Q1 2026 DeFi Technologies Inc Earnings Call

Speaker #1: You have joined the meeting as an attendee and will be muted throughout the meeting.

Curtis Schlaufman: Some folks, about 30 seconds here to filter in, and then we'll get started. In the meantime, I'll just go ahead and do the opening remarks and read the disclaimer. Everyone welcome to the DeFi Technologies First Quarter 2026 Financial Review and Shareholder Call. I'm Curtis Schlaufman, VP of Marketing Communications. Joining me on the call today, our Chief Executive Officer Johan Wattenström, Chief Financial Officer Paul Bozoki, and President Andrew Forson. We'll begin with opening remarks from Johan, followed by a review of our Q1 2026 financial results from Paul, and then an update on growth initiatives and strategic priorities from Andrew. After that, we'll open the line for Q&A. For investors, you can enter questions in the chat.

Speaker #2: Some folks about 30 seconds here to filter in, and then we'll get started. In the meantime, I'll just go ahead and do the opening remarks and read the disclaimer.

Speaker #2: Everyone, welcome. To the Defi Technologies first quarter, 2026 financial review and shareholder call. I'm Kurdish Lofman, VP of Marketing and Communications. Joining me on the call today are Chief Executive Officer Johan Wattenstrom, Chief Financial Officer Paul Bezoki, and President Andrew Forrester.

Speaker #2: We'll begin with opening remarks from Johan, followed by a review of our first quarter 2026 financial results. From Paul, and then an update on growth initiatives and strategic priorities from Andrew.

Speaker #2: After that, we'll open the line for Q&A. For investors, you can enter questions into the chat. I'll get those to those throughout the presentation.

Curtis Schlaufman: I'll get those to those throughout the presentation. Then I'll answer some of those live. Then we'll bring on our coverage analysts on to ask questions live. Before we begin, I'd like to remind everyone that certain statements made during today's call may constitute forward-looking information under applicable securities laws. These statements include but are not limited to comments regarding expected financial performance, business development, strategic initiatives, market expansion, product growth, and future opportunities. Forward-looking statements are based on management's current expectations and assumptions and are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied. With that, I'll turn it over to Johan.

Speaker #2: And then I'll answer some of those live and then we'll bring on our coverage analysts on to ask questions live. Before we begin, I'd like to remind everyone that certain statements made during today's call may constitute forward-looking information under applicable securities laws.

Speaker #2: These statements include, but are not limited to, comments regarding the expected financial performance, business development, strategic initiatives, market expansion, product growth, and future opportunities.

Speaker #2: Forward-looking statements are based on management's current expectations and assumptions and are subject to known and unknown risks and uncertainties. That could cause actual results to differ materially from those expressed or implied.

Speaker #2: With that, I'll turn it over to Johan.

Speaker #3: Thank you, Kurdish. And thank you, everyone, for joining us today. The first quarter of 2026 reflected on more challenging market environment across digital asset sector, with softer market conditions impacting assets under management, staking-related income, and overall investor activity during the period.

Johan Wattenström: Thank you, Curtis, thank you everyone for joining us today. The Q1 of 2026 reflected a more challenging market environment across digital asset sector, with softer market conditions impacting assets under management, staking related income, and overall investor activity during the period. At the same time, we believe the quarter reinforced the strength and durability of the business we have built. Even in what we view as the most challenging quarter of this recent crypto market downturn, with asset prices reaching their lowest during the period, DeFi Technologies generated revenue of CAD 11.2 million and positive net income of CAD 4.9 million, while further strengthening the balance sheet through a significant improvement in working capital. More broadly, the quarter demonstrated the resilience of our business model and the discipline of our operating approach.

Speaker #3: At the same time, we believe the quarter reinforced the strengths and durability of the business we have built. Even in what we view as the most challenging quarter of this recent crypto market downturn, with asset prices reaching their lows during the period, DeFi Technologies generated revenue of $11.2 million and positive net income of $4.9 million.

Speaker #3: While further strengthening the balance sheet threw a significant improvement in working capital. More broadly, the quarter demonstrated the resilience of our business model and the discipline of our operating approach.

Speaker #3: We navigated a difficult market environment while continuing to manage costs carefully, support our product platform, and advance several important long-term growth initiatives. Average AUM during the quarter was approximately $533 million.

Johan Wattenström: We navigated a difficult market environment while continuing to manage costs carefully, support a product platform, and advance several important long-term growth initiatives. Average AUM during the quarter was approximately CAD 533 million, with flow levels through the period reaching approximately CAD 427 million. While lower than prior periods, these levels are broadly consistent with market conditions and visible through our publicly reported AUM disclosures. Importantly, our model continues to demonstrate durability even during weaker market conditions. Our management fee profile remained relatively stable, and our diversified monetization approach across management fees, staking activities, and trading infrastructure and institutional initiatives continue to differentiate the platform. Across the business, we have demonstrated that DeFi Technologies is not reliant on any single product, revenue stream, or market environment.

Speaker #3: With true levels through the period reaching approximately $427 million. While lower than prior periods, these levels were broadly consistent with market conditions and visible through our publicly reported AUM disclosures.

Speaker #3: Importantly, our model continues to demonstrate durability even during weaker market conditions. Our management fee profile remained relatively stable, and our diversified monetization approach across management fees, staking activities, and trading infrastructure and institutional initiatives continues to differentiate the platform.

Speaker #3: Across the business, we have demonstrated that DeFi Technologies is not reliant on any single product, revenue stream, or market environment. Our platform continues to benefit from multiple pathways for growth across asset management, trading, and capital markets infrastructure, and we believe the company has never been in a better position to capitalize on the convergence of decentralized finance and traditional capital markets.

Johan Wattenström: Our platform continues to benefit from multiple pathways for growth across asset management, trading, and capital markets infrastructure. We believe the company has never been better positioned to capitalize on the convergence of decentralized finance and traditional capital markets. At the center of the group remains Valour. Today, the platform includes 100 free listed products across multiple exchanges globally. We continue to believe the breadth of the platform, combined with our ability to monetize AUM across multiple activities, differentiates us in the market. We also strengthened our commercial leadership during the quarter with the appointment of Jakob Lindberg as Chief Revenue Officer. Jakob is focused on expanding distribution, deepening institutional relationships, and accelerating revenue opportunities across our product platform. We believe this addition strengthens our ability to scale institutional engagement globally.

Speaker #3: At the center of the group remains VALOR. Today, the platform includes 103 listed products across multiple exchanges globally. We continue to believe the breadth of the platform, combined with our ability to monetize AUM across multiple activities, differentiates us in the market.

Speaker #3: We also strengthened our commercial leadership during the quarter. With the appointment of Jakob Lindberg as Chief Revenue Officer, Jakob is focused on expanding institutional relationships, and accelerating revenue opportunities.

Speaker #3: Across our product platform, we believe this addition strengthens our ability to scale institutional engagement globally. In addition, we continue to advance our institutional product initiatives, including our usage platform efforts and our hedge fund efforts.

Johan Wattenström: In addition, we continue to advance our institutional product initiatives, including our UCITS platform efforts, our hedge fund efforts, which we believe represents an important long-term opportunity to broaden access to regulated digital asset investment products across global fund platforms and institutional allocators. As we move through 2026, we remain focused on expanding institutional product structures and other regulated vehicles while continuing to invest in the products and rails that support the future of digital asset investing. We also continue to see opportunities to increase monetization across the platform, particularly through the trading, hedging, and market-making infrastructure embedded across Valour's issuing stack, which supports our ability to earn additional income on AUM more efficiently.

Speaker #3: Which we believe represent an important long-term opportunity to broaden access to regulated digital assets investment products, across global fund platforms and institutional allocators. As we move through 2026, we remain focused on expanding institutional product structures and other regulated vehicles.

Speaker #3: While continuing to invest in the products and rails that support the future of digital asset investing, we also continue to see opportunities to increase monetization across the platform, particularly through the trading, hedging, and market making infrastructure embedded across VALOR's issuance stack.

Speaker #3: We support our ability to earn additional income on AUM more efficiently. From a financial standpoint, we ended the quarter with more than $103 million in combined cash and USDT/USDC.

Johan Wattenström: From a financial standpoint, we ended Q1 with more than CAD 103 million in combined cash and USDT, USDC, approximately CAD 23.5 million in treasury holdings, and a venture and private portfolio valued at CAD 29.1 million. For total cash, treasury, and venture portfolio value of approximately CAD 156 million. We also ended Q1 with working capital of +CAD 47.3 million, a significant improvement from year-end 2025. That fortress balance sheet gives us the ability to be proactive rather than reactionary and to deploy capital deliberately into growth initiatives, strategic infrastructure, and potential acquisitions that deepens our capabilities and strengthens long-term earnings power. Overall, while Q1 was a softer quarter from a market standpoint, we believe the business remains well-positioned operationally and financially with strong cost discipline, a resilient platform, and multiple long-term growth initiatives underway.

Speaker #3: Approximately $23.5 million in treasury holdings, and a venture and private portfolio valued at $29.1 million. For a total cash, treasury, and venture portfolio value of approximately $156 million.

Speaker #3: We also ended the quarter with positive working capital of $47.3 million, a significant improvement from year-end 2025. That fortress balance sheet gives us the ability to be proactive rather than a reactionary and to deploy capital deliberately into growth initiatives, strategic infrastructure, and potential acquisitions that deepens our capabilities and strengthens long-term earnings power.

Speaker #3: Overall, while Q1 was a soft quarter from a market standpoint, we believe the business remains well positioned operationally and financially, with strong cost discipline and a resilient platform, and multiple long-term growth initiatives underway.

Speaker #3: We are increasingly encouraged by improving market conditions as we move through 2026. Which we believe would create a more favorable backdrop for the AUM growth, stronger ETP demand, and revenue acceleration through the remainder of the year.

Johan Wattenström: We are increasingly encouraged by improving market conditions as we move through 2026, which we believe would create a more favorable backdrop for the AUM growth, stronger ETP demand, and revenue acceleration through the remainder of the year. We are already beginning to see early signs of that in the business, with AUM now about CAD 530 million, and April 2026 net inflows of CAD 14.6 million, representing the second strongest monthly inflow in the last 12 months after September 2025 inflows of CAD 22.6 million, following a Q1 period in which flows were relatively flat. With a proven business model, expanding monetization, and the financial flexibility to operate from a position of strength, we believe DeFi Technologies is exceptionally well-positioned for the quarters ahead. With that, I'll turn over to Paul to walk through the financial results.

Speaker #3: We are already beginning to see early signs of that in the business, with AUM now about $530 million and April 2026 net inflows of $14.6 million, representing the second strongest monthly inflow in the last 12 months after September 2025 inflows of $22.6 million.

Speaker #3: Following a Q1 period in which flows were relatively flat, with a proven business model, expanding monetization, and the financial flexibility to operate from a position of strength, we believe DeFi Technologies is exceptionally well positioned for the quarters ahead.

Speaker #3: With that, I'll turn it over to Paul to walk through the financial results.

Speaker #4: Thank you, Johan, and good morning, everyone. I'll begin with an overview of assets under management. Average AUM for the period was approximately $533 million.

Paul Bozoki: Thank you, Johan. Good morning, everyone. I'll begin with an overview of assets under management. Average AUM for the period was approximately CAD 533 million. At the low point during the quarter, AUM was CAD 427 million. While market conditions were challenging, these levels remained within a manageable range for the business and were consistent with the market environment investors experienced across the broader digital asset sector. Our effective management fee yield was approximately 1% for the quarter, compared to approximately 1.2% in prior periods, primarily due to the larger relative weighting of Bitcoin-related products, which carry lower or no management fees following the sharp decline in altcoin prices. Within Valour, our effective staking yield declined to 2.5% due to the significant price declines in the altcoins, which pay higher effective yields to Bitcoin.

Speaker #4: At the low point during the quarter, AUM was $427 million. While market conditions were challenging, these levels remained within a manageable range for the environment investors experienced across the broader digital asset sector.

Speaker #4: Our effective management fee yield was approximately 1% for the quarter, compared to approximately 1.2% in prior periods. Primarily due to the larger relative weighting of Bitcoin-related products, which carry lower or no management fees, following the sharp decline in altcoin prices.

Speaker #4: Within VALOR, our effective staking yield declined to 2.5% due to the significant price declines in the altcoins, which pay higher effective yields to Bitcoin.

Speaker #4: Compression in Bitcoin and Ethereum lending rates, combined with lower effective staking of the AUM, give substantial market volatility. And the unstaked, during Q1, of previously locked Solana coins that became unlocked and distributed from our equity investments directly to VALOR on April 3rd.

Paul Bozoki: Compression in Bitcoin and Ethereum lending rates, combined with lower effective staking of the AUM, given substantial market volatility, and the unstaked during Q1 of previously locked Solana coins that became unlocked and distributed from our equity investments directly to Valour on 3 April. Notwithstanding the lower monetization of 3.5% of our AUM, total revenues for Q1 came in at CAD 11.2 million, which is greater than the CAD 9.7 million in operating general expenses in fees and commissions, our primary cash costs, reflecting the cost discipline efforts to maintain positive core operations through the challenging crypto market conditions of Q1.

Speaker #4: Notwithstanding the lower monetization of 3.5% of our AUM, total revenues for Q1 came in at $11.2 million, which is greater than the $9.7 million in operating general expenses and fees and commissions—our primary cash costs—reflecting the cost discipline efforts to maintain positive core operations through the challenging crypto market conditions of Q1.

Speaker #4: The company continued to maintain its balance sheet strength with $87.6 million in cash and $13.1 million of USDT/USDC. For a total of $100.7 million of cash in USDT/USDC on hand at March 31st, 2026.

Paul Bozoki: The company continued to maintain its balance sheet strength with CAD 87.6 million in cash and CAD 13.1 million of USDT, USDC, for a total of CAD 100.7 million of cash in USDT, USDC on hand at 31 March 2026. Turning to product activity, we ended the quarter with 102 ETPs and structured products across our platform. During the period, we continued expanding our higher value offerings, including the leveraged bull and bear ETPs introduced in late 2025. We also continued expanding geographic distribution through cross-listings in markets such as London and Brazil.

Speaker #4: Turning to product activity, we ended the quarter with 102 ETPs and structured products across our platform. During the period, we continued expanding our higher value offerings, including the leveraged bull and bear ETPs introduced in late 2025.

Speaker #4: We also continued expanding geographic distribution through cross-listings in markets such as London and Brazil. In terms of ETP flows, they remained relatively resilient during the quarter, with a small $0.7 million outflow given the challenging cryptocurrency price environment, which saw Bitcoin reach a low of $60,000 per token.

Paul Bozoki: In terms of ETP flows, they remained relatively resilient during the quarter with a small CAD 0.7 million outflow, given the challenging cryptocurrency price environment which saw Bitcoin reach a low of CAD 60,000 per token. Stillman Digital continue to perform well during the quarter and remains an important diversification component of our broader platform. Stillman generated approximately CAD 2.9 million in revenue during the quarter, an increase in 38% from Q1 2020 actual revenue of CAD 2.1 million, and is thus far on track to meet or exceed its planned 15% to 20% year-over-year growth. Turning to operating expenses, our Q1 actual operating, general and admin expenses and fees and commissions came in at CAD 9.7 million, which on an annualized basis is CAD 38.7 million, or slightly in excess of the CAD 36 million target we set for ourselves.

Speaker #4: Stillman Digital continued to perform well during the quarter and remains an important diversification component of our broader platform. Stillman generated approximately $2.9 million in revenue during the quarter and increased from 38% from Q1 2025 actual revenue of $2.1 million and has thus far on track to meet or exceed its planned $15 to 20% year-over-year growth.

Speaker #4: Turning to operating expenses, our Q1 actual operating, general and admin expenses, and fees and commissions came in at $9.7 million, which on an annualized basis is $38.7 million, or slightly in excess of the $36 million target we set for ourselves.

Speaker #4: Management will continue to strive to keep core operating costs at levels that maintain cash positive core operations. Based on our current cost structure and monetization profile, we continue to believe the business remains positioned to achieve profitability during fiscal year 2026.

Paul Bozoki: Management will continue to strive to keep core operating costs at levels that maintain cash positive core operations. Based on our current cost structure and monetization profile, we continue to believe the business remains positioned to achieve profitability during fiscal year 2026. With that, I'll turn it over to Andrew.

Speaker #4: With that, I'll turn it over to Andrew.

Speaker #3: Thank you, Paul. As we discussed last quarter, our focus remains on building the distribution relationships and operational infrastructure required to support broader institutional adoption of our products across global markets.

Andrew Forson: Thank you, Paul. As we discussed last quarter, our focus remains on building the distribution relationships and operational infrastructure required to support broader institutional adoption of our products across global markets. This process is ongoing, and in Q1, we continued expanding our distribution and onboarding efforts across Europe, Latin America, and Asia, following our launches in markets such as London and Brazil in late 2025. We continue to see these markets as important building blocks in expanding the global reach of the platform and strengthening access to new pools of investor demand. Our capital markets distribution work also continues to be executed with an eye towards supporting future UCITS distribution. We believe UCITS and other innovative fund strategies, as provided by our portfolio company, Neuronomics, remain an important opportunity to broaden access to our products through traditional fund platforms and institutional allocation channels.

Speaker #3: This process is ongoing. And in Q1, we continue to expand our distribution and onboarding efforts across Europe, Latin America, and Asia, following our launches in markets such as London and Brazil in late 2025.

Speaker #3: We continue to see these markets as important building blocks in expanding the global reach of the platform and strengthening access to new pools of investor demand.

Speaker #3: Our capital markets distribution work also continues to be executed with an eye toward supporting future usage distribution. We believe usage and other innovative fund strategies, as provided by our portfolio company Neuronomics, remain an important opportunity to broaden access to our products through traditional fund platforms and institutional allocation channels.

Speaker #3: The beautiful thing about the usage CCAV structures we have been working on are their appeal to, and accessibility by, large institutional capital allocators worldwide.

Andrew Forson: The beautiful thing about the UCITS SICAV structures we have been working on are their appeal to and accessibility by large institutional capital allocators worldwide. Progress on that front remains an important strategic priority. We continue to position the business to meet the operational, regulatory, and distribution requirements needed to support broader institutional participation over time. We have repositioned our Global Insight Symposia as the DeFi Technologies Capital Markets Series in order to bring targeted visibility to our full range of investment products and OTC prime brokerage services via Stillman Digital to institutional investors globally. The first in our Capital Markets Series is our institutional investor event being conducted at the Canadian Embassy in London in collaboration with the Canada-United Kingdom Chamber of Commerce in June. We've also proven our ability to onboard assets into our existing ETPs through our institutional outreach programs.

Speaker #3: Progress on that front remains an important strategic priority, and we continue to position the business to meet the operational, regulatory, and distribution requirements needed to support broader institutional participation over time.

Speaker #3: We have repositioned our global insights symposia as the DeFi technologies capital market series in order to bring targeted visibility to our full range of investment products and OTC prime brokerage services via Stillman Digital, to institutional investors globally.

Speaker #3: The first in our capital market series is our institutional investor event being conducted at the Canadian Embassy in London, in collaboration with the Canada-UK Chamber of Commerce, in June.

Speaker #3: We've also proven our ability to onboard assets into our existing ETPs through our institutional outreach programs. One such institutional allocation into our VALOR ETP with highlighted in a press release and is reflected in these Q1 2026 financials.

Andrew Forson: One such institutional allocation into our Valour ETP was highlighted in a press release and is reflected in these Q1 2026 financials. The other tranche of investment will appear in Q2 financials. This shows a resilient flexibility to the underlying DeFi Technologies business model, even in poor macroeconomic market conditions. We continue to build out the business intelligence infrastructure first referenced last quarter, including the launch and continued development of tools such as our DEFT Valour Investment Opportunity Index, or DVIO. These systems are designed to provide more granular visibility into product consumption, regional demand trends, inflows, and competitive positioning across markets. This information helps us improve product targeting, identify areas where institutional demand may be developing, and better position both existing and future products across our distribution network.

Speaker #3: The other tranche of investment will appear in Q2 financials. This shows a resilient flexibility to the underlying DeFi technologies business model even in poor macroeconomic market conditions.

Speaker #3: We continue to build out the business intelligence infrastructure first referenced last quarter, including the launch and continued development of tools such as our DeFi VALOR Investment Opportunity Index, or DVIO.

Speaker #3: These systems are designed to provide more granular visibility into product consumption regional demand trends, inflows, and competitive positioning across markets. This information helps us improve product targeting, identify areas where institutional demand may be developing, and better position both existing and future products across our distribution network.

Speaker #3: The Deft View Index and the analysis-based visibility it provides were critical to our ability to close the investments into our ETPs. Just this week, we released an improved index calculation engine, which updates daily.

Andrew Forson: The DVIO Index and the analysis-based visibility it provides was critical to our ability to close the investments into our T- ETPs. Just this week, we released an improved index calculation engine which updates daily. This lays the groundwork for our ability to create innovative instruments based on our Valour ETP platform. Other innovations that have made considerable progress in Q1 include the work we've done to restructure our venture capital portfolio to bring more value to DeFi Technologies shareholders, as well as the continued development of the in-house digital asset custody technology. We spent Q1 researching and building proprietary tech and scaling our sales and distribution networks. All of this hard work during weak market conditions is designed to help us minimize costs, enhance marginality, and deliver new products that have broader accessibility globally and within the world of DeFi.

Speaker #3: This lays the groundwork for our ability to create innovative instruments based on our VALOR ETP platform. Other innovations that have made considerable progress in Q1 include the work we've done to restructure our venture capital portfolio to bring more value to DeFi Technology shareholders.

Speaker #3: As well as the continued development of the in-house digital asset custody technology. We spent Q1 researching and building proprietary tech and scaling our sales and distribution networks.

Speaker #3: All of this hard work during weak market conditions is designed to help us minimize costs, enhance marginality, and deliver new products that have broader accessibility globally and within the world of DeFi.

Speaker #3: Our results reflect the resilience of our business model and operating approach, despite a challenging macro environment. Looking ahead, we will continue to build strong European and strategic global distribution networks, and the necessary operating infrastructure to support wider adoption of our products.

Andrew Forson: Our results reflect the resilience of our business model and operating approach despite a challenging macro environment. Looking ahead, we will continue to build strong European and strategic global distribution networks and the necessary operating infrastructure to support wider adoption of our products. At the same time, we continue to believe the work underway today will better position DeFi Technologies to capture institutional demand, improve monetization opportunities, and support long-term growth as market conditions improve. With that, I'll turn it back over to Curtis for Q&A.

Speaker #3: At the same time, we continue to believe the work underway today will better position DeFi Technologies to capture institutional demand, improve monetization opportunities, and support long-term growth. With that, I'll turn it back over to Curtis for Q&A.

Speaker #1: Thanks, Andrew. Okay, we'll take some questions initially from the chat. So if you're an investor and you have a question, please type your question in the chat and we'll sort it appropriately.

Curtis Schlaufman: Okay. We'll take some questions initially from the chat. If you're an investor and you have questions, please type your question in the chat, and we'll sort it appropriately. Then, if you're an analyst, please raise your hand and keep it raised, and I'll invite you on one at a time per usual to answer or to ask questions of management live. First question: Are you guys planning to buy back shares? As a retail investor, we are so worried about the Nasdaq listing.

Speaker #1: And then, if you're an analyst, please raise your hand and keep it raised, and I'll invite you on one at a time, per usual.

Speaker #1: To answer or to ask questions of management life. First question: are you guys planning to buy back shares as a retail investor? We are so worried about the NASDAQ listing.

Speaker #1: Johan?

Speaker #4: I think this is, I think, two different subjects. The buyback of shares is something we might do in the future. It depends on our cash flow.

Johan Wattenström: I think this is two different subjects. The buyback of shares is something we might do in the future. It depends on our cash flow. We don't buy back normally from our cash at hand, but rather from strong cash flow. It has no connection to the listing on Nasdaq. There is no risk of us getting delisted from Nasdaq. We have 180 plus 180 days to get over CAD 1. If we're over in 10 days, I think, over CAD 1, it resets. Also, obviously, we will do a reverse split if needed, not if we don't need to do it, but if needed, we will do it.

Speaker #4: We don't buy back normally from our cash at hand, but rather from strong cash flow. And it has no connection to the listing on NASDAQ.

Speaker #4: There is no risk of us getting delisted from NASDAQ. We have 180-plus, 180 days to get over $1. If we over in 10 days, I think, to over $1, it resets.

Speaker #4: Also, obviously, we will do a reverse split if needed—not if we don't need to do it, but if needed, we will do it.

Speaker #4: I know a lot of people are really scared about reverse splits, but I think that's uncalled for. The kind of statistics that show bad performance after reverse splits includes all the companies that do reverse splits.

Johan Wattenström: I know a lot of people are really scared about reverse splits, but I think that's uncalled for. The statistics that shows bad performance after a reverse split includes all the companies that do reverse splits. Most of those are companies in distress. If you sort those out, there's no actual negative impact. We can also, obviously, if we do a reverse split, make use of the buyback program to support through those days to make sure there's no negative impact. I guess in short, there's no risk of us being delisted. We have plenty of runway, and in the worst-case scenario, we can do a reverse split.

Speaker #4: Most of those are companies in distress. So if you sort those out, there's no actual negative impact. We can also obviously, if we do a reverse split, make use of the buyback program to support through those days, to make sure there's no negative impact.

Speaker #4: But yeah, I guess in short, there's no risk of us being delisted we have plenty of runway. And in the worst-case scenario, we can do a reverse split.

Speaker #4: When it comes to the buyback program, we have a lot of really, really high-potential investments and usage of funds to actually make more money.

Johan Wattenström: When it comes to the buyback program, we have a lot of really high potential investments and usage of funds to actually make more money, and that's the primary use. We obviously keep that as an option if we need to. In worst case, yeah, we could do it, but it would never be for Nasdaq's purpose 'cause that's not simply a real risk. Any information to the contrary is false information.

Speaker #4: And that's the primary use. We obviously keep that as an option if we need to. So in the worst case, yeah, we could do it, but it would never be for NASDAQ's purpose, because that's not simply a real risk.

Speaker #4: And any information to the contrary is false information.

Speaker #1: And I think, just to add to that, we also do have—would qualify for another 180-day extension if needed. So, effectively, that gives us about a year to regain compliance.

Curtis Schlaufman: I think, just to add to that, we also do have would qualify for another 180 day extension if needed. Effectively, that gives us about 1 year to regain compliance. Hopefully, as we mentioned, we're growing more optimistic about coming out of this crypto winter. If there's additional catalysts to underlying asset prices, that should push us in our AUM or AM much higher and also or over CAD 1. On top of that, we do have growth initiatives coming up that would, you know, we hope help the share price. There's, I would say, nothing imminent right now in terms of risk or even a reverse split, but it's certainly like if you're hearing that we're gonna be delisted, that's absolutely not true.

Speaker #1: And hopefully, as we mentioned, we're optimistic growing more optimistic about coming out of this crypto winter. So if there's additional catalysts to underlying asset prices, that should push us in our AUM or AM much higher and us over a dollar.

Speaker #1: And on top of that, we do have growth initiatives coming up that we hope will help the share price. So I would say nothing imminent right now in terms of risk or even a reverse split, but certainly, if you're hearing that we're going to be delisted, that's absolutely not true.

Speaker #1: Number two, when do you plan to release your annual goals? I think we talk a lot about our institutional fund structures, the UCITS, actively managed certificates, fund of fund programs—that's our primary focus.

Curtis Schlaufman: Number two, when do you plan to re-release your annual goals? I think, you know, we talk a lot about our institutional fund structures that, UCITS actively managed certificates, fund to fund programs. That's our primary focus for this year. I think I can let Andrew and Johan speak on that further, but we've talked at length over the past few months about what our goal is for this year in terms of diversifying our product sets towards more institutional focus.

Speaker #1: For this year, I think I can let Andrew and Johan speak on that further. But we've talked at length over the past few months about what our goal is for this year in terms of diversifying our product sets towards more institutional focus.

Speaker #3: Yeah. Absolutely, Curtis. I might comment on that. I think people should take comfort in the work that the companies are doing to launch these products.

Andrew Forson: Yeah. Absolutely, Curtis. I might comment on that. I think people should take comfort in the work that the company is doing to launch these products. The fact that we're being so rigorous, meticulous, and doing it the right way to build out a full and complete fund platform, it's also an indication of the moat that there is in this industry. Some time ago, Johan indicated that one of the strategic objectives of DeFi Technologies and our Valour asset is to become one of the world leading asset managers. In order to do that, we have built an infrastructure for these, a broad range of fund products.

Speaker #3: The fact that we're being so rigorous, meticulous, and doing it the right way to build out a full and complete fund platform—it's also an indication of the moat that there is in this industry.

Speaker #3: Some time ago, Johan indicated that one of the strategic objectives of DeFi Technologies and our Valour asset is to become one of the world-leading asset managers.

Speaker #3: In order to do that, we have built an infrastructure for these, a broad range of fund products. And what makes me particularly excited about these fund products is it actually changes the revenue profile of the business, in terms of being able to generate higher returns than a standard hurdle rate, and also in terms of being able to distribute our products globally, without needing any particular new type of listing.

Andrew Forson: What makes me particularly excited about these fund products is it actually changes the revenue profile of the business in terms of being able to generate higher returns than a standard hurdle rate, and also in terms of being able to distribute our products globally without needing any particular new type of listing. The upshot of this is these are very valuable structured instruments in terms of the capital markets, and it means you've got to do it right. And this is something that DeFi Technologies and Valour has consistently done. I mean, in the heart of macroeconomic uncertainty with a lot of volatility in digital asset prices, I have to remind people that we generated nearly CAD 100 million in revenue on a profitable basis when many in the Web3 industry either don't generate revenue at all or certainly don't do it profitably.

Speaker #3: But the upshot of this is, these are very valuable structured instruments in terms of the capital markets, and it means you've got to do it right.

Speaker #3: And this is something that DeFi technologies and Velour has consistently done. I mean, in the heart of macroeconomic uncertainty, with a lot of volatility in digital asset prices, have to remind people that we generated nearly $100 million in revenue on a profitable basis when many in the Web3 industry either don't generate revenue at all or certainly don't do it profitably.

Speaker #3: So we're taking this same safe, consistent, structured approach to building out a new fund platform that will enable us to scale consistently and quickly, and globally, with a range of new instruments that will also provide us higher marginality and higher revenue potential.

Andrew Forson: We're taking this same safe, consistent, structured approach to building out a new fund platform that will enable us to scale consistently and quickly and globally with a range of new instruments that will also provide us higher marginality and higher revenue potential.

Speaker #1: Thanks, Andrew. Next question, hey, Curtis team, hope you're doing well. If you guys are optimistic over crypto price action, how optimistic will guidance be for next quarter FLIR?

Curtis Schlaufman: Thanks, Andrew. Next question. Hey, Curtis team. Hope you're doing well. If you guys are optimistic over crypto price action, how optimistic will guidance be for next quarter, full year? I'll start and then Paul, you can wrap this up. We've technically issued guidance for Stillman. We're guiding for 15% to 20% growth. Last year they did just around CAD 10 million in revenue. 15% to 20% growth puts them at CAD 11 million to CAD 12 million. They had a really great Q1 with over 30% growth year-over-year, so hopefully they can continue to execute at that level. In terms of Valour, from a technical standpoint, we haven't broken out through a bear market trend.

Speaker #1: I'll start and then Paul, you can wrap this up. So we've technically issued guidance for Stillman. We're guiding for 15 to 20 percent growth.

Speaker #1: Last year, they did just around, just about $10 million in revenue. Their 15 to 20 percent growth puts them at $11 to $12 million.

Speaker #1: They had a really great first quarter, with over 30 percent growth year over year. So, hopefully they can continue to execute at that level.

Speaker #1: In terms of Velour, from a technical standpoint, we haven't broken out through bear market trend. I think that comes around breaking past 83,000 for Bitcoin.

Curtis Schlaufman: I think that comes around breaking past the CAD 83,000 for Bitcoin. It's 200 day daily moving average. We'll see there. I think it's, we're taking a more conservative approach this year in regards to guidance on that level. If you look at Q1, and if you believe like we're very optimistic about right now that Q1 was the lows in this bear market, we came out profitable. At these levels, you can assume that we'll continue to be profitable through the course of this year. Paul, if you want to add any additional color.

Speaker #1: It's 200 daily 200 daily moving average. We'll see there. I think it's worth taking a more conservative approach this year in regards to guidance on that level.

Speaker #1: But if you look at Q1, and if you believe—we're very optimistic right now—that Q1 was the low in this bear market, we came out profitable.

Speaker #1: So at these levels, you can assume that we'll continue to be profitable through the course of this year. Paul, if you want to add any additional color.

Speaker #3: Yeah. Thank you, Curtis. Okay, so for everybody, again, let's start with Stillman because it's easier to get your head around. They did about $10 million in 2025 and we've said $15 to $20 million.

Paul Bozoki: Yeah. Thank you, Curtis. Okay, for everybody, let's, you know, again, let's start with Stillman because it's easier to get your head around. You know, they did about CAD 10 million in 2025, and we've said CAD 15 to 20 million. 20% would be CAD 12 million. People, if you look, they did CAD 2.9 million in Q1, it is tracking to do CAD 12 million this year. There's CAD 12 million. You look at Valour, and valour.com has our AUM real time every day. Our monetization in 2025 was 5.2% for the full year. Q1 was low at three and a half.

Speaker #3: So, 20 percent would be 12 million people. If you look, they did 2.9 million in Q1. So, it is tracking to do 12 million this year.

Speaker #3: So there's 12. Then you look at Velour and there's Velour.com has our AUM real-time every day. Our monetization in 2025 was 5.2 percent for the full year.

Speaker #3: Q1 was low at 3.5. It was, we think, a pretty crazy quarter in Q1 with crypto prices. And in general, and we are crypto bulls, so we're suggesting 4.5 percent as a conservative monetization rate for the year.

Paul Bozoki: It was, we think, a pretty crazy quarter in Q1 with crypto prices in general, and we are crypto bulls, so we're suggesting 4.5% as a conservative monetization rate for the year, and then put that on an AUM number for the year. Our AUM has moved around a lot. It does generally move with crypto prices. We've been over a billion, as people know. You know, now we're at 530-ish. You hear about all the initiatives we've got Andrew, Johan, and Jakob working on to bring in new money.

Speaker #3: And then put that on an AUM number for the year. And our AUM has moved around a lot. It does generally move with crypto prices.

Speaker #3: We've been over a billion, as people know. Now we're just over $530-ish. And you hear about all the initiatives. We've got Andrew, Johan, and Jacob working on to bring in new money.

Speaker #3: In terms of providing guidance, with those numbers, you can kind of get to a core safe revenue. But we're declining to put out formal guidance for the entire company because we need a little bit more time on usage and the fund structures, which we think can really drive big numbers.

Paul Bozoki: In terms of providing guidance, like with those numbers, you know, you can kind of get to a core safe revenue, but we're declining on putting out a formal guidance for the entire company because we need a little bit more time on UCITS and the fund structures, which we think can really drive big numbers. Until there are a little bit more visibility, we're gonna hold off on giving a consolidated kind of fixed number. That is what I suggest people watch for, and that hopefully would really, you know, spark up the company once we get those things going.

Speaker #3: And until there are a little bit more visibility, we're going to hold off on giving a consolidated kind of fixed number. But that is what I'd suggest people watch for.

Speaker #3: And that hopefully would really spark up the company once we get those things going.

Speaker #1: Thanks, Paul. The investigation into the share price manipulation issue has been around for almost a year. Shareholders need answers. No platitudes. Any meaningful update, please?

Curtis Schlaufman: Thanks, Paul. The investigation into share price manipulation issue has been around for almost a year. Shareholders need answers, no platitudes. Any meaningful update, please. This is an ongoing process. It's still ongoing. It's something we will release updates about when there's material information. Due to the fact that it could be a legal process at all, we also cannot comment on it, because if we were to comment on something that is not public and at privilege to the company, we would lose privilege on that information. When we have further information on that particular topic, we will release it. It is still currently an ongoing discovery process.

Speaker #1: This is an ongoing process. It's still ongoing, and it's something we will release updates about when there's material information. Due to the fact that it could be a legal process at all, we also cannot comment on it, because if we were to comment on something that is not public and at privilege to the company, we would lose privilege on that information.

Speaker #1: So when we have further information on that particular topic, we will release it. And it is still currently an ongoing discovery process. And I think as a public company, too, we have to be very responsible and mindful of what we put out publicly.

Curtis Schlaufman: I think as a public company too, like we have to be very responsible and mindful of what we put out publicly, especially in matters that can be this sensitive. Unfortunately, we can't speak openly and freely about it publicly. Can you speak to your stablecoin strategy? You have small investments in Stablecorp and cNGN. The potential there of collaboration, integration into your stack. Fire Labs in-house development update. Andrew?

Speaker #1: Especially in matters that can be this sensitive. So we can't just, unfortunately, we can't speak openly and freely about it publicly. Can you speak to your stablecoin strategy?

Speaker #1: You have small investments in the stable core and CNGN. The potential there of collaboration integration into your stack. Fire Labs in-house development update. Andrew?

Speaker #3: Yeah. Our strongest assets are part of our venture portfolio. And as the questioner correctly identified, we have investments in Continental Stablecoin, which is the CNGN, and in Stablecorp.

Andrew Forson: Yeah. Our strongest assets are part of our venture portfolio, and as the questioner correctly identified, we have investments in Continental Stablecoin, which is the cNGN, and in Stablecorp. We consider these very valuable, and their value will be increasingly accretive to DeFi as our fund structures come online. Now, one of the things I alluded to in my remarks is that we are working on innovative ways to generate more, actually revenue-based value for the DeFi Technologies group. From our venture portfolio. You can believe having access to our stable coins, these stable coin projects on which we sit on the cap table alongside Circle and Coinbase Ventures in both. The objective is to leverage these partnerships, leverage these companies, explore potential liquidity products.

Speaker #3: And they will be increasingly, their value will be increasingly accretive to DeFi as our fund structures come online. Now, one of the things I alluded to in my remarks is that we are working on innovative ways to generate more, actually revenue-based value for the DeFi Technologies group from our venture portfolio.

Speaker #3: And you can believe, having access to our stablecoins, these stablecoin projects on which we have—we sit on the cap table alongside Circle and Coinbase Ventures, and both.

Speaker #3: The objective is to leverage these partnerships, leverage these companies, explore potential liquidity products. Of course, they are already in the process, in both instances, of working or onboarding to Stillman, which is significant, being that these stablecoins need access to markets and need trading pairs in order to generate liquidity.

Andrew Forson: Of course, they are already in the process in both instances of working or onboarding to Stillman Digital, which is significant, being that these stablecoins need access to markets, need trading pairs in order to generate liquidity. From our perspective, I think these are anchor products to the future of our venture portfolio, which we believe will be quite innovative and will actually leverage our core fund platform.

Speaker #3: And from our perspective, I think these are anchor products to the future of our venture portfolio, which we believe will be quite innovative and will actually leverage our core fund platform.

Speaker #1: Thanks, Andrew. Have you all considered bringing custodial services in-house given this talk to issue? I think one answer is yes, but I'll let Johan explain more.

Curtis Schlaufman: Thanks, Andrew. Have you all considered bringing custodial services in-house, given this SOC 2 issue? I think one answer is yes, but I'll let Johan explain more about our custody plans.

Speaker #1: About our custody plans.

Speaker #2: Yeah, on the custody, obviously, we have an internal custody technology stack, which we are developing now to productize and release to the public as a service.

Johan Wattenström: On the custody, obviously, we have an internal custody technology stack, which we are developing now to productify and release to the public as a service. I think we have a very unique offering in this area. One of the reasons I believe it is very important to build on this and release it is that we don't wanna pay any other middlemen for this type of services. Also our needs are on a different level than what we can see the offerings, the other offerings are in the markets. It will provide a foundation for other things we are building in DeFi, in capital markets infrastructure in decentralized finance.

Speaker #2: And I think we have a very unique offering in this area. And one of the reasons I believe it's very important to build on this and release it is that we don't want to we don't want to pay another middleman for this type of services.

Speaker #2: But also, our needs are on a different level than what we can see—the offerings, the other offerings in the markets. And it will provide a foundation for other things we're building in DeFi and capital markets infrastructure in the centralized finance.

Speaker #2: Once we have this productified and launched, we will go after both institutional and retail deposits and money into this tech stack. And we have already quite a lot of infrastructure we will stack on top of the custody offering.

Johan Wattenström: Once we have this productified and launched, we will go after both institutional retail, deposits and money into this tech stack. We have already quite a lot of infrastructure we will stack on top of the custody offering. I think this, if you wanna build and be active in building infrastructure in decentralized capital markets, you should have a really robust and innovative offering on the custody side. That's what we're aiming to do. I think we probably are aiming to have something ready end of Q3, definitely this year for public release. End of Q3, it would be ready for using with all our internal needs for custody, for sure.

Speaker #2: So I think that if you want to build and be active in building infrastructure in the centralized capital markets, you should have a really robust and innovative offering on the custody side.

Speaker #2: So that's what we aim to do. And I think we probably are aiming to have something ready end of Q3. Definitely this year for public release.

Speaker #2: End of Q3, it would be ready for use with all our internal needs for custody, for sure. It's a bit early to say when we will have a date for public release.

Johan Wattenström: We it's a bit early to say when we have a date for public release, but it's not just about the custody stack. It's because this is foundation for other things we think are unique and we can bring to the markets for sure.

Speaker #2: But it's not just about the custody stack. It's because this is a foundation for other things we think are unique, and we can bring to the markets for sure.

Speaker #1: We'll move on into some analyst questions. We'll get Alan Klee from Maxim. You're on. So go ahead and unmute yourself. Alan?

Curtis Schlaufman: We'll move on into some analyst questions. We'll get Allen Klee from Maxim. You're on, so go ahead and unmute yourself. Allen? I think you're on mute. Yeah. Okay. Maybe he's stepped away for a second.

Speaker #4: I think you're on mute.

Speaker #1: Yeah. Okay. Maybe if you stepped away for a second.

Speaker #3: Oh, I'm sorry. I think I was can you hear me?

Allen Klee: Oh, I'm sorry. I think, can you hear me?

Speaker #1: Yeah. We hear you, Alan.

Curtis Schlaufman: Yeah, we can.

Johan Wattenström: We hear you, Allen.

Speaker #3: Sorry. Yeah. Can you expand on your new institutional structures a bit and the feedback that you're hearing from potential customers?

Allen Klee: Sorry. Yeah. Can you expand on your new institutional structures a bit and the feedback that you're hearing from potential customers?

Speaker #2: Yeah, I'm happy to jump in on that. So basically, historically, as you might know, I think 95% of our AUM has been in the ETPs from retail to retail side.

Johan Wattenström: Yeah, I'm happy to jump in on that. Basically, historically, as you might know, I think 95% of our AUM has been in ETPs from retail, the retail side. I would say the last 9 months, we have seen and heard a lot, a very strong demand from both institutional clients in our core markets, EU, Switzerland, and UK. Also on a global scale from other types of funds and institutional platforms. To meet this demand, we have accelerated our efforts to build globally available and more institutionally targeted type of products.

Speaker #2: But I would say the last nine months, we have seen and heard a very strong demand from both institutional clients in our core markets, EU and Switzerland.

Speaker #2: But in the UK, but also on a global scale from other types of funds and institutional platforms. And to meet this demand, we have accelerated our efforts to build globally available and more institutionally targeted types of products.

Speaker #2: Part of this is the usage fund, also Valor, the other funds in Valor Funds, which constitute quite a few hedge funds we have in the pipeline.

Johan Wattenström: Part of this is the UCITS fund, also Valour, the other funds in Valour funds, which constitute quite a few hedge funds we have in the pipeline that will cover needs both from normal pension funds and alternative investment funds, but also from fund to funds, both in crypto and outside of crypto. Family offices, I would say is also a strong driver. We have got some commitments, and we have got some really strong demands from participating in this space. Obviously, I think the upside in terms of AUM is larger for this area than for the retail side. Obviously, every ticket size is much higher.

Speaker #2: That will cover needs both from normal pension funds and alternative investment funds, but also from funds of funds, both in crypto and outside of crypto.

Speaker #2: And family offices, I would say, is also a strong driver. So, we have got some commitments, and we have got some really strong demands from participating in this space.

Speaker #2: And obviously, I think the upside in terms of AUM is larger for this area than for the retail side. And obviously, every ticket size is much, much higher.

Speaker #2: So I think those products are the first to meet this demand. We're also looking to do a few more actively managed ETPs, but also some as backed ETPs to meet another part of this demand. That would be volatility-targeted ETPs, for instance, which have been sought by a lot of asset allocators who do not want to reweight their allocation to crypto continuously.

Johan Wattenström: I think those products are the first to meet this demand. We're also looking to do a few more actively managed ETPs, but also some asset-backed ETPs to meet another part of this demand that would be volatility targeted ETPs, for instance, that has been seeked by a lot of asset allocators that do not want to re-weight their allocation to crypto continuously. Yeah, you will see innovation both on the fund side, normal hedge fundsAs SICAV funds, UCITS funds, but also in the asset-backed ETP side for this purpose. Also, I think maybe a little bit longer time horizon, a few of these will be well suited for tokenization as well.

Speaker #2: So yeah, you will see innovation both on the fund side—normal hedge funds, CCAP funds, UCITS funds—but also in the asset-backed. Also, I think maybe a little bit longer time horizon, a few of these will be well suited for tokenization as well.

Allen Klee: Thank you. One last question. It didn't seem like you put too much into staking in one Q. I'm just wondering, how much of the AUM do you think can be put to work in staking and lending?

Speaker #3: Question. It didn't seem like you put too much into staking in one queue. I'm just wondering, how much of the AUM do you think can be put to work in staking and lending?

Speaker #2: I'll comment on that first, and maybe let Paul comment on the levels then. But I think we are actually continuously increasing the levels—the percentage of AUM we put into staking.

Johan Wattenström: First, a comment at first, and maybe let Paul comment on the levels then. I think we are actually continuously increasing the levels, the percentage of AUM we put into staking. I think a fortunate thing, temporarily in Q1, where we already see improvements, is that with the lows of the crypto market, the Bitcoin dominance and also dominance for Bitcoin and Ethereum increased quite a bit. As you've seen, the falling prices in Sol, Sui, all the other altcoins has been much deeper. Obviously then the overall AUM constitutes a larger proportion of Bitcoin, Ethereum, where our margins are the lowest. Basically, once the market pop up back, we've seen a lot of movement already in Sui, in TON and BNB and so forth.

Speaker #2: I think, unfortunately, temporarily in Q1, where we already see improvement, is that with the lows of the crypto market, the Bitcoin dominance, and also dominance for Bitcoin and Ethereum, increased quite a bit.

Speaker #2: And as you've seen, the falling prices in Seoul, SUI, all the other altcoins, has been much deeper. So obviously, then the overall AUM constitutes a larger proportion of Bitcoin and Ethereum, where our margins are the lowest.

Speaker #2: So, it's basically once the market pops back up—we've seen a lot of movement already in SUI, in TON, and BNB, and so forth.

Speaker #2: So we're quite confident that the market is bouncing back. And with that, you will see a much higher percentage of the AUM being in higher yielding, higher staking yielding assets.

Johan Wattenström: We confident that market is bouncing back, and with that, you will see a much higher percentage of the AUM being in higher yielding, higher staking yielding assets. I think it's mainly been driven by the relative steep contraction of values in the altcoin markets.

Speaker #2: So I think it's mainly been driven by the relative, steep contraction of values in the altcoin markets.

Speaker #1: Yeah, Alan, to add to it—so yeah, Johan gave you why the staking yield is down. It's just, altcoins pay more than Bitcoin and Ethereum.

Paul Bozoki: I want to add to it. Yeah, that's Johan Wattenström gave you why the staking yield is down. It's just, you know, altcoins pay more than Bitcoin and Ethereum, we staked 59%. It's a little bit on the lower side, and it's because of just there's a lot of volatility. There was, you know, February, there was some very sharp sell-offs. There is unbonding periods to get coins released so you can sell them. You know, we do try to hedge. The staking was driven a bit lower. In theory, it could get up to about 80%. I think, low 70s would probably be more realistic in terms of if you were modeling it. Yeah, that's my view. In a volatile market, it's in the high 50s, low 60s.

Speaker #1: But we stake 59%. It's a little bit on the lower side, and it's because there's a lot of volatility. There was February, there were some very sharp sell-offs, there is unbonding periods to get coins released.

Speaker #1: So you can sell them. We do try to hedge, so the staking was driven a bit lower in theory. It could get up to about 80%.

Speaker #1: I think low 70s would probably be more realistic in terms of if you were modeling it. But yeah, that's my view. So in a volatile market, it's in the high 50s, low 60s.

Speaker #1: In a normal market, 70s. And then in ideal times, up to maybe 80.

Paul Bozoki: In a normal market, seventies, and then, in ideal times, up to maybe eighty.

Speaker #2: Yeah. We think that's come up now both with the market volatility, but also structurally as we're pushing how much we can stake safely without being in danger or not being able to hedge 100%.

Johan Wattenström: Yeah. We think that come up now both with the market volatility, but also, structurally as we pushing how much we can stake safely without being in danger of not being able to hedge 100%.

Speaker #3: Thank you very much.

Allen Klee: Thank you very much.

Curtis Schlaufman: Okay. Mike from Northland.

Speaker #1: Okay. And then Mike from Northland?

Speaker #4: Hey, guys. First question, I'm just curious—you are sitting on this slightly over $100 million of cash. How much cash do you need to run your business?

[Analyst] (Northland): Hey, guys. First question, I'm just curious. You are sitting on this, you know, slightly over CAD 100 million in cash. How much cash do you need to run your business? You know, with all the trading, with new products. You know, if you look out in 2026 and 2027, what is a minimum level of cash you need to run the business? Just trying to think through how much you truly need the next couple years.

Speaker #4: With all the trading, with new products, if you look out in ’26 and ’27, what is a minimum level of cash you need to run the business?

Speaker #4: Just trying to think through how much you truly need the next couple of years.

Speaker #2: Yeah, for sure. I can start with that and leave it over to Paul for extra comments afterwards. But for our own market making—where we also, by the way, we'll try to make it more visible.

Johan Wattenström: Yeah, for sure. I can start with and leave over to Paul Bozoki for extra comments afterwards. For our own market making, where we also, by the way, will try to make it more visible, our profits on our own market making. It's now kind of hidden in the realized and unrealized PNL. For our own market making, I think the demand has been between CAD 20 and 35 million in that realm. There's obviously a scenario where we could go down to 0. We do have external market makers in all areas, but we think it's strategically very important to hold the control of all the order books, so we can have tighter spreads and higher quality prices than all our competitors, which we do have.

Speaker #2: Our profits on our own market making—it's now kind of hidden in the realized and unrealized P&L. For our own market making, I think the demand has been between $20 million and $35 million in that realm.

Speaker #2: And there's obviously a scenario where we could go down to zero. We do have external market makers in all areas, but we think it's strategically very important to hold the control of all the order books.

Speaker #2: So we can have tighter spreads and higher quality prices than all our competitors, which we do have. But I would say it's around, yeah, say $25 to $35 million or so.

Johan Wattenström: I would say it's around say CAD 25 to 35 million or so that we need to have. Obviously we have a few other needs for capital right now that will go down with time. When we're launching our funds and other structures, we will use some of the cash to seed these funds to make it easier to go out and do roadshows and sell it, 'cause we do need a substantial AUM to get big tickets in the beginning. It will be easier to accelerate that phase early on with seed money in those. We have been looking, and we are looking at different acquisitions.

Speaker #2: That we need to have. Then, obviously, we have a few other needs for capital right now that will go down with time.

Speaker #2: When we're launching our funds, and other structures, we will use some of the cash to seed these funds to make it easier to go out and do roadshows and sell it, because we do need a substantial AUM to get big tickets in the beginning.

Speaker #2: And it will be easier to accelerate that phase early on with seed money in those. And then we are, we have been looking, and we are looking at different acquisitions.

Speaker #2: We are very careful about it, so we don't see a lot of that. But there are probably some good opportunities. And we, in this market, still see some push against consolidation.

Johan Wattenström: We are very careful about it, so we won't see a lot of that. There will probably be some good opportunities. We in this market still, it's some push against consolidation, and we are in a good position to take advantage of that. We do not want to opt out of that opportunity to act quickly if there's a really great opportunity out there.

Speaker #2: And we are well positioned to take advantage of that. So we do not want to opt out of that opportunity to act quickly if there's a really great opportunity out there.

Speaker #4: Got it. And then maybe just secondly, where should the market's expectations be on you guys showing a ramp in revenue from new products? Is that the second half of '26, first half of '27?

[Analyst] (Northland): Got it. Maybe just secondly, where should the market's expectations be on you guys showing a ramp in revenue from new products? Is that H2 2026, H1 2027? When should we expect to see some of that?

Speaker #4: When should we expect to see some of that?

Speaker #2: I would say the first half for sure—maybe towards the end of Q3. But the second half for sure. I would be very surprised if we don't see a significant contribution.

Johan Wattenström: I would say the H1 for sure, maybe towards the end of Q3. H2 for sure. I would be very surprised if we don't see a significant contribution. Something I don't think we maybe commented on, but something we're very excited about in our venture into alpha-type products with our funds and active managed certificates, is that those will have at least the first fund, and I think the second and third one as well, will have the 1.5% management fee plus 15% performance fee structure. Besides our Valour core business and Stillman, this will be a third, I would say, very much uncorrelated leg of our revenue streams.

Speaker #2: Something I don't think we maybe commented on, but something we're very excited about in our venture into alpha-type products with our funds and active money certificates, is that those will have—at least the first fund.

Speaker #2: And I think the second and third one as well. We'll have the 1.5% management fee plus 15% performance fee structure. So, besides our Valor core business and Stillman, this will be a third, I would say, very much uncorrelated leg of our revenue streams.

Speaker #2: As the type of strategies we will launch can have some really great years. And if we simulate from that, the 15% performance fee could be something that's totally uncorrelated to market levels or activity.

Johan Wattenström: As the type of strategies we will launch can have some really great years. And if we look historically and simulate from that, the 15% performance fee could be something that's totally uncorrelated to market levels or activity, whilst still being significant even from not huge AUMs. Because these strategies has a great sharp ratio, very interesting performance dynamics and low maximum drawdowns. I think from how that return profile looks, it will actually give us a third uncorrelated way of earning potentially a lot of money for a lot of months. I am really excited about that. Obviously, it depends from month to month when we see those returns monthly.

Speaker #2: Whilst still being significant, even from not huge AUMs. Because this strategy has a great Sharpe ratio—very interesting performance dynamics. And the low withdrawal, maximum drawdowns.

Speaker #2: So I think from how that return profile looks, it will actually give us a third uncorrelated way of earning, potentially, a lot of money for a lot of months.

Speaker #2: So I'm really excited about that. Obviously, it depends from month to month when we see those returns monthly. But I think, anyhow, from end of Q3, we should see a significant—the income start picking up.

Johan Wattenström: I think anyhow from end of Q3, we should see a significant the income start picking up.

Speaker #4: Got it. Thank you.

[Analyst] (Northland): Got it. Thank you.

Speaker #1: Thanks, Mike. Any other analysts? Raise your hand, and I'll invite you on. Okay. Then we'll go back to a couple of questions in the chat in the meantime.

Curtis Schlaufman: Thanks, Mike. Any other analysts? Raise your hand and I'll invite you on. Okay. We'll go back to a couple questions from the chat in the meantime. This one for Andrew. Next steps in Brazil to get more Valour traffic on that exchange.

Speaker #1: This one for Andrew. Next steps in Brazil to get more Valor traffic on that exchange.

Speaker #2: Yeah, so Q1 was a very tricky quarter in the digital asset space, for starters. And what we did for most of Q1 was, frankly, focus on setting up a very efficient, lean capital markets team.

Andrew Forson: Yeah. The Q1 was a very tricky quarter in the digital asset space, for starters. What we did for most of Q1 was frankly focus on setting up a very efficient, lean capital markets team. We weren't focused on selling in January and February, but I think we had our kickoff event. Any of you that follow us on X or LinkedIn will see that we actually created a DeFi Tech Brazil. We had our kickoff event there. What followed in the next month was we ended up beating our next, I'll call them an expat competitor in terms of total turnover within that market. What we wanna do is make sure that we're really well-positioned not just for the ETPs, because the ETPs wrap our existing products.

Speaker #2: So we weren't focused on selling in January and February, but I think we had our kickoff event. Any of you that follow us on X or LinkedIn will see that we actually created a DeFi Tech Brazil—we had our kickoff event there.

Speaker #2: And then what followed in the next month was we ended up beating our next—I'll call them an expat competitor—in terms of total turnover within that market.

Speaker #2: But what we want to do is make sure that we're really well positioned, not just for the ETPs, because the ETPs wrap our existing products.

Speaker #2: But we also want to make sure that they understand what is coming in terms of our institution-friendly products on the other fund platform. So right now, we have a team—effectively a capital markets, or I guess in fund parlance, an investor relations team.

Andrew Forson: We also wanna make sure that they understand what is coming in terms of our institution-friendly products on the other fund platform. Right now we have a team, effectively a capital markets, or I guess in fund parlance, an investor relations team. We also have PR and publicity, and we have met. I actually just returned from there, where I did no fewer than 3 meetings a day, which were long meetings with institutional investors to build our brand, make sure people know that we are available, and also make sure people are aware of the services at Stillman, of course, our 5 ETPs that are listed and our future fund products coming online. With each visit that we make, with each month, we get more traction. I want to highlight something.

Speaker #2: We also have PR and publicity. And we have met. I actually just returned from there, where I did no fewer than three meetings a day.

Speaker #2: These were long meetings with institutional investors to build our brand, make sure people know that we are available, and also make sure people are aware of the services at Stillman.

Speaker #2: Of course, our five ETPs that are listed and our future fund products coming online. And with each visit that we make, with each month, we get more traction.

Speaker #2: But I want to highlight something. We're in this for the long term, and we're in this to build strong distribution—not only for our existing products, but also for our future products, which may have higher marginality and higher uniqueness.

Andrew Forson: We're in this for the long term, and we're in this to build a strong distribution for not only our existing products, but our future products, which may have higher marginality and higher uniqueness. Brazil is a market of 200 million people, but they currently have a very high risk-free rate of around 15%. We are a new entrant into the market. It's important that people get to know us, and in the process of getting to know us, they get more comfortable with our existing products and our future products. We'll just be very steady. I was pleased with our first month results, but obviously we need to get more. We have to remember that a lot of the institutions that we're dealing with, they don't necessarily buy exclusively through the B3.

Speaker #2: And Brazil is a market of 200 million people. But they currently have a very high risk-free rate of around 15%. And we are a new entrant into the market.

Speaker #2: So, it's important that people get to know us. And in the process of getting to know us, they get more comfortable with our existing products and our future products.

Speaker #2: And we'll just be very steady, but I was pleased with our first month results. But, obviously, we need to get more. And we have to remember that a lot of the institutions that we're dealing with, they don't necessarily buy exclusively through the B3.

Speaker #2: So many of them get access to our European ETPs through offshore structured instruments and offshore buying. And so, that might not show up on the B3.

Andrew Forson: Many of them get access to our European ETPs through offshore structured instruments and offshore buying. That might not show up on the B3, but we certainly don't want to restrict how people decide to spend money on Valour or DeFi technology products. We're just gonna grow the business across the board.

Speaker #2: But we certainly don't want to restrict how people decide to spend money on Valor or DeFi technology products. So we're just going to grow the business across the board.

Speaker #1: Sure. Alan, did you have another question?

Curtis Schlaufman: Allen, did you have another question?

Speaker #3: No, I don't know what happened.

Allen Klee: No. I don't know what happened.

Speaker #1: Okay, you had your hands raised again. Okay, let's see. Next question—Paul, I think we probably need your help with this. Please elaborate on what the next $150 million in AUM growth means to our bottom line.

Curtis Schlaufman: Okay. You had your hand raised again. Okay. Let's see. Next question. Paul, I think, probably need your help with this. Please elaborate on what the next 150 million in AUM growth means to our bottom line and to our forward valuation of the company. Please also reiterate how swiftly a CAD 150 million bump in AUM would mean since we are already profitable. Please outline our cash burn for the year.

Speaker #1: And to our forward valuation of the company. Please also reiterate how swiftly a $150 million bump in AUM would be, since we are already profitable.

Speaker #1: And please outline our cash burn.

Speaker #2: Okay, thanks. So, yeah, for everybody, that's a great one. We have a ton of operating leverage in this business. Okay? So, what operating leverage means is just our costs are relatively fixed.

Paul Bozoki: Okay, thanks. Yeah, for everybody, that's a great one. We have a ton of operating leverage in this business, okay? What operating leverage means is just our costs are relatively fixed. You know, last year, our operating general and fees and commissions were CAD 40 million. We've told you we've targeted CAD 36 million. On an annualized rate, we're at CAD 38.7 million. If we do CAD 550 million of AUM in Stillman, like we're positive. We're breaking even to positive. Any additional AUM, it all flows to the bottom line. You know, assume 90%.

Speaker #2: Last year, our operating general fees and commissions were $40 million. We've told you we've targeted $36 million on an annualized rate. We're at $38.7 million.

Speaker #2: And if we do $550 million of AUM in Stillman, we're positive. We're break-even to positive. So any additional AUM, it all flows to the bottom line.

Speaker #2: Assume 90%. There's a little bit of slippage on some extra fees and commissions for trading, maybe a little bit of SG&A to go with it.

Paul Bozoki: There's, you know, a little bit of slippage on some extra fees and commissions for trading, maybe a little bit of SG&A to go with it, but we don't need to really roll out the team or add more bodies or rent more offices to manage another, you know, few hundred million CAD of money. Our existing infrastructure can do it. You know, put a 4.5% monetization on it and assume that 90% of it comes to the bottom line.

Speaker #2: But we don't need to really roll out the team or add more bodies or rent more offices to manage another few hundred million dollars of money.

Speaker #2: Our existing infrastructure can do it. So, put a 4.5% monetization on it, and 90% of it comes to the bottom line.

Speaker #1: Yeah. And I think, adding to that, as we—I think Paul discussed—Bitcoin consisted of the higher allocation of our ETP makeup in Q1.

Curtis Schlaufman: Yeah. I think, adding to that, as we, I think Paul discussed, Bitcoin consisted of the higher allocation of our ETP makeup in Q1. Since we don't charge management fees on Bitcoin, that did decrease our monetization levels. If we see alts run, which have much higher yield allocations, that will increase our monetization levels as well. If we can continue to grow Solana, Cardano, XRP, and some of these longer tail alts which offer higher yields, that will also help our monetization levels increase. Just in case that wasn't clear.

Speaker #1: And since we don't charge management fees on Bitcoin, that did decrease our monetization levels. But if we see alts run—which most have much higher yield allocations—that will increase our monetization levels as well.

Speaker #1: So if we can continue to grow Solana, Cardano, XRP, and some of these longer-tail alts, which offer higher yields, that will also help our monetization levels increase.

Speaker #1: Just in case that wasn't clear.

Speaker #2: Fully agree. Thank you, Curtis.

Paul Bozoki: Fully agree. Thank you, Curtis.

Speaker #1: Yeah, another question. Covered monetization. Any plan to accelerate the stock price? Again, I think if you listen to the context—what we're talking about here—our current business model, looking to increase monetization where we can.

Curtis Schlaufman: Yeah. Another question, covered monetization. Any plan to accelerate the stock price? Again, I think if you listen to context, what we're talking about here, our current business model, looking to increase monetization where we can. New products, hopefully some help with the macro backdrop and Bitcoin and altcoin prices as well, and some other things that we haven't talked about at the moment. Again, typically in a bear market, crypto equities are hammered. When we enter into a bull market, then crypto equities have consistently rerated. And we are a crypto equity. Our primary business is a cyclical business as of now.

Speaker #1: New products. Hopefully, some help with the macro backdrop and Bitcoin, and on altcoin prices as well. And some other things that we haven't talked about at the moment.

Speaker #1: Again, typically, in a bear market, crypto equities are hammered. But when we enter into a bull market, then crypto equities have consistently rerated. And we are a crypto equity—our primary business is a cyclical business.

Speaker #1: As of now, we are working on new fund products and structures that would be market agnostic, meaning they're not significantly impacted by the underlying crypto price movements.

Curtis Schlaufman: We are working on new fund products and structures that would be market agnostic, meaning they're not significantly impacted by the underlying crypto price movements. That'll bring more stability to our AUM, that'll bring more stability to our revenue, and ultimately more stability to our share price. What do you think the biggest misconception the market currently has about DeFi Technologies? I think I have a lot of those. One of them, people think we're going to be delisted. We're not going to. People think we're a digital asset treasury company. We're not. We have two-plus real operating businesses that produce real revenue and will compound earnings year after year. I don't know if anybody from management wants to take a stab at that. Maybe Andrew or Johan.

Speaker #1: So that'll bring more stability to our AUM. That'll bring more stability to our revenue. And ultimately, more stability to our share price. What do you think the biggest misconception the market currently has about DeFi Technologies?

Speaker #1: I think I have a lot of those. One of them—people think we're going to be delisted. We're not going to. People think we're a digital asset treasury company.

Speaker #1: We're not. We have two-plus real operating businesses that produce real revenue, and we'll compound earnings year after year. I don't know if anybody from management wants to take a stab at that.

Speaker #1: Maybe Andrew or Johan. What are you hearing about misconceptions about the company, if you are?

Curtis Schlaufman: What are you hearing about misconceptions about the company, if you are?

Speaker #2: Well, I think you hit the nail on the head. I guess I have a slightly different perspective. I think that the actual fundamentals of the platform and the company are quite strong.

Andrew Forson: Well, I think you hit the nail on the head. I guess I have a slightly different perspective. I think that the actual fundamentals of the platform and the company are quite strong. The beauty of it is, I don't have to just say that being optimistic, I can say it based on the money that we actually make. The reality is, there will always be negative soothsayers, at the end of the day, our focus is on keeping costs down, generating revenue, and being profitable. We had a war. We had spiking oil prices. We had absolutely everything bad happen. There have been currency fluctuations, macroeconomic factors, and we still made money.

Speaker #2: But the beauty of it is, I don't have to just say that being optimistic. I can say it based on the money that we actually make.

Speaker #2: The reality is, there will always be negative soothsayers. But at the end of the day, our focus is on keeping costs down, generating revenue, and being profitable.

Speaker #2: We had a war. We had spiking oil prices. We had absolutely everything bad happen. There have been currency fluctuations, macroeconomic factors—and we still made money.

Andrew Forson: This is a platform that is being prepared for the future to be a real infrastructure company in the world of digital finance. I'll add something. Johan talked about custody. That custody represents more than just a service line. From an accounting perspective, it helps us minimize our costs. Without a doubt. We don't have to pay other people to store our digital assets. From an infrastructure perspective, every time you see a news article that talks about an RWA, think Valour custody. Every time you see a news article that talks about tokenization, securitization, or stablecoins, think Valour custody, because anything that lives on chain is going to need a quality custodian. The next thing is, we are the predominant avenue for structuring instruments so that digital assets can get money from traditional capital markets. We're the best at that.

Speaker #2: This is a platform that is being prepared for the future to be a real infrastructure company in the world of digital finance. I'll add something.

Speaker #2: Johan talked about custody. That custody represents more than just a service fund. From an accounting perspective, it helps us minimize our costs without a doubt.

Speaker #2: We don't have to pay other people to store our digital assets. But from an infrastructure perspective, every time you see a news article that talks about an RWA, think Valor Custody.

Speaker #2: Every time you see a news article that talks about tokenization or securitization, or stablecoins, think Valor Custody. Because anything that lives on-chain is going to need a quality custodian.

Speaker #2: And then the next thing is, we are the predominant avenue for structuring instruments so that digital assets can get money from traditional capital markets.

Speaker #2: We're the best at that. Foundations come to us for that. Other institutional investors come to us knowing that we've done it for a long time.

Andrew Forson: Foundations come to us for that. Other institutional investors come to us knowing that we've done it for a long time. Johan Wattenström, our CEO, created the world's first Bitcoin ETP back in May 2015. We just have to understand that, yeah, there's been macroeconomic volatility in Q1 2026. While we remember that in September 2025, when we were at CAD 1.2 billion in AUM, if we had the infrastructure that we have now, our numbers, based on the improvements that we made, would be that much better. We all know that the infrastructure and finance for tokenized assets, digital assets, it's just increasing. It's getting more and more, and we're gonna be there to help it grow and to service that demand.

Speaker #2: Johan, our ETP, back in May 2015. We just have to understand that, yeah, there's been macroeconomic volatility in Q1 2026. While we remember that in September 2025, when we were at $1.2 billion in AUM, if we add the infrastructure that we have now, our numbers, based on the improvements that we made, would be that much better.

Speaker #2: And we all know that the infrastructure and finance for tokenized assets, digital assets, is just increasing—it's getting more and more. And we're going to be there to help it grow.

Speaker #2: And to service that demand.

Speaker #1: Thanks, Andrew. Do you all have any offering or product plans to integrate into TradFi institutions?

Curtis Schlaufman: Thanks, Andrew. Do you all have any offering product plans to integrate into TradFi institutions?

Speaker #2: Well, yes. I mean, our funds—I think most of the institutions that would be consumers of our funds are actually the largest banks, the largest capital allocators.

Andrew Forson: Well, yes. I mean, our funds. I think most of the institutions that would be consumers of our funds are actually the largest banks, the largest capital allocators that are looking for specific strategies to offer their private wealth management divisions or their proprietary trading desks. People have to remember, I think people don't understand the power of Stillman Digital. These prime brokerage OTC firms are how these large institutions make bulk buys. This is why Stillman is growing, whether markets are good or not good. It's based on transaction fees, transaction volumes, and what they do is they enable large institutions, large holders of digital assets or stablecoins to take bulk positions in and out with effectively predictable pricing. I leave the rest to Johan to elaborate.

Speaker #2: That are looking for specific strategies to offer their private wealth management divisions or their proprietary trading desks. And then people have to remember, I think people don't understand the power of Stillman Digital.

Speaker #2: These prime brokerage OTC firms are how these large institutions make bulk buys. This is why Stillman is growing whether markets are good or not good.

Speaker #2: It's based on transaction fees and transaction volumes. What they do is enable large institutions and large holders of digital assets or stablecoins to take bulk positions in and out with effectively predictable pricing.

Speaker #2: I leave the rest to Johan to elaborate.

Speaker #3: Yeah, I can only agree with that for sure. I think all the new initiatives we're doing now are intended for institutional and traditional institutional investors, but also for the traditional infrastructure in terms of banks, prime brokers, and so forth.

Johan Wattenström: Yeah, I can only agree with that for sure. It's, I think all the new initiatives we're doing now are intended for institutional and traditional institutional investors, but also for the traditional infrastructure in terms of banks, prime brokers and so forth. From Stillman services to these type of companies to our funds or UCITS funds, which all are instruments that they are used to, services and products that they're used to utilizing and to allocate into the new asset class of crypto.

Speaker #3: From Stillman services to these types of companies, to our funds are used as funds. Which all are instruments that they are used to service, and products that they're used to utilizing and to allocate into the new asset classes.

Speaker #3: So I think our whole new—and not to forget the custody side, obviously. That's the foundation for building our integration with traditional finance and introducing new types of products from crypto to them, in a format they can and will understand, in the way we will structure this.

Johan Wattenström: I think our whole new and, or not to forget the customer side, obviously, that's the foundation for building our integration with traditional finance and introducing new types of products from crypto to them in a format they can and will understand in the way we will structure this. Yeah, I think we've covered everything I had in mind.

Speaker #3: So yeah, I think we covered everything I had in mind.

Curtis Schlaufman: Cool. Yeah, if I didn't get to your question. Well, let's see. Thanks you guys for the great call. I think it is less of misunderstandings, but rather historic change to financial ecosystem, and DeFi Technologies is on the inside lane on the shift. I'm grateful investor who knows that the path you're on is the right one. You're a beacon to the industry, and I think there's a bright future for DeFi Tech. You've made the right investments to Stillman Digital and Valour. Within the next cycle, we will see these grown in returns in your 29. Great job. No question there. Thanks, Jason. Yeah, everything else in the chat has been basic-effectively addressed. If you want something more specifically addressed, please email me at curtis@defi.tech. Thank you so much for your time today.

Speaker #1: Cool. Yeah, if I didn't get to your question, let's see. Thanks, you guys, for the great call. I think it is less about misunderstandings, but rather a historic change to the financial ecosystem.

Speaker #1: And DeFi Technologies is on the inside lane on the shift. I'm a grateful investor who knows that path. Johan is the right one. You're a beacon to the industry.

Speaker #1: And I think there is a bright future for DeFi Tech. You've made the right investments into Stillman and Valor within the next cycle. We will see this grow and returns in your anti-net. Great job.

Speaker #1: Oh, no question there. Thanks, Jason. Yeah, everything else in the chat has been basically effectively addressed. If you want something more specifically addressed, please email me at Curtis@defi.tech.

Speaker #1: And thank you so much for your time today. If there, again, if there wasn't anything that you want addressed, please reach out: Curtis@defi.tech or ir@defi.tech.

Curtis Schlaufman: If there, again, if there wasn't anything that you want addressed, please reach out curtis@defi.tech or ir@defi.tech. With that, we'll wrap up the call today. Thanks again. See you guys on the next one.

Speaker #1: And with that, we'll wrap up the call today. Thanks again. And see you guys on the next one.

Speaker #2: Thank you.

Andrew Forson: Thank you.

Johan Wattenström: Thank you.

[Analyst]: Goodbye

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