DeFi Technologies, a Canada-based fintech firm, has reported third-quarter earnings, showcasing resilience in a challenging crypto landscape. With total revenues of C$24.2 million, the company’s performance was bolstered by its DeFi Alpha trading desk, which brought in C$20.6 million, surpassing Benchmark’s C$16 million estimate.
Despite a steep decline from the previous quarter’s revenue of C$111.5 million, analysts noted the consistent success of the firm’s arbitrage strategy, which has not recorded any losses since its inception in April.
Benchmark analyst Mark Palmer highlighted the potential for brighter prospects ahead, emphasizing the favorable conditions emerging post-U.S. elections. “The tailwinds supporting DEFI’s growth became meaningfully stronger after the end of the quarter,” Palmer noted, citing record-breaking token prices, including Bitcoin.
DeFi Technologies also offered full-year 2025 revenue guidance of C$198.6 million, implying a significant Q4 revenue of C$46.2 million, far exceeding earlier estimates of C$26.7 million. Assets under management (AUM) surged by nearly 38% after Q3, reaching C$1.1 billion as of Nov. 13, signaling robust investor interest in DeFi’s offerings.
Innovative Strategies Position DeFi for Expansion
Ahead of its earnings release, DeFi Technologies announced a groundbreaking venture: the launch of CoreFi Strategy. This public company will focus on Core, a Bitcoin staking and decentralized finance (BTCfi) blockchain, drawing parallels to MicroStrategy’s corporate treasury model. CoreFi Strategy aims to accumulate Core tokens and Bitcoin, employing innovative staking and financing strategies to maximize yields.
Palmer underscored Core’s appeal as a Bitcoin-aligned blockchain offering non-custodial staking and dual-staking integration, enabling higher yields for investors who stake both Core tokens and Bitcoin. He also noted DeFi Technologies’ subsidiary, Valour, had earlier launched a yield-bearing Bitcoin exchange-traded product (ETP), providing a 5.65% yield while offering exposure to Bitcoin’s price appreciation.
Analysts Raise Expectations for DeFi Technologies
As DeFi Technologies pivots toward staking and decentralized finance, the firm’s strategic innovations are setting it apart in the competitive crypto ecosystem. Palmer reiterated a high rating on the stock and raised his price target to C$5, reflecting confidence in the company’s long-term growth trajectory.
With a robust earnings report and the introduction of new initiatives like CoreFi Strategy, DeFi Technologies appears well-positioned to capitalize on the evolving cryptocurrency market and investor appetite for high-yield opportunities.
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