Are you ready to explore the dynamic world of decentralized finance where DeFi Technologies not only navigates but also shapes the future of digital assets? With an astonishing 133% year-over-year increase in assets under management and the rollout of 20 new ETPs, could this be the moment to redefine your financial landscape? From pioneering AI-driven investment strategies to expanding its portfolio to over 60 exchange-traded products, how might DeFi Technologies lead you to new investment frontiers? This newsletter will take you through the strategic innovations, leadership transitions, and the visionary roadmap that could position DeFi Technologies at the heart of your investment strategy.

Today’s episode - Visionary

• Please support our sponsor. They provide valuable information for you and me. 

• If you enjoy this newsletter, please consider sharing it with your friends and business contacts by clicking the button below. ⬇️ 

  Share the newsletter

🌟 Don't Miss Out on Future Gains! 🌟

🚀 Unlock the Secrets to Effortless Investing with Our Smart Portfolios 🚀

For a limited time, grab our "Fast Track to Build a Winning Portfolio Blueprint" at a 50% discount!

Here's what's waiting for you:

• 📈 Step-by-Step Guide: Start Investing in Minutes with Our Chosen Online Broker

• 🔍 Expert Insights: Uncover the Strategies Behind Our Recommended Smart Portfolios

• 💼 Easy Diversification: Gain Exposure to a Wide Range of Assets with Just a Few Clicks

• 💰 Long-Term Growth Potential: Build a Portfolio for Consistent Returns Over Time.

Start Building Your Winning Portfolio Today! 🌟

Today, you can get the list of stocks from Cyber Tech Portfolio for FREE! ⬇️

💸 Paying the bills

Our newsletter is powered by beehiiv, which partners with trustworthy and high-quality advertisers. When you click, not only do you have the opportunity to benefit from the ads, but you also help support our efforts to improve our newsletter for you as our readers or listeners.

Please support our partners.

📈Navigating the Future of Digital Finance with DeFi Technologies

The digital finance revolution is accelerating, and DeFi Technologies is making waves in this transformative space. With innovative strategies, strong financial performance, and a focus on expanding access to decentralized finance, DeFi Technologies is carving a unique position in the market. Here’s an in-depth look at its recent achievements, strategies, and milestones as it closes 2024 on a high note.

Record Growth Amid Market Challenges

Despite a volatile month for digital asset prices, Valour, a subsidiary of DeFi Technologies, achieved significant milestones in December 2024. Assets under management (AUM) reached C$1.18 billion (US$819 million), marking a stellar 133% growth year-over-year. While AUM dipped 11% compared to the previous month due to market fluctuations, the company posted record net inflows of C$56 million (US$38.8 million) during December.

These inflows reflect strong investor confidence, bolstered by the successful launch of 20 new digital asset exchange-traded products (ETPs). With a portfolio now exceeding 60 ETPs across European exchanges, Valour continues to democratize access to blockchain technologies, positioning itself as a leader in the sector.

Top Performers and Investor Favorites

Valour’s offerings, including both established and newly launched ETPs, have attracted significant investor interest. Key contributors to December’s record inflows include:

• SUI (C$22.4M/US$15.5M)

• XRP (C$7.6M/US$5.2M)

• DOGE (C$5.9M/US$4.1M)

• APT (C$5.8M/US$4.0M)

In terms of AUM, leading ETPs include:

• Solana (C$425.4M/US$294.4M)

• Bitcoin (C$317.9M/US$220.0M)

• Ethereum (C$95.8M/US$66.3M)

• Cardano (C$82.5M/US$57.1M)

This diversity reflects Valour’s ability to cater to a wide range of investor interests, from blue-chip cryptocurrencies like Bitcoin and Ethereum to emerging assets such as SUI and DOGE.

Strategic Growth and Financial Strength

DeFi Technologies continues to reinforce its financial foundation. As of December 31, 2024, the company reported a cash and USDT balance of approximately C$22 million (US$15.2 million), a 25.6% increase from the prior month. Loans payable remained steady at C$8.3 million (US$6 million).

The company’s digital asset treasury—comprising Bitcoin, Ethereum, Cardano, Polkadot, and more—was valued at approximately C$58.9 million (US$40.7 million). Although this represented a 16% decline due to asset price depreciation, the diversified portfolio underscores DeFi Technologies’ prudent risk management approach.

Leveraging Arbitrage and AI-Driven Investments

DeFi Technologies’ DeFi Alpha strategy has proven to be a powerful revenue generator, yielding C$111.5 million (US$82.0 million) in Q2 2024 and C$20.6 million (US$14.7 million) in Q3, all with zero losses to date. This approach not only strengthens the company’s financial position but also provides resources for debt repayment and treasury expansion.

Further diversifying its growth strategies, DeFi Technologies announced a strategic investment in Neuronomics AG, a Swiss asset management firm specializing in AI-driven quantitative trading. By acquiring a 10% stake, the company gains access to advanced AI strategies that complement its DeFi Alpha trading desk. This move signals DeFi Technologies’ commitment to innovation and long-term value creation.

Expanding Access with ETP Innovationc

The launch of 20 new ETPs on the Spotlight Stock Market in December marked a historic milestone for Valour. This rollout—the largest in its history—expanded the company’s portfolio to over 60 ETPs. These offerings provide secure, regulated access to a variety of digital assets, making it easier for investors to participate in the decentralized finance ecosystem.

Notable among the new products is the Hedera HBAR ETP, launched on Euronext Amsterdam. Hedera’s energy-efficient Proof-of-Stake network, governed by global enterprises such as Google, IBM, and Deutsche Telekom, is a top 20 cryptocurrency by market capitalization. This ETP offers broader accessibility for institutional and retail investors alike, reflecting Valour’s dedication to bridging traditional finance with blockchain innovation.

Leadership Changes to Drive Growth

In December, DeFi Technologies welcomed Paul Bozoki as its new Chief Financial Officer. With nearly 30 years of experience across accounting, tax, and capital markets, Bozoki brings a wealth of expertise to the company. His track record of managing cross-listed public companies and leading financial strategies across industries positions DeFi Technologies for continued growth.

Bozoki’s appointment follows the retirement of Ryan Ptolemy, who served as CFO since 2009. Ptolemy’s contributions have been instrumental in shaping the company’s financial trajectory, and his continued support during the transition ensures stability as DeFi Technologies enters its next chapter.

Why Picks-and-Shovels Win

The term “picks and shovels” originates from the California Gold Rush, where fortunes were often made not by prospectors but by those supplying their tools. In the 2000s, Cisco Systems and Ciena provided the infrastructure for the internet, while Nvidia and Palantir became foundational to artificial intelligence.

In cryptocurrency, the direct risk of buying Bitcoin or Ethereum often proves too high for traditional investors. ETFs have stepped in as a safer avenue, yet these funds remain tied to volatile markets. Here’s where DeFi Technologies flips the script: it offers investors exposure to the crypto ecosystem without betting the farm on any one coin.

DeFi Technologies: A Market Standout

DeFi Technologies embodies the picks-and-shovels approach in the crypto-finance sector. With a nearly $1 billion market cap, its diverse business model spans several high-potential segments, including infrastructure, research, market making, asset management, venture capital, and arbitrage trading. Its most valuable asset? A profitable and fast-growing exchange-traded product (ETP) business.

In Europe, DeFi’s subsidiary, Valour, manages over 60 ETPs—a European counterpart to ETFs—offering exposure to cryptocurrencies without the speculative risk of direct ownership. Valour has seen consistent growth in assets under management (AUM), surging from $106 million in 2022 to over $920 million by late 2024. That’s nearly $1 billion in less than two years, a feat unmatched in the industry.

Unrivaled Profitability

What sets DeFi Technologies apart from many cryptocurrency ventures is its profitability. The company has achieved positive cash flow, robust earnings, and a solid balance sheet—traits not often associated with the crypto space.

The revenue model is straightforward and lucrative. DeFi earns fees of 8-10% on AUM through Valour, translating to $80 million to $100 million in annual revenue if AUM remains stable—though history suggests continued growth is more likely. The arbitrage trading desk adds another layer of consistent income, generating $97.5 million in 2024 with zero reported losses.

Low-Risk Growth with Global Expansion

DeFi’s growth trajectory isn’t confined to Europe. With plans to launch 40 new ETPs and expand operations into Singapore, Africa, and the UAE, the company is on track to double its AUM by 2025. At an average cost of just $50,000 to launch an ETP, the barrier to entry remains low, while profitability kicks in at only $675,000 in AUM per product.

This scalable approach minimizes risk while maximizing potential. Unlike competitors such as Robinhood or Coinbase, which face stiff regulatory scrutiny and fluctuating retail demand, DeFi operates in a lean, capital-efficient manner.

The Numbers Don’t Lie

DeFi Technologies enters 2025 with projected revenues of $141.5 million and net income of $71.4 million. That equates to earnings per share above $0.30 and a trailing price-to-earnings ratio of under 9—a valuation that’s hard to ignore.

Additionally, the company’s balance sheet is a fortress. With $12 million in cash and equivalents, $48.5 million in digital assets, and only $6 million in debt, DeFi boasts net liquid assets of $54 million. This financial strength provides flexibility for strategic acquisitions or reinvestment into high-growth areas.

Asymmetric Opportunity

For investors, DeFi Technologies represents an asymmetric opportunity—a chance to gain exposure to a booming industry while avoiding the pitfalls of direct cryptocurrency speculation. Its blend of strong fundamentals, consistent profitability, and growth potential positions it as a compelling choice for 2025.

While market sentiment and macroeconomic conditions remain unpredictable, DeFi has demonstrated resilience even during crypto bear markets. This stability, combined with its expansion into under-tapped markets, makes it a standout in the small-cap space.

Key Takeaways for Investors

DeFi Technologies is more than a company—it’s a gateway to the future of finance. With record-breaking inflows, a robust financial position, and a commitment to innovation, the company continues to outperform expectations.

For investors navigating the complexities of digital finance, DeFi Technologies provides a clear path to opportunity. Its diversified strategies, strong leadership, and focus on democratizing access make it a standout player in an industry poised for exponential growth.

This is the time to stay informed, stay focused, and stay ahead. The future of finance is here, and DeFi Technologies is leading the charge.

Want More Investing Tips?

We’re here to guide you through every step of your investing journey!

We can also help you BUILD a WINNING PORTFOLIO in just 10 MINUTES! We will provide a step-by-step guide to effortless investing in the stock market on autopilot. Copy the portfolio and grow your wealth. Get our FREE Portfolio by joining our newsletter. You can also get regular updates, tips, and exclusive content on making the most of your investments and building lasting wealth!

Subscribe Now to Receive More Investing Tips!

Thank you for reading, and remember: Investing today is the key to your financial freedom today and tomorrow. Let’s build wealth, one step at a time! 🚀

Are you new here?

That’s it for this episode!

Thank you so much for reading today’s email! Your support is the only way I can write this email for free daily.

Kindly give us feedback in the poll below and share the newsletter with other investors if you find it valuable!

Disclaimer: This newsletter is for informational purposes only and should not be considered financial advice. Please consult with a financial advisor before making any investment decisions.