In This Article:
Release Date: November 15, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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DeFi Technologies Inc (DEFTF) reported a significant increase in assets under management, reaching $1.1 billion CAD as of a recent date.
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The company has a diversified revenue model with exposure to blockchain-based assets and services, contributing to a strong balance sheet.
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DeFi Technologies Inc (DEFTF) has successfully eliminated all outstanding debt, significantly improving its financial position.
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The company is actively expanding its product offerings, planning to launch 23 new products by the end of the year, with a focus on unique, first-mover advantage products.
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DeFi Technologies Inc (DEFTF) is pursuing international expansion, targeting new markets in North Africa, Asia, and the Middle East, which could significantly boost revenue.
Negative Points
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The company's cash flow statements may appear negative due to regulatory treatment of crypto assets, which are not considered liquid assets despite their convertibility.
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DeFi Technologies Inc (DEFTF) faces challenges with predatory algorithms and shorting in the Canadian market, impacting stock performance.
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There is uncertainty regarding the timing and success of the company's planned uplisting to a major US exchange, which is dependent on regulatory changes.
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The company's valuation is currently low, which may affect its ability to use shares for acquisitions without significant dilution.
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DeFi Technologies Inc (DEFTF) operates in a highly competitive and rapidly changing digital asset market, which could impact future profitability and growth.
Q & A Highlights
Q: Where is the $14 million in Alpha trading profits in the income statement? A: Ryan, CFO, explained that it shows up in the digital assets line item called realized gains or losses on digital assets, embedded in the $51 million for the quarter.
Q: This quarter had $22 million in exchange gains. What's the source and nature of the occurrence? A: Ryan, CFO, clarified that these gains are due to foreign currency fluctuations, particularly with the Swedish Krona against the US dollar, which positively impacted the companys financials.
Q: Has DeFi made inroads with institutional investors in the last six months? A: Russell, a company executive, confirmed that they have been penetrating the institutional market, despite challenges in the Canadian market, and are optimistic about future uplisting to a major US exchange.