DeFi Technologies Faces Investor Lawsuit and Slashed Revenue Outlook

DeFi Technologies CA24464X1069

Shares of DeFi Technologies are under significant pressure, primarily driven by an active class action lawsuit in the United States. The legal challenge, which has a key deadline approaching, centers on allegations of misleading statements and a substantial reduction in the company's 2025 revenue forecast.

A federal securities class action lawsuit has been filed against DeFi Technologies in the U.S. The case is open to investors who purchased the company's securities between May 12, 2025, and November 14, 2025.

The complaint alleges that the company made false and misleading statements and failed to disclose material information during that period. The core accusations detailed in the filing include:

• Significant delays in implementing its core, revenue-driving DeFi Alpha arbitrage strategy.
• A failure to adequately account for rising competition from other Digital Asset Treasury (DAT) firms.
• Insufficient disclosure regarding the negative impact this competition would have on the viability of its arbitrage model.
• A low probability of achieving the previously issued revenue guidance for the full year 2025.

The lawsuit contends that, against this backdrop, positive statements about the company's business trajectory and future prospects were materially misleading, presenting an overly optimistic picture to investors.

Drastic Forecast Reduction and Market Reaction

The financial consequences of these issues became starkly apparent in November 2025. On November 14, 2025, DeFi Technologies released its third-quarter 2025 results, reporting a revenue decline of nearly 20%, which fell well below market expectations.

More impactful was the accompanying drastic cut to its full-year forecast:

• Previous 2025 Revenue Guidance: $218.6 million
• Revised 2025 Revenue Guidance: Approximately $116.6 million

Management cited delays in capitalizing on arbitrage opportunities due to an increasing number of competitors, alongside a growing convergence in the price movements of digital assets. Following this announcement, DeFi Technologies' stock price experienced a pronounced decline.

Key Deadline and Forward Look

A critical procedural deadline in the class action is set for January 30, 2026. By this date, affected investors may seek appointment as the Lead Plaintiff for the class, a role that can influence the prosecution of the claims against the company.

The near-term focus for the market will remain on the progression of this lawsuit. Furthermore, any additional communication from DeFi Technologies regarding its strategy, competitive landscape, and revenue outlook will be crucial in determining whether confidence in the company's forecasts can be restored.