DeFi Tech

DeFi Technologies Inc. announces financial results for Q3 2024: $DEFI (-7,16 %)

Fundamentally, the Group's figures are more than respectable

In contrast to many other crypto stocks, DeFi Technologies is still valued very favorably with a 2025 P/E ratio of 7 in view of its continued growth. In addition, the Group has a decent liquidity cushion and a listing on the US technology exchange Nasdaq could be imminent.

Total revenue, EBITDA and net income: DeFi Technologies reported total revenue of CAD 24.2 million (approx. USD 17.8 million ) and CAD 152.4 million (approx. USD 112.0 million ) for the three- and nine-month periods ended September 30, 2024, and net income of CAD 24.9 million (approx. USD 18.3 million ) and CAD 97.2 million (approx. USD 71.4 million ) for the three- and nine-month periods ended September 30, 2024. The Company also reports EBITDA of C$26.2 million ($19.3 million) and C$102.3 million ($75.2 million) for the three and nine months ended September 2024 , reflecting its strong operating performance and robust revenue growth.

Significant growth in assets under management (AUM): AUM increased 51.6% since December 31, 2023 to approximately C$770.5 million ( $570.8 million ) as of September 30, 2024 , driven by favorable market conditions, new product launches and strategic corporate actions that improved trading volumes and overall financial performance. Since September 30, 2024, AUM has continued to increase, reaching a record CAD 1.1 billion ( USD 785.4 million ) as of November 13, 2024.

Outlook 2024: DeFi Technologies expects to generate annual revenue of approximately CAD 198.6 million ( USD 141.5 million ) in fiscal 2024, supported by continued AUM growth, upcoming ETP launches and the integration of new acquisitions that will take advantage of favorable conditions in the digital asset sector. In addition, the company continues to explore additional Defi Alpha trading opportunities.

https://www.deraktionaer.de/artikel/aktien/defi-technologies-die-zahlen-sind-da-20370072.html

https://www.prnewswire.com/news-releases/defi-technologies-inc-announces-q3-2024-financial-results-year-to-date-revenues-of-c152-4-million-us112-0-million-ebitda-of-102-3-million-us75-2-million-and-net-income-of--c97-2-million-us71-4-million-and-notable-st-302306400.html

DeFi Technologies share: above-average growth potential. $DEFI (-7,16 %)

B. Riley's decision to initiate coverage of DeFi Technologies Inc. stock (ISIN: CA2449161025, WKN: A3EQD5, ticker symbol: R9B, CBOE Canada symbol: DEFI, NASDAQ OTC symbol: DEFTF) with a "buy" rating and a price target of $5 CAD shows that analyst Hal Goetsch is optimistic about the company's growth potential. Here are the key points of the analysis and their implications:

1. "buy" rating and price target: optimism despite volatility

- B. Riley Securities initiates coverage of DeFi Technologies with a "buy" rating and a price target of CAD 5. This rating shows that the analysts expect above-average growth potential for the stock and believe that investors can benefit from the current valuation.

- The decision to initiate coverage with a positive rating reflects confidence in DeFi Technologies' business strategy, even though some uncertainties remain in the market.

2. bridge between traditional and digital finance

- The analyst emphasizes that DeFi Technologies is working to develop financial products that bridge the gap between traditional financial companies such as banks and brokerages and the new digital currency ecosystems. This positioning is strategic as it enables the company to capitalize on the growing integration of decentralized finance (DeFi) into the traditional financial sector.

- Such bridging solutions are particularly valuable at a time when many traditional financial players are looking for ways to prepare for the adoption of digital assets. DeFi Technologies could therefore play a key role in the expansion of this infrastructure.

3. strong but volatile growth potential

- B. Riley Securities emphasizes that DeFi Technologies' growth potential is strong but volatile. This is because the company operates in a relatively young market segment whose growth is still in its infancy. The expansion of exchange-traded products (ETPs) based on digital assets offers significant potential, but also entails risks.

- The volatility of company growth is strongly linked to the volatility of digital assets. As the prices of cryptocurrencies and other digital assets can vary widely, DeFi Technologies' business prospects could also fluctuate significantly.

4. long-term perspective and market opportunities

- In the long term, DeFi Technologies could benefit from the increasing acceptance and integration of digital currencies into the mainstream financial market. As traditional financial companies continue to integrate digital assets into their services, the need for products that connect these two worlds will continue to grow.

- The introduction of exchange-traded products (ETPs) based on digital currencies could be particularly lucrative as investors look for regulated ways to invest in the cryptocurrency market without having to hold digital assets directly.

Summary and conclusion

B. Riley Securities initiated coverage of DeFi Technologies with a "buy" rating and a price target of $5 CAD, indicating strong growth potential for the company. The analysts emphasize that DeFi Technologies represents an important bridge between the traditional financial world and the growing digital currency ecosystems. This strategic positioning could allow the company to benefit from the increasing integration of DeFi solutions into the mainstream financial market.

However, the growth of DeFi Technologies comes with risks due to the volatile nature of digital assets. The price volatility of cryptocurrencies could impact the company's business performance, which investors should be aware of.

Overall, B. Riley Securities' positive rating suggests that there is high confidence in the company's long-term growth opportunities. For investors willing to accept market volatility, DeFi Technologies could represent an attractive investment opportunity to capitalize on the growth potential of digital financial markets. (Analysis from 23.10.2024)

https://www.aktiencheck.de/exklusiv/Artikel-DeFi_Technologies_Aktie_Ueberdurchschnittliches_Wachstumspotenzial-17708004

https://seekingalpha.com/news/4195230-defi-technologies-rated-new-buy-at-b-riley-on-growth-potential

$DEFI (-7,16 %) shall be the next $NVDA (+0,68 %) be the next.

-> high risk reward!

DeFi Technologies acquires Stillman Digital to expand its trading capabilities.

$DEFI (-7,16 %)

Acquisition of Stillman Digital: DeFi Technologies has successfully acquired Stillman Digital, a leading provider of digital asset liquidity with over $20 billion in trading volume since 2021, including $5 billion in the second quarter of 2024 alone. Stillman Digital provides digital asset products and services in electronic trade execution, market making and OTC block trading.

https://www.newswire.ca/news-releases/defi-technologies-completes-acquisition-of-leading-digital-asset-liquidity-provider-stillman-digital-863369703.html

Entry into the crypto world.

Even if only indirectly through the asset manager for crypto investments.

Defi Technologies is undoubtedly one of the hottest stocks on the crypto market at the moment. The share is attractive for investors because it allows for very interesting diversification in the market for digital currencies.

Defi sells exchange-traded products for investments in cryptocurrencies, owns an asset management company for crypto investments, holds its own crypto assets and operates an arbitrage trading desk for digital assets. Investors who do not want to be exposed to the price fluctuations and risk of a single cryptocurrency should take a closer look at Defi Technologies shares.

A listing on the Nasdaq would also make the crypto share much more attractive for institutional investors, as the corporate governance standards on the US technology exchange are significantly higher than on other trading venues.

I think the chances of a Nasdaq listing are quite good. Nevertheless, investors should be aware that Defi Technologies is a start-up in a very competitive market. Long-term corporate success is anything but guaranteed.

https://www.sharedeals.de/defi-technologies-aktie-auf-in-den-nasdaq/