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  5. DEFI: Hi 5i Team - When searching the symbol DEFI I get two results for Defi Technologies, one in Canada and one in the U. [DeFi Technologies Inc.]
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Q: Hi 5i Team - When searching the symbol DEFI I get two results for Defi Technologies, one in Canada and one in the U.S. Does the one in Canada trade on the OTC and therefore would it be preferable to buy it on the U.S. exchange. There seems to be very little info on this company. Could you provide a summary of its operations and fundamentals including your opinion of its potential.
Asked by Rob on February 13, 2025
5i Research Answer:

DEFI trades on the NEO exchange, and our database supplier does not yet provide financial data or prices for the NEO exchange. DEFI does trade OTC on the US exchange under DEFTF. 

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.