Can you please elaborate on this company.
It sounds quite interesting as a financial technology company.
I'm unsure how relative this space will be going forward.
Please enlighten.
Thanks
Cal
DEFI has four highly scalable business lines, including asset management, venture capital, research, and trading. Its asset management business (Valour) had $1.4B in AUM. The company earns sales on AUM, trading flow, and lending and staking. It offers ETPs (Exchange Traded Products) for various niche crypto assets like XRP, SUI, DOGE in Europe. DEFI also holds various digital assets on its balance sheet ($29M of BTC, $4.3M of SOL, $0.4M of ETH, and $17M of AVAX).
It's fairly diversified across different business lines, however, it is highly dependent on the crypto markets. If digital assets continue to rise, this can benefit DEFI, however, a reversal in this market would be challenging for DEFI to navigate. We like its momentum, its variety of business lines, and overall we think it is positioned well here.