Canada's DeFi Technologies Q2 revenue falls amid challenging digital asset market conditions
Canada's DeFi Technologies Q2 revenue falls amid challenging digital asset market conditions
Overview
Canada digital asset platform's Q2 revenue fell yr/yr to $7.8 mln
Operating loss widened to $2.3 mln from $0.9 mln a year ago
Company maintained strong balance sheet with about $135 mln in cash, digital assets, and ventures
Outlook
Company says digital asset market conditions remain challenging
DeFi Technologies is actively seeking large-scale acquisition opportunities
Company continues to invest in new products and technologies to broaden revenue base
Result Drivers
WEAK DIGITAL ASSET MARKETS - Co said challenging digital asset market conditions contributed to lower revenue and wider operating loss
VALOUR INFLOWS - Valour generated $22.8 mln in net inflows despite weaker digital asset prices, per CEO Johan Wattenström
STILLMAN DIGITAL GROWTH - Stillman Digital trading commissions revenue rose to $2.5 mln, with larger institutional clients onboarded
Company press release: ID:nCNWzb6S2a
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue |
| $7.80 mln |
|
Q2 Operating Income |
| -$2.30 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the financial technology (fintech) peer group is "buy"
Wall Street's median 12-month price target for DeFi Technologies Inc is C$2.25, about 221.4% above its August 12 closing price of C$0.70
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 12 three months ago
Reuters Recommended Reads
Aug 12 - DeFi Development Q2 revenue rises on digital asset treasury growth
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Aug 12 - Cypherpunk Technologies swings to Q2 profit on Zcash gains
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)
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