DeFi Technologies, Inc. Annual Report: A Plain-English Guide

I’ve put together this guide to help you understand how DeFi Technologies performed this year. Instead of digging through dense legal filings, we’ll break down what’s actually happening so you can decide if this company fits your portfolio.

1. What does this company do?

DeFi Technologies acts as a bridge between traditional finance and digital assets. They build products that let investors buy crypto through standard brokerage accounts.

Their main engine is the Valour brand, which creates crypto-based products that trade on European exchanges like the Nordic Growth Market. They also run a trading desk, Stillman Digital, to manage their own crypto and provide liquidity for their products. By the end of 2025, Valour managed about $680 million. The fees from these assets are the company’s primary source of steady income.

2. Financial Performance: A Volatile Turnaround

The company swung from a $28.5 million loss in 2024 to a $62.4 million profit in 2025. It is important to look at the composition of these numbers:

• "Paper" Gains: A significant portion of this profit comes from $48.2 million in "unrealized gains." This is an accounting adjustment based on the daily market price of the crypto they hold, rather than realized cash.
• Revenue Reality: While they reported $99.1 million in revenue, this figure is heavily tied to the fluctuating value of their crypto holdings and trading gains. Only about $12.5 million of that total comes from stable, recurring management fees.
• Cash Position: They ended 2025 with $91 million in cash, up from $16 million in 2024. This increase was driven by selling more shares and warrants to investors, which dilutes existing ownership.

3. The Risks: Why This Is a "High-Stakes" Play

Beyond standard business risks, the company faces specific hurdles that could impact your investment:

• The "Locked" Asset Trap: They hold $45 million in digital tokens that cannot be sold for up to three years. These assets are unavailable to cover immediate operational expenses.
• Regulatory & Listing Risks: The company’s share price has remained below $1.00 for 45 days, failing Nasdaq’s minimum requirement. Additionally, they have warned of potential delays in filing reports due to complex audits, which could lead to trading halts.
• Internal Controls: The company reported "material weaknesses" in their financial reporting. Their systems for tracking money have not always been reliable, which increases the risk of accounting errors.
• The "Unsecured" Nature of Products: Valour’s products are essentially unsecured debt. If the company faces financial distress, there is no collateral to protect investors; you are relying entirely on the company’s ability to stay solvent.
• Market Volatility: Their business model is highly sensitive to crypto prices and regulatory environments. If governments increase restrictions on crypto, the company’s costs and operational viability could be negatively impacted.

4. The Fine Print

• The Lawsuit: They face a class-action lawsuit in the U.S. alleging they misled investors about their liquidity and internal controls. They have set aside $2 million for legal costs.
• Tax Warning: For U.S. investors, the company is classified as a "Passive Foreign Investment Company" (PFIC). This means your gains may be taxed at a higher rate than standard capital gains. Consult a tax professional before investing.

Final Thoughts for Investors

Management is currently focused on growing their steady, fee-based income, but they are navigating significant regulatory and exchange-related challenges. This remains a high-risk, high-reward opportunity where the company's long-term success depends as much on their accounting and legal standing as it does on the broader crypto market. Before buying, consider whether you are comfortable with the risks associated with their current internal controls and the potential for share dilution.