the company launched new leveraged Bitcoin and Ethereum Exchange Traded Products (ETPs) on Sweden's Spotlight Stock Market. It also secured a strategic foothold in Latin America with the approval of a Solana ETP on Brazil's B3 exchange.

This operational activity stands in sharp opposition to the equity performance. Although Valour reported Assets Under Management (AUM) of roughly $947 million for Q3 2025, the market is currently assigning no value to these advances. The disconnect between business execution and public market valuation continues to widen.

Price Action and Critical Support Level

The fallout from the revised guidance has pushed the share price far from its 52-week high of $4.95. The stock is now battling to maintain the $1.00 level on U.S. markets, trading dangerously near its annual low of $0.91. The company's market capitalization has contracted to about $382 million.

Even a Bitcoin price hovering around $88,000—typically a tailwind for crypto-related equities—is currently failing to generate meaningful gains for DeFi Technologies' shares. The path forward hinges critically on the stock's ability to defend the $1.00 support level. Until the legal uncertainties ahead of the January 30, 2026 deadline are resolved and the company articulates a credible strategy to restore its original growth targets, upward potential remains severely constrained despite positive operational updates.