DeFi Technologies Reports Valour ETN AUM At $107Million With Liquid Assets Of CA$28.67Million with Q2 2021 Financial Results
DeFi Technologies Inc, announces its strong financial performance for the three and six-month period ending June 30, 2021 since inception (all amounts in Canadian dollars, unless otherwise indicated).
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In Q2 2021 the Company achieved a record of $107M in assets under management (“AUM”) in fully owned subsidiary Valour Inc. (“Valour”) which is responsible for the Company’s portfolio of products of exchange-traded notes (“ETNs”). In Q2 2021, Valour added two new ETNs to the product mix: Polkadot and Cardano – and plan to launch other innovative ETN’s in the very near future. Both are available on the Nordic Growth Market in Sweden (“NGM”). With Bitcoin experiencing volatility especially around May 19, 2021, the Company has seen the product mix of their ETNs diversify with about 50% held in Bitcoin and 50% in Ethereum (launched late in Q1 2021), while the AUM of Polkadot, and Cardano ETN’s continue to grow.
“Despite the volatility experienced in the broad-based weakness in the crypto and decentralized finance markets around May 2021, we have seen strong demand and inflows into our Valour business, which is really promising. Diana and the team have done an excellent job attracting new investors into these products and the tech and trading team in Zug have shown that even in high volume days our infrastructure and processes are up to the task.”, said Wouter Witvoet, Chief Executive Officer of DeFi Technologies.
ETNs / Valour
The Company is pleased to announce that its ETN business Valour has grown its AUM to $107M in AUM at the end of Q2 2021. The total revenue derived from the Valour business was $2,586,742 for the quarter, implying a potential $10.3M in annualized recurring revenue off of Valour’s relatively small but growing asset base.
Liquidity
The Company maintains a very strong liquidity position. Cash and liquid assets at the end of Q2 2021 stand at CA$28.67M, with an additional $0.9m in crypto investments. With recent increases in share prices of some of its public investments, this value is expected to be significantly higher in the coming months provided that such public investments maintain or increase their value.
| DEFI – in CAD millions | 6 months ended |
| June 30, 2021
(C$) |
|
| Balance Sheet | |
| Cash | 9.2 |
| Public Investments | 19.5 |
| Crypto holdings | 0.9 |
| 29.6 | |
| Private company investments | 10.6 |
| Locked in Crypto | 0.1 |
| 10.7 | |
| Total current and futures available assets (June 30) | 40.3 |
| Total current and futures available assets (Current) | 45.8 |
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Financial performance
The Company have total revenue of $(1.9)M for the three months ended June 30, 2021. Backing out the mark to market loss on the Company’s equity positions of $(2.3)M, including the unrealized loss of $1.8M on HIVE Blockchain Technologies investment, the Company had total revenues of $0.4M in a weak cryptocurrencies market period.
| Revenues – in CAD millions | 3 months ended | |
| June 30, 2021 | ||
| ETP trading | $ | 2,504,214 |
| Other trading income | $ | 16,572 |
| Lending income | $ | 65,956 |
| Realized (loss) on digital assets | $ | (3,950,265) |
| Unrealized (loss) on digital assets | $ | (48,119,403) |
| Unrealized gain on ETP holders | $ | 49,823,748 |
| Realized gain (loss) on investments, net | $ | 10,073 |
| Unrealized (loss) gain on investments, net | $ | (2,274,452) |
| Interest income | $ | 3,130 |
| Total revenue | $ | (1,920,427) |
| less Unrealized (loss) gain on investments, net | $ | 2,274,452 |
| Adjusted revenue (non-IFRS) | $ | 354,025 |
The total corporate loss of the period ending June 30, 2021, was CA$2.7M. There were also intangible losses such as acquisition loss costs (Valour) and change in token prices (Bermuda) loss as well as option issuances to core employees and contractors.
| DEFI – in CAD millions | 3 months ended | 6 months ended |
| June 30, 2021 (C$) | June 30, 2021 (C$) | |
| Reported Net Loss | -12.2 | -19 |
| Less: | ||
| DeFi Holdings transactions costs | 0 | 6 |
| Amortization of intangibles | 1 | 1.2 |
| Share-based compensation | 6.3 | 8.3 |
| Adjusted Net loss: | -4.9 | -3.5 |
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