DeFi Technologies Inc.

Reported Q2 revenue was $7.8 million, down from $11.2 million in the prior period. Average AUM was approximately $471.5 million and quarter-end AUM was approximately $397.2 million, with an effective management fee yield of about 1% versus about 1% in the prior period. Valour’s effective staking yield was 2.4% and Valour produced $22.8 million of net inflows. The company posted $16.3 million of negative mark-to-market adjustments on its venture portfolio and stretch preferred shares. Ending liquidity was $119.8 million, including $60.3 million in cash and cash equivalents, $19.1 million of stretched preferred shares, $10.4 million of USDT/USDC tokens, and $30 million of digital asset treasury holdings. Operating cash costs (G&A plus fees and commissions) were $8 million in the quarter, down from $9.6 million in Q1 2026. Management reiterated a target annualized cash operating cost structure of $36 million to $39 million and said breakeven requires about $550 million of AUM at a 4.25% monetization rate. No next-quarter revenue or EPS guidance was given.

Johan Wattenstrom said the quarter was hurt by digital asset volatility and lower prices, but insisted the long-term thesis is unchanged and that the company is using the downturn to strengthen the platform and take market share. He emphasized product expansion, institutional capabilities, strategic M&A interest, AI initiatives, and a Valour platform beta launch in the second half of the year, framing the company as building a more scalable and diversified business. His tone was confident and opportunistic, repeatedly stressing execution over hype and saying the company will announce products only when they are operational.

Paul Sandor Bozoki focused on the financial impact of lower crypto prices, saying average AUM fell to about $471.5 million and quarter-end AUM to about $397.2 million, while revenue declined to $7.8 million. He explained that the company ended with $119.8 million of total liquidity, and clarified that the drop in cash was partly due to a $20 million purchase of MicroStrategy stretch preferred shares, which management views as a higher-yielding treasury deployment. He also highlighted $8 million of cash operating costs in the quarter, down from $9.6 million in Q1, and reiterated the $36 million to $39 million annualized cash cost target and the approximately $550 million AUM breakeven estimate at 4.25% monetization.

Analysts pressed management on the timing of the smart crypto fund and hedge fund, and Johan said the hedge fund had no remaining formal obstacles and could launch within weeks, while the Swedish FSA issue for the issuer structure remains uncertain and may be solved through Luxembourg if needed. Questions also focused on buybacks, and management said cash is being prioritized for growth, higher-yield treasury uses, and strategic deals rather than retiring shares in a weak market. On inflows, management said Q2 demand was broad-based, with about 40% of inflows tied to institutional events and outreach, and one large Hedera/HBAR sale contributed materially. Analysts also asked about expenses and breakeven; Paul said costs are running leaner, the company is aiming for the low end of the cost target, and a 4.25% monetization assumption remains their current internal budget.