Shares of DeFi Technologies dropped 12.1% after the company reported disappointing margin compression and deceleration in key yields amid a challenging crypto market environment.

• Average assets under management (AUM) declined to a low of $427 million during the quarter, down from $533 million average earlier, reflecting weak market conditions.
• Management fee yield decreased to approximately 1.0%, down from about 1.2%, driven by a higher proportion of Bitcoin products with lower or no fees.
• Effective staking yields fell to 2.5%, impacted by altcoin price declines, lending rate compression on Bitcoin and Ethereum, and significant market volatility.
• Despite generating $11.2 million in revenue and $4.9 million in net income, the quarter’s softness in fee yields and asset pricing weighed on overall profitability.
• The company improved working capital to $47.3 million and highlighted ongoing strategic initiatives, but cautious outlook on near-term market conditions contributed to investor disappointment.