July 18 Crypto News – Q3 Profit Boom Sends DeFi Technologies Up 25%

July 18 Crypto News – Strong Q3 Performance Lifts DeFi Technologies 25%

July 18 Crypto News – Canadian fintech firm DeFi Technologies (DEFTF) saw its stock soar over 25% this week, following a robust performance by its crypto trading desk. The company kickstarted July with another round of immense profits, propelling shares to USD $1.64 on Wednesday, up from $1.27 on July 11. Although the share price has since corrected to $1.47 alongside Bitcoin’s price, it remains up 15.4%, outperforming BTC itself.

Impressive Gains from Low-Risk Arbitrage Trades

The bulk of DEFTF’s gains occurred on Tuesday when the company announced it had generated $14.1 million through “low-risk arbitrage trades” at its specialized trading desk, DeFi Alpha, since the start of Q3. This includes $2.9 million in Tether (USDT) and $11.2 million in “digital asset inventory.”

“The company has already generated approximately $105 million in revenue with about $10 million in annual costs, with Q2 revenues yet to be announced,” said Curtis Schlaufman, VP of communications at DeFi Technologies. “This success highlights the effectiveness of our strategic trading operations.” These revenue figures are notably high relative to the company’s total market cap, which stands at $429 million, according to Yahoo Finance.

Valour’s Contribution and Market Expansion

While DeFi Alpha has driven much of DeFi Technologies’ gains this year, Schlaufman emphasized that their core business remains centered around Valour, its asset management subsidiary offering a range of crypto exchange-traded products (ETPs) in Europe. Thanks to more lenient regulations in the region, Valour provides ETPs for various crypto assets unavailable in North American markets, including Solana (SOL), Cardano (ADA), and recently, Near (NEAR). Additionally, Valour stakes the tokens within these funds, yielding stronger profits per deposit compared to U.S. Bitcoin ETFs.

“We have ambitious plans to continue expanding our ETP offerings and to enter new and emerging markets, including the Middle East, Asia, and Africa,” Schlaufman stated. Last month, DeFi Technologies projected earnings of $15 million per quarter from Valour alone after Q1. Despite these forecasts, predicting the entire company’s profits remains challenging: “At the end of Q1, the company had guided $87.45 million in revenue for 2024, which has already been surpassed,” Schlaufman added.

Strengthening Financial Position and Bitcoin Strategy

Leveraging its newfound profits this year, DeFi Technologies has expanded its balance sheet, reduced debt, and repurchased its stock. Notably, the company has joined the ranks of MicroStrategy copycats by making Bitcoin its primary treasury reserve asset, acquiring 110 BTC for $7.6 million. This move led to a surge in DEFTF stock to multi-year highs following the announcement.

“We will continue to add more BTC as appropriate in relation to our Bitcoin treasury strategy,” confirmed Schlaufman.

DeFi Technologies’ recent performance underscores the effectiveness of its strategic trading operations and highlights its potential in the evolving fintech and crypto markets. With ambitious plans for global expansion and continued innovation in crypto asset management, the company is well-positioned for future growth.

FAQ on DeFi Technologies’ Recent Performance and Growth

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