From theblock by Jason Shubnell

Quick Take

Canada-based fintech firm DeFi Technologies (ticker: DEFTF) posted third-quarter earnings Thursday afternoon and one analyst sees brighter skies ahead.

"[T]he tailwinds supporting DEFI’s growth became meaningfully stronger after the end of the quarter when the prospect of a more constructive environment for the crypto industry arising from the outcome of the U.S. elections sent the prices of bitcoin and several other tokens to all-time highs," Benchmark analyst Mark Palmer wrote in a note to clients.

The surge of excitement surrounding crypto has had a big impact on DeFi's platform, Palmer said, as the company’s assets under management jumped nearly 38% after the end of the third quarter, reaching $1.1 billion (in Canadian dollars) on Nov. 13.

DeFi provided full-year 2025 revenue guidance of C$198.6 million, implying the company would generate revenue of C$46.2 million in the fourth quarter, a figure well above Benchmark's estimate of C$26.7 million.

DeFi Technologies posted third-quarter total revenues of C$24.2 million. Its crypto arbitrage trading desk, DeFi Alpha, generated revenue of C$20.6 million, exceeding Benchmark's estimate of C$16 million. This was down significantly from the prior quarter's C$111.5 million.

"[I]t was nevertheless an impressive demonstration of the strategy’s capabilities," Palmer wrote. "Management noted that DeFi Alpha, which has not recorded any losses since its launch in early April, has been assessing a broader array of arbitrage opportunities during the current quarter."

Ahead of its earnings release Thursday, DeFi Technologies announced the upcoming launch of CoreFi Strategy, a public company designed to provide investors access to Core, a prominent bitcoin staking and decentralized finance (BTCfi) blockchain. Inspired by MicroStrategy, it will engage in the accumulation and dual-staking of Core tokens and bitcoin in its corporate treasury while also employing various financing strategies to boost its treasury holdings.

"Core has positioned itself as the most bitcoin-aligned blockchain, as it offers investors the ability to generate yield on their bitcoin holdings through non-custodial staking, including its dual-staking integration through which investors who stake both bitcoin and Core tokens can generate even higher yields on their holdings," Palmer wrote. "DEFI’s Valour subsidiary earlier this year launched the first yield-bearing bitcoin exchange-traded product (ETP), which uses Core’s bitcoin staking product to provide investors with both exposure to bitcoin’s price appreciation and a yield of 5.65%."

Palmer reiterated an "overweight" rating on the stock and raised his price target to C$5.