DeFi Technologies Inc.

Total 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. Effective management fee yield was approximately 1%, effective staking yield was 2.4%, and Valour generated $22.8 million of net inflows. General and admin expenses plus fees and commissions were $8 million, down from $9.6 million in Q1 2026. The quarter also included $16.3 million of negative mark-to-market adjustments on the venture portfolio and stretch preferred shares, including a markdown of the 5% MetaBank investment. The company ended with $60.3 million in cash and cash equivalents and $119.8 million of total liquidity. Looking ahead, management said the hedge fund launch should occur in Q3, with another 8 ETPs targeted for Q3, and they continue to target annualized cash operating costs of $36 million to $39 million.

Johan Wattenstrom framed the quarter as one where market volatility hurt reported results but did not change the company’s strategy or conviction. He emphasized platform-building, institutional capabilities, product innovation, and disciplined capital allocation, saying the business is becoming more scalable and efficient. His tone was optimistic but measured, with repeated comments that the company is focused on execution and taking market share during the downturn.

Paul Sandor Bozoki focused on the balance sheet, monetization, and cost discipline. He cited $60.3 million in cash and cash equivalents, $19.1 million of stretch preferred shares, $10.4 million of USDT/USDC tokens, and $30 million of digital asset treasury holdings for $119.8 million of total liquidity, and explained that $20 million was moved into MicroStrategy stretch preferreds to earn 12% yield versus about 3.5% on short-term Treasury bills. He also highlighted $8 million of cash operating costs in the quarter, the $36 million to $39 million annualized cash cost target, and said the company believes about $550 million of AUM at 4.25% monetization would be breakeven.

Analysts pressed management on the hedge fund and smart crypto fund timing, the sustainability of inflows, buybacks, Nasdaq compliance, and whether the lower expense run-rate means breakeven could be lower. Management said the hedge fund obstacles are removed and launch could happen within weeks in Q3, while the Swedish FSA issue for the issuer structure remains uncertain, with Luxembourg as an alternative. On buybacks, management said capital is better used for growth and M&A because repurchased shares are retired and would reduce flexibility; they also said Q2 inflows were broad-based, with roughly 40% tied to institutional events and outreach, and that some of the inflow strength included an $11 million Hedera sale.