DeFi Technologies CEO: The main reason for the stock price decline is the weakness in the crypto market, with a strong balance sheet

Foresight News reported that Nasdaq-listed company DeFi Technologies (Nasdaq: DEFT) CEO and Executive Director Johan Wattenström has issued a letter to shareholders in response to the recent stock price decline. Wattenström stated that the stock performance is mainly influenced by weakness in the crypto market, capital rotation out of the crypto stocks sector, and technical factors related to the recent round of financing. The company currently has a balance sheet of approximately $150 million (as of the end of the first quarter), is profitable with almost zero debt, and is in a more favorable position compared to the previous bear market (when the share price fell below $0.10 and the company carried over $40 million in debt).

The letter mentioned that the company's first hedge fund is about to launch, with plans to expand the scale of arbitrage strategies in the second half of the year. The Swedish Financial Supervisory Authority (Finansinspektionen) has rejected the application for a crypto-related asset UCITS structure, and the company has filed an appeal while also planning to set up 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 M&A opportunities and clarified that there are currently no plans for a reverse split; this option will only be used if necessary to ensure compliance with Nasdaq rules, and 73% of shareholders have previously voted in favor of retaining this option.