The letter came as DeFi Technologies’ share price has dropped about 23% over the past month, as of Monday morning, according to Google Finance, and after the company’s UCITS structure for crypto-related assets failed to secure approval from the Swedish FSA, according to the letter.
Wattenström said in the letter that DeFi Technologies takes the share price decline very seriously. He attributed the decline to the weak crypto market, sector rotation out of crypto equities and one-off technical factors related to the company’s capital raise.
DeFi Technologies saw a similar decline during the 2022-2023 crypto bear market, Wattenström said.
“Today, the company is considerably better positioned in this crypto bear market than it was in the previous cycle,” Wattenström said. “DeFi Technologies delivered record revenue and net income in 2025, has a fortress balance sheet of approximately $150 million as of the end of Q1, is profitable, has effectively zero debt, and now operates a more diversified platform across Valour and Stillman.”
Valour, which includes Valour Inc. and Valour Digital Securities Limited, issues exchange-traded products that enable investors to access digital assets. Stillman Digital offers liquidity solutions for businesses, according to the press release in which the letter was shared.
DeFi Technologies continues to invest across both its core business areas and new ones, while also reducing costs, Wattenström said in the letter.
The company expects to launch its first hedge fund “very soon,” plans to scale its arbitrage strategies during the second half, has appealed the FSA’s decision on the UCITS infrastructure, is establishing that infrastructure elsewhere in the European Union, is advancing the Valour Custody platform, is seeing growth in Stillman Digital, and is pursuing large-scale acquisitions, he said.
Wattenström said in the letter that he has “never been more confident in our trajectory” and that “we are working diligently every day to build a world-class company and rebuild shareholder trust and value.”
PYMNTS reported Thursday (July 23) that BitMEX announced that it decided to close its cryptocurrency exchange after conducting “a strategic review of the business and the broader crypto industry.”
A day earlier, on Wednesday (July 22), SecondFi announced that it would shut down its cryptocurrency wallet following an attack that stole $2.4 million from its users.
