DeFi Technologies Faces Investor Backlash After Drastic Forecast Revision

DeFi Technologies shares are experiencing unprecedented price swings following the November 14 release of third-quarter results. The Canadian fintech firm reported quarterly revenue of $22.5 million with operating income of $9 million, but these figures were overshadowed by a stunning downward revision to the company's full-year outlook.

The company announced significant leadership changes during this period of uncertainty. Founder Johan Wattenström has assumed the roles of both Chief Executive Officer and Executive Chairman, while Olivier Roussy Newton transitions to a strategic advisory position. This management reshuffle comes at a particularly challenging moment for the organization.

Revenue Projection Slashed Nearly in Half

Investors reacted strongly to DeFi Technologies' decision to dramatically reduce its annual revenue forecast. The company now anticipates full-year revenue of approximately $116.6 million, representing a 47% decrease from its previous projection of $218.6 million. Management attributed this substantial revision to delays in arbitrage operations resulting from consolidated digital asset pricing and heightened competitive pressures.

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

Subsidiaries Deliver Mixed Performance

The company's various business units presented contrasting results. Stillman Digital demonstrated robust performance with $6.1 million in revenue over nine months and maintained solid trading margins between 25-50%. Conversely, DeFi Alpha underperformed expectations, completing only two significant transactions during May and November 2025.

Operational Metrics Show Underlying Strength

Despite the disappointing guidance revision, several operational indicators revealed fundamental business strength:

• Valour AUM: Assets under management expanded to $989.1 million, compared to $772.9 million in the preceding quarter
• Quarterly Inflows: Exchange-traded products attracted net inflows of $38.8 million during the quarter
• Year-to-Date Performance: Cumulative inflows reached $116.2 million through the end of September

Market participants now question whether the company's operational foundation can overcome the credibility damage from such a significant forecast reduction. While DeFi Technologies recently secured over $100 million in additional capital, providing financial flexibility, the critical uncertainty remains: when will arbitrage opportunities return to previous levels?