Defi Technologies, Inc.

Beliefs and estimates are forward-looking statements. These statements may include, without limitation, any statements preceded by, followed by, or including words such as target, believe, assume, expect, commit, aim, intend, may, anticipate, foresee, see, estimate, plan, project, will, is, focus, can, have, likely, should, would, could, continue, and other words in terms of similar meaning or the negative thereof. Others can be identified from the context in which the statements are made. Forward-looking statements give the company's current expectations and views of future developments in light of the current experience and perception of historical trends based on numerous assumptions regarding the company's present and future business strategies and the environment in which it will operate in the future. Although the company deems such forward-looking statements to be reasonable, assurance can be given that they will be proven correct. The forward-looking statements are not guarantees of the future developments and results mentioned therein. Forward-looking statements involve known and unknown risk uncertainties and other factors such as, but not limited to general economic and industry conditions, which are in the same cases beyond the company's control, which may cause actual results to material materially differ from the expressed in such statement. The statements are made as per the date of the presentation and the earnings call, and the company does not assume any obligation to review, update, or confirm any forward-looking statements contained herein, except to the extent legally required. With that, I'll hand it off to our CEO, Olivia Rusi-Newton.

Thanks everyone for joining us on this Q3 webinar. I'm excited to have you all here and very, very excited for presenting what we've been up to as a company in this very fast moving, fast paced world, political, world and macro asset class that we're associated with in the form of digital assets. Curtis, can we go to the next slide here? So yeah, this should be kind of a self-explanatory, but we are DeFi Technologies and we are situated connecting the traditional capital markets with a rapidly evolving high-growth world of decentralized finance and Web3. Through our wholly-owned subsidiaries, venture portfolio, trading desk, treasury strategy, and industry partnerships, we enable traditional investors to seamlessly tap into the extensive and fast-growing $3 trillion sector in a regulated manner. DeFi as a public company has been operating for four years. Valor, our main subsidiary, Johan and myself have been working on for just around eight years. To date, we have 28 exchange-traded products and adding to those very quickly. in DeFi technologies. Our 2024 year state net income in Canadian dollars is 97.2 million. You know, our market cap's hovering around $90 million. We have a founder-led team, as I explained, Johan and myself have been at our core subsidiary of Allure for just around eight years and at DeFi, the public company, for about 15 years. on this phone call. We have a diverse business line, but very cross-complementary in the form of ETPs, trading, infrastructure, research and more. Our diversified revenue model provides broad exposure to the wave of blockchain-based assets, services and applications. forward, strong balance sheet as of now, and looking forward to taking a lot of our business units into international expansion. And we continue to look at strategic acquisitions to expand and propel further growth. Curtis, I think we can flip to the next slide here. So here's a kind of quick snapshot and visual representation of our key financial and business metrics. Our book value as of now is $139.2 million Canadian. As I mentioned in the last slide, year-to-date net income, $97.2 million. Earnings per share is, as of September, 30th, 33 cents a share. Assets under management as of a day ago is $1.1 billion Canadian. Our year to date net revenue is $152.4 million. And we've revised our guidance on forecasted revenue for 2024 to sit just under $200 million at $198.6 million Canadian. there's a little asterisk there, but projections based on current asset prices and does not account for additional gains in DeFi Alpha and our other business units. So to kind of give everyone kind of a bit of an explanation in terms of a visual representation of where DeFi technology kind of sits and it's wholly owned business units. I'll start off with our kind of joint ventures, Bitcoin Suisse. We've We've partnered with them on a number of exchange-traded products. Neuronomics, a very interesting and long-standing history developing artificial intelligence technologies applied to asset management and specifically digital assets. Hive, a company I founded in 2017, we have a partnership with them and we execute for cross-exposure and collaboration. Zero Computing, a company we recently signed a partnership with to explore and develop new technologies that benefit our trading stack that I can go into in a bit later in more detail, and Professional Capital Management, a business set up by Amplify, our products, technology offerings in the fast kind of changing regulatory environment in the United States. Our wholly owned subsidiaries include Reflexivity Research, which has been a great addition to our offerings where we basically kind of correspond and also gives us as a firm a lot of insight into trends, potential trading opportunities in the form of DeFi Alpha. So we're very fortunate to have that part of a fast-growing research firm, kind of a great kind of cornerstone company that gives us a lot of data to make actionable decisions across our other subsidiaries. We're kind of, you know, fortunate to have finalized recently our full acquisition of Stillman Digital, which is a very fast growing team, I think, you know, led by some formidable younger savants in the led by kind of their expertise in technological trading in a very competitive marketplace. But we are enthusiastic that that transaction closed, took a bit of time with the various regulatory licenses to be essentially amalgamated within our parent company. But we're excited that's done. Subsidiary and operating asset continues to expand and lead the charge in innovative exchange-traded products, which we'll obviously touch on a bit later. Our partially owned stake in Aminabank, which seems... both of their assets under management and continually are seeking and getting approvals globally for operating banking services in the Middle East, Hong Kong and Singapore. DeFi Alpha, our rather new business unit compromising around trading activities, which has been off to a great start. And I know we get a lot of questions about guidance and how often, how frequently we perpetual or nature of our training occur, which we'll touch on a little bit later within the presentation, but we are, you know, we, risk at DeFi Alpha. So there's never losses and things of that nature, but we are kind of algorithmically and with human intervention, always assessing trades and hope to have a few more under our belt to be able to provide, I would say, our shareholders a better glimpse of what that looks like kind of going into the future. We have our DeFi Ventures portfolio that's been active. I would say our primary mandate of our venture portfolio is to take stakes in innovative companies that we either directly see a financial return on or that we can basically foster into a relationship and be the first to bring them to the market in the form factor traded products and or other institutional wrapper offering through Velour. So it kind of cross pollinates across our subsidiaries. And I think you'll find all of them do. And then we have kind of one of our old nodes for Solana, Pyth, Core and assessing others as we kind of go into these markets. But it's a profitable business unit and also gives us a bunch of proprietary understandings of how these blockchain operates and growth perspectives and how to position ourselves within those ecosystems. Curtis, I think we can go to the next slide here. So our specific kind of business lines to give a bit more clarity in numeric form factors. So, yeah, obviously we have, you know, diverse range of scalable businesses, our Velour business unit. yesterday, but just over a billion dollars in assets under management. We've seen that growing very, very quickly this year, not just because of price increases, but seems to be very geared towards new products, investing, diversifying outside of, I would say, the kind of blue chip Bitcoins, Ethereums, top 10 coins. People constantly want new products and we're working tirelessly to get as many new product offerings to the market. There's been a lot of, I would say, somewhat complex infrastructure that we're building out at Velour in the form of our exchange offerings that we can go into more detail. I would say extremely fundamental importance of Valor for new exchange relationships that we've accrued in the last kind of few weeks and months to expedite us being a market leader of bringing ETPs to the markets. Our DeFi Ventures portfolio, as we've seen a kind of robust move in digital assets, stakes in whether it's Amina and other kind of protocols re-rate as we hopefully see digital asset prices rebound. DeFi Alpha, the trust trading desk, has seen kind of great growth and a great start. We continue to work tirelessly on assessing trading opportunities and we can kind of go into the specifics of how that looks. how we assess and execute those trades a bit later. Our revenue, yeah, as kind of mentioned previously, is $132 million to date. And yeah, I think we've touched on what defined infrastructure reflexivity and still mean to the company, but I think conducive manner to overall growth of DeFi technologies. Curious if we can slip to the next slide. So yeah, one company that's growing really quickly in our venture portfolio previously called Ceiba, now called Amina Bank. But I think we led their Series C investment in late 21 when the AUM was about a billion dollars. So that's kind of close to tripled as of now. And that bank is, as I mentioned, getting a bunch of new licenses globally to operate as a digital native crypto first bank. A topical kind of conversation and a large focus of ours is to seek an uplisting onto a major US exchange. In mid-September, we filed our Form 40F registration statement. reach a lot of U.S. institutional and retail investors, global investors that aren't able to, for different reasons, participate in the Canadian market, enhance liquidity and valuation metrics. I'm sure existing shareholders and potentially prospective shareholders are aware we you know, even, you know, very low compared to kind of a normal S&P 500 trading multiple. And obviously within the U.S. capital markets, there is, you know, a bunch of increasing demand. And we've definitely had, you know, an inundation of calls and interests from U.S. ins a top priority for the company. And, you know, given the recent election results, pro-crypto stance, I believe Gary Gensler resigned in the last 24 hours, which is a gentleman who definitely didn't make our lives easy for the last few years. So we were very, I would say, optimistic about our prospects. And definitely, you know, hopefully these get found for those in Canada. So to give a detailed rundown of our financial highlights of Q3, the company reported cash and USDT, which stands for Tether, one-to-one stablecoin balance of approximately 25.4 million Canadian dollars, up from 6.1 million on The company's holdings also included 204 Bitcoin, 81 Ethereum, 246,000 ADA, which is the ticker for Cardano, 86,616 DOT, which is Polkadot, 5,745 Solana. Robert Alverson- 491 uni, which is a uni swap token 400,033 avalanche tokens and. Robert Alverson- Just under 3 million or 275. 2,755,000 core tokens, totaling approximately to 36 million in digital asset treasury positions as of September 2024, which I would assume have greatly greatly increased in value with the bull run.

And Ollie, do you mind if I just interrupt just quickly there? Everyone who's on the call, everyone needs to understand that the minute we convert our cash into crypto and carry it as crypto assets on our balance sheet, It disappears from our cash flow statements. And there's a lot of commentary that we are not making any money and that our cash flow statement is negative. The reason why that is occurring is that the minute we move anything into a crypto asset, our regulator considers that not as cash. and not as a liquid asset, despite the fact that we could sell it in a millisecond and have that exact cash balance on our balance sheet and on our cash flow statement. So at the end of this quarter, we actually had about 61 million Canadian worth of crypto assets. Obviously, since then, crypto has catapulted higher. I don't have the exact number, but you could look at all of the assets we have, and you'll quickly see that it's probably somewhere closer to 70 or 80 million Canadian that we now have as crypto assets. that we can liquidate and could become cash and sit on our cash flow statement. But it's extremely erroneous for people to make any comments that this is a company that is not making money and has negative cash flow earnings. It is solely because the regulator views crypto not as cash. I just wanted to throw that in there because it's a consistent theme that I continue to hear. And I think it's just as a result of people not understanding the regulatory environment in Canada. Sorry to interrupt, Ollie. And thank you, everyone, for listening.