DeFi Technologies Faces Investor Backlash After Drastic Forecast Cut and Leadership Shakeup

DeFi Technologies shares are experiencing intense selling pressure following a stunning double blow: a near-halving of its fiscal year 2025 revenue forecast and the immediate departure of its CEO. The one-two punch has sent shockwaves through the investment community, raising serious questions about the company's near-term trajectory.

In response to the escalating situation, the company's board executed an immediate leadership change. Founder Johan Wattenström has assumed the chief executive role and will guide the organization through this turbulent period. His initial recovery strategy focuses on accelerating the rollout of innovative hybrid products that merge traditional and decentralized finance. The plan also includes strategic investments and potential acquisitions aimed at enhancing long-term shareholder value.

Revenue Projection Slashed

The core of today's market dismay stems from a dramatic downward revision of the company's financial outlook. Management has drastically reduced its fiscal 2025 revenue guidance from the original $218.6 million to just $116.6 million—representing a staggering 46% reduction.

Company officials attributed this substantial correction primarily to unexpected delays in its arbitrage operations. The proliferation of digital treasury enterprises has compressed trading margins, they explained, leading to a temporary reduction in arbitrage activity volumes.

Should investors sell immediately? Or is it worth buying DeFi Technologies?

Analyst Community Reacts

Market analysts were quick to respond to the disappointing developments. B. Riley promptly adjusted its full-year 2025 earnings per share estimate downward from $0.28 to $0.19. This revision follows recently disappointing quarterly results where DeFi Technologies reported EPS of just $0.01, significantly missing the consensus estimate of $0.07. Quarterly revenue of $22.53 million also fell well short of the $41.0 million analysts had projected.

Key developments impacting investor sentiment:
* Revenue collapse: Fiscal 2025 forecast nearly cut in half
* Leadership vacuum: CEO Olivier Roussy Newton departs effective immediately
* Earnings shortfall: Quarterly results substantially below expectations
* Strong liquidity position: Company maintains $165.7 million in cash and digital assets despite operational challenges
* Subsidiary performance: Valour division demonstrates robust growth with $989.1 million in assets under management

The company now faces the dual challenge of restoring market confidence while executing its new strategic direction under fresh leadership. Investors will be watching closely for signs of stabilization in the coming quarters.