DeFi Technologies Posts ($1.9) Million In Revenue, $4.9 Million Adjusted Net Loss For Q2 2021

DeFi Technologies Inc. (NEO: DEFI) announced today its financial results for Q2 2021. The company recorded a negative $1.9 million revenue for the quarter.

The figure is impacted by realized losses on digital assets amounting to $4.0 million and unrealized losses on investments amounting to $2.3 million; the latter includes an unrealized loss of $1.8 million related to its investment in Hive Blockchain (TSXV: HIVE). Calibrating for the unrealized loss in the company’s equity position, the adjusted revenue for the quarter came in at $0.4 million.

The fintech firm also reported an adjusted net loss of $4.9 million. The figure comes from a reported net loss of $12.2 million adjusted to reflect financial expenses and a $6.3 million share-based compensation.

“For a company that is experiencing our type of double-digit growth and with the investments and expenditures we have made, it is a great result to see such a small loss in the period and shows that we remain exceptionally well-capitalized,” DeFi Technologies CEO Wouter Witvoet commented on the quarterly results.

The company’s balance sheet recorded a total current and futures available asset balance of $40.3 million, composed of $9.2 million in cash, $19.5 million in liquid public investments, $0.9 million in crypto holdings, and $10.6 million in private company investments, among others.

The firm also touted that the total asset under management in the wholly-owned subsidiary, exchange-traded notes platform Valour Inc., rose to $107 million during the quarter. The latter’s contribution to the topline revenue for the quarter came in at $2.6 million which the company recognizes as a potential in yielding an annualized recurring revenue of $10.3 million.

In June 2021, the company announced its intent to partner with Arcane Crypto to launch an exchange-traded product with a cryptocurrency fund as its base.

DeFi Technologies last traded at $1.49 on the NEO.

Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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