And here again the complete text below. Definitely exciting to read. Of course, many passages have been specially chosen to create a reassuring impression. Overall, however, I think the statements about the goals are well formulated and generally make sense to me. I'm curious to see what will come of it. For me there are only 2 possibilities: Total loss or a very good investment in the next decade.
Dear shareholders,
At the end of 2025, I would like to base this letter on the core statement that guides all our actions.
DeFi Technologies aspires to be the global leader in wealth management services and investment products, with a scalable, vertically integrated platform of investment vehicles and capital markets infrastructure that aims to revolutionize traditional, over-regulated and inefficient investment, primary and secondary markets. The legacy system is characterized by an outdated infrastructure cluttered with inefficient and costly intermediaries that impose misguided regulations affecting both investors and entrepreneurs.
We are building both centralized and decentralized financial systems and positioning ourselves for the convergence of these paradigms over time. Many politicians and bureaucrats remain a destructive force, but they cannot stop the rapid evolutionary pressures of free markets that are shaping an objectively better way for payments, value storage and frictionless capital markets.
We plan to introduce a series of internally developed innovations in these areas that will reduce costs, increase value and scalability, and deliver unprecedented customer value.
We are focused on creating, protecting and returning long-term shareholder value, and we remain disciplined despite market volatility as we build a world-class company. Daily share price fluctuations are just noise. We focus on the real signal: execution.
This isn't rhetoric - it's a blueprint. And in 2025, we have significantly advanced that plan in terms of products, geography, institutional infrastructure and balance sheet strength.
2025: laying the foundation for scalability
Valour reached 102 ETPs and built the world's most diversified regulated digital asset portfolio
Valour's growth to more than 100 listed ETPs is not just a milestone in terms of products. It reflects a simple strategic goal: to provide investors with options and the ability to invest in the world's leading digital assets in a regulated, exchange-traded format, using the same brokerage and custody services they already trust.
This is not just spot products for Bitcoin and Ether. Our offering spans many of the key networks and themes shaping digital assets, giving investors the ability to express their views across the sector, with no wallets, no private keys and no unregulated trading venues. Valour now offers the most diverse range of regulated digital asset ETPs in the world, and this breadth is a lasting competitive advantage.
Just as importantly, we operate this platform with a level of capital efficiency that we believe is second to none. We don't just list products and charge an administration fee. We have monetized the entire issuance process from start to finish:
- Innovation and product structuring
- Listing and distribution in regulated markets
- Trading the inflows and outflows of our products
- Market making and provision of liquidity
- Staking and revenue generation on underlying assets, where applicable, using our proprietary technology and infrastructure
That's the difference between a wrapper and a platform. When you monetize across issuance, trading, liquidity and yield, you create multiple revenue streams from the same underlying growth engine. That's why we believe we are building one of the most capital-efficient asset management businesses in the world.
Geographic expansion from "potential" to "operational reality"
We have built DeFi Technologies to be global, not local. In 2025, we confirmed this focus with significant progress in key markets and listings.
We have expanded our presence through the following measures:
- London Stock Exchange
- SIX Swiss Exchange
- B3 - Brazilian Stock Exchange, including listings that have established a strategic bridgehead in Latin America
Brazil is important because it is not just another listing. It is proof that we can take our platform into new regulatory environments, connect with local market infrastructure and build distribution channels beyond our historical base.
Looking ahead, we expect to add more locations and distribution channels in 2026, with a particular focus on expanding our presence in Europe and Latin America and bringing new regions into the platform, including Africa and the Middle East, as we build the structures, partnerships and market access needed to scale.
Stillman Digital has further strengthened the institutional layer of our platform
While Valour is the distribution engine for investment products Stillman Digital is an important part of the institutional stack, enabling DeFi Technologies to monetize flows, deepen liquidity and build lasting relationships with sophisticated counterparties.
In 2025, Stillman continued to grow its institutional execution capabilities and expand its footprint. This is important because institutional activity is not just about trading. It's about infrastructure:
- Execution quality and reliability
- Access to liquidity and block workflows
- Market intelligence and feedback loops that feed into product design and distribution
- Connectivity that extends our offering beyond a single wrapper
This is vertical integration in practice. Not just issuing products, but strengthening the infrastructure that makes those products more competitive and scalable.
We are developing second generation products for larger pools of capital
We're proud of what we've built with ETPs, but we're equally focused on what's next.
The next phase involves second-generation products that are more institutionally compatible and better suited to large allocators and stricter mandates, which will accelerate the growth of Valour's assets under management and therefore our core revenues. In addition to significantly expanding our distribution, our next generation products are designed to add value through active strategies and purpose-built portfolios. These include:
- UCITS-like fund structures
- Actively managed certificates and exchange traded notes
- Tokenization for the benefit of the native crypto community
- Hedge fund structure for institutions and fund of funds
- Additional institutionally focused vehicles designed to broaden distribution and increase the persistency of assets under management
This development is not a departure from our strategy, but the strategy itself. If we believe in convergence, we need to create the frameworks and structures that allow capital to move safely, efficiently and at scale between paradigms.
We have strengthened our balance sheet to increase the momentum of execution, broaden our scope and enable larger transactions and potential acquisitions
In 2025, we also strengthened our ability to act rather than react.
We have raised USD 100 million in capital, which has significantly improved our strategic flexibility. We also ended the third quarter of 2025 with USD 165.7 million in cash, cash equivalents and digital assets as well as USD 44 million in venture investments and without debt ended.
This balance sheet strength is not for peace of mind. It is for capital growth.
As stated in our investor communications, we intend to deploy capital in a way that strengthens the platform:
- Optimize treasury and liquidity deployment
- Support DeFi alpha and market-making activities where they improve product competitiveness and monetization
- Seeding and scaling products and vehicles where capital unlocks institutional flows
- Financing expansion into new regions and distribution channels
- Pursuing selective strategic opportunities that deepen vertical integration or accelerate capabilities
In short, we aim to achieve high returns on liquidity by deploying it across the system and not leaving it unutilized.
The valuation gap and our focus for the future
It is worth taking a step back and recognizing what many shareholders and we as management have clearly stated.
We are building in a young industry that is volatile and rapidly evolving. Over the course of the year, we have made deliberate price changes in response to changing market conditions, regulatory developments and general macroeconomic factors. Many market participants and analysts expected a more favorable environment for Bitcoin and the crypto market as a whole in 2025, and we shared this view.
Even with this in mind, the current market valuation implies a skepticism that we believe is disproportionate to our profitability, our balance sheet strength and the platform we have built. Simply put, the market is not valuing our core operating businesses, which generate real revenue and earnings power, at their fair market value.
Based on current data as of December 29, 2025: Market capitalization is approx. USD 285.8 million. (Nasdaq.com)
- Less USD 165.7 million in cash, cash equivalents and digital assets as at September 30, 2025
- Less USD 44.0 million in private venture capital investments at fair value as at September 30, 2025.
- The implied value for the core operating businesses, including Valour, Stillman and Reflexivity, is approximately USD 76.1 million
In view of sales of around USD 80 million and an operating result of USD 39 million in the first three quarters and no debt this implied operating value does not reflect what we believe we have built.
As benchmark analyst Mark Palmer put it:
"The market is effectively valuing the company as if it were a distressed asset rather than a profitable, well-capitalized and structurally advantaged gateway to digital assets."
We understand that. And we agree that this discrepancy is real.
Markets can remain mispriced for longer than desired, especially in a sector where narratives can change quickly and many participants do not yet fully understand how a vertically integrated digital asset platform makes money across multiple tiers.
Our answer is not to argue with the market. Our answer is to continue to act, to show more clearly what gives us our edge and to gain trust through consistent performance.
In 2026, we will work tirelessly to close the gap between what we build and what the market values by:
- continuing to scale AUM and monetization in a disciplined way
- Expanding geographically so that our distribution is broader and less concentrated
- Accelerating the launch of second generation institutional products
- strengthen institutional execution and infrastructure through Stillman
- Maintain transparency and credibility through consistent communication and measurable results
- Productize our technology: Valour Custody and Market Infrastructure Launch Valour Custody as a standalone business Opening our internal custody platform to retail and institutional clients and as a backend infrastructure for wallets and third-party financial services. Expanding into decentralized market services Introducing new market infrastructure offerings, including dark pool-like execution venues, as an extension of our broader platform. Why it matters: These initiatives deepen vertical integration, reduce reliance on traditional intermediaries and create a new revenue stream through the monetization of our technology stack.
Trust and credibility are earned through performance and execution, not words. We intend to win this back in the only way that matters: by building a world-class company and increasing shareholder value.
2026: The next phase of growth
We are still a company in the early stages of its growth, which is precisely why the opportunity is so attractive.
Diverse, mutually reinforcing growth paths
- Product expansion and growth of assets under management through Valour Expanding regulated access to the world's leading digital assets, expanding distribution and scaling assets under management through an increasingly diversified ETP offering.
- Institutional execution and infrastructure expansion through Stillman Digital Deepening institutional client service, expanding execution capabilities and strengthening market structure and liquidity infrastructure.
- Expand research and analytics through Reflexivity Expand research, data and market intelligence to support product development, distribution and institutional collaboration.
- Capital markets and monetization of funds through DeFi alpha and disciplined use of liquidity Deploy capital into financial and trading strategies with a focus on risk management, liquidity efficiency and sustainable returns.
- Product and service innovation and expansion Productizing our internal capabilities into external offerings, including custody and broader market infrastructure services, to create new revenue streams beyond management, trading and staking fees.
- Strategic acquisitions and investments Pursue selective M&A and venture investments that expand capabilities, accelerate distribution, deepen vertical integration or add complementary revenue streams.
- Expand into new regions as additional markets come online Expand presence and distribution in Europe, Latin America, Africa and the Middle East, with a repeatable market access playbook to bring new regions onto the platform.
Our mission remains clear. We will continue to drive innovation, reduce costs, increase value and improve scalability. We will continue to work towards the convergence of traditional capital markets and decentralized financial services and not be distracted by short-term fluctuations. The rest is secondary. Concentrate on the essentials.
To our shareholders: Thank you for your patience, your support and your trust. We do not take your trust for granted and strive to earn it every day through our work. To our partners: Thank you for working with us and expanding the capabilities of our platform. And to our team: thank you for your tireless work behind the scenes. This progress is the result of your discipline, creativity and perseverance.
I look forward to sharing more details with you in the coming weeks.
Yours sincerely
Johan WattenströmChief Executive Officer and Chairman
DeFi Technologies Inc.
