Release Date: November 15, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- DeFi Technologies Inc (DEFTF, Financial) reported a significant increase in assets under management, reaching $1.1 billion CAD as of a recent date.
- The company has a diversified revenue model with exposure to blockchain-based assets and services, contributing to a strong balance sheet.
- DeFi Technologies Inc (DEFTF) has successfully eliminated all outstanding debt, significantly improving its financial position.
- 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.
- 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
- 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.
- DeFi Technologies Inc (DEFTF) faces challenges with predatory algorithms and shorting in the Canadian market, impacting stock performance.
- 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.
- The company's valuation is currently low, which may affect its ability to use shares for acquisitions without significant dilution.
- 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 company’s 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.
Q: Will future acquisitions be paid with share dilution?
A: Russell stated that they will avoid using shares for acquisitions unless it is at a lower multiple than their current trading valuation, ensuring any acquisition is accretive.
Q: How can you guarantee Dhi Alpha will stay profitable as more players enter the game over time?
A: Johann, a company executive, explained that Dhi Alpha focuses on unique opportunities and partnerships that are not easily accessible to competitors, ensuring continued profitability.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
