DeFi Technologies (DEFI) Q3 2024 earnings summary

Executive summary

• The company bridges traditional capital markets with decentralized finance and Web3, operating through subsidiaries in ETPs, trading, infrastructure, research, and partnerships.

• Year-to-date net income reached CAD 97.2 million, with a market cap around CAD 90 million and book value at CAD 139.2 million.

• Assets under management (AUM) grew 51.6% since December 2023, reaching CAD 1.1 billion by November 2024.

• Strategic acquisitions, including Stillman Digital, and partnerships with firms like Bitcoin Suisse and Hive, have expanded product offerings and geographic reach.

• The company is pursuing uplisting to a major U.S. exchange, having filed Form 40-F with the SEC for a Nasdaq listing.

Financial highlights

• Net income for Q3 2024 was CAD 24.9 million; nine-month net income was CAD 97.2 million.

• EBITDA for Q3 2024 was CAD 26.2 million; nine-month EBITDA was CAD 102.3 million.

• Total revenues for Q3 2024 were CAD 24.2 million; nine-month revenues were CAD 152.4 million, up sharply from CAD 6 million and CAD 2 million in 2023.

• Cash and USDT balance rose to CAD 25.4 million as of September 30, 2024, from CAD 6.8 million at year-end 2023.

• Total value of cash, treasury, and venture portfolio was CAD 106.8 million as of September 30, 2024.

Outlook and guidance

• 2024 revenue guidance revised to CAD 198.6 million, reflecting strong AUM growth, new ETP launches, and acquisitions.

• Targeting 40 ETPs by year-end 2024 and 100 by 2025, with expansion into North Africa, Asia, and the Middle East.

• Anticipates significant revenue upside from international expansion and new product launches, especially in Africa and the Middle East.

• DeFi Alpha strategy and Stillman Digital integration expected to further boost revenues and trading capabilities.

• Stillman Digital projected to generate CAD 9.3 million in 2024 revenue at a 50% net margin.