DeFi Technologies CEO Attributes Stock Price Drop to Weak Crypto Market
DeFi Technologies CEO Johan Wattenström addressed the decline in stock price in a letter to shareholders, stating that it was primarily influenced by the weak crypto market, rotation out of crypto stocks, and technical factors related to financing. The company's balance sheet remains strong, with approximately $150 million (as of the end of the first quarter), having achieved profitability and nearly zero debt, which is a more favorable position compared to the $40 million debt during the last bear market. The letter mentioned that the company's first hedge fund is set to launch, with plans to expand arbitrage strategies in the second half of the year. The Swedish Financial Supervisory Authority has refused to approve the UCITS structure application for crypto-related assets, and the company has appealed this decision, planning to establish a UCITS platform in other regions of the EU. The Valour Custody platform is expected to launch in the second half of the year. Wattenström also stated that the company is actively seeking large-scale acquisition opportunities, clarifying that there are currently no plans for a share consolidation, and that this option would only be activated if necessary to ensure compliance with Nasdaq rules, with 73% of shareholders voting in favor of retaining this option.
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