Hashdex Bitcoin Futures ETF Price & Performance (DEFI)

The statements are made per the date of the presentation and earnings call, and the company does not assume any obligation to review, update or confirm any forward looking statements contained herein except to the extent legally required. With that, I'll hand it off to our CEO, Olivia Broussenew. Thanks, everyone, for joining us on this Q3 Q3 webinar. Excited to have you all here and very excited for the presenting what we've been up to as a company in this very fast moving, fast paced world political world and macro asset class that we're associated with in form of digital assets. Curtis, can we go to the the next slide here? So, yes, this should be kind of kind of a self explanatory, but we are, DeFi Technologies, and we are situated connecting the traditional capital markets with rapid evolving high growth world of decentralized finance and Web3. Through our wholly owned subsidiaries, venture portfolio, trading desk, treasury strategy and industry partnerships, we enable traditional investors to seamlessly tap into the extensive and fast growing $3,000,000,000,000 sector in a regulated manner. DeFi as a public company has been operating for 4 years. Alor, our main subsidiary, Johan and myself have been working on for Just around 8 years, to date, we have 28 exchange traded products and and adding to those Very quickly, for integrated business units, within DeFi Technologies our 20 24 year stated net income in Canadian dollars is $97,200,000 Our market caps hovering around $90,000,000 Johan and myself of been at our our core subsidiary Valor for just around 8 years.

And that DeFi, the public company for about 4 years with a lot of the people on this phone call. We have a diverse business line, but very cross complementary in the form of ETPs, trading, infrastructure, research and more. Our diversified revenue model provides broad exposure to the wave of blockchain based assets, services and applications. And I think as a business, we have a very clear path forward strong balance sheet as of now and looking forward to taking a lot of our business units into international expansion And we continue to look at strategic acquisitions to to expand propel further growth. Curtis, I think we can flip to the next slide here. So here's a kind of, quick, snapshot and visual representation of our key financial and business metrics, our book value as of now is CAD139.2 million As I mentioned in the last slide, year to date net income $97,200,000 Earnings per share is as of September 30th $0.33 a share. Assets under management as of a day ago is CAD1.1 billion Our year to date net revenue is 150 $2,400,000 and we've revised our guidance on forecasted revenue for 20.24 to just on your $200,000,000 at CAD198.6 million And these there's a little asterisk there, but projections based on current [indiscernible] and does not account for additional gains in DeFi Alpha and our other business units.

So to, you know, kind of give everyone kind of a bit of an explanation in terms of a visual representation of where DeFi Technology kind of sits in its wholly owned Business units. I'll start off with our kind of joint ventures. Bitcoin Suisse, We've I think 1 of the largest and oldest Swiss digital asset companies we've partnered with them on a number of exchange traded products. And uroeconomics, a very interesting and long standing history developing artificial intelligence technologies applied to asset management and specifically digital assets. [indiscernible] the company I founded in 2017, We have a partnership with them and we [indiscernible] For cross exposure and collaboration, 0 computing company we recently signed a partnership with to explore and develop The new technologies that benefit our trading stack that I can go into in a bit later. In more detail and professional capital management a business set up by Anthony Pomfleano to explore [indiscernible] products, technology offerings in the the fast kind of changing regulatory environment in the United States. Our wholly owned subsidiaries include Brex [indiscernible] which has been a great addition to our offerings where we basically kind of correspond our product offerings Vlore with industry leading research and also gives us as a firm a lot of insight into As you trends, potential trading opportunities, in the form of DeFi Alpha.

So we're we're very fortunate to have that part of a fast growing research firm kind of a great kind of cornerstone company that gives us a lot of data to make actionable decisions across our other subsidiaries. We're kind of fortunate to have finalized recently our full acquisition has still been digital. Which is a very fast growing team I think led by some formidable younger savants in the market making space. Have carved out a very very unique proposition led by kind of their their expertise in technological trading in a a very competitive marketplace, but we are our enthusiastic that that transaction closed, took a bit of time with the various regulatory licenses to be essentially amalgamated within parent company, but we're excited that's done. Valor, of course, our kind of largest subsidiary and operating asset continues to expand and lead the charge in innovative exchange traded products. Which we'll obviously touch on a bit later. Our partially owned stake in Immunabank, which seem rapid growth of their assets under management and continually seeking and getting approvals globally for operating banking services and in the Middle East, Hong Kong and Singapore. Off to a great start and I know we get a lot of questions about guidance and how often, how frequently we see The kind of perpetual or or nature of our trading occur, which we'll touch on a little bit later.

Within the presentation, but we are it's important to note that we don't take any risk at Defy Alpha. So there's never losses and things of that nature, but kind of algorithmically and with, you know, human invent intervention always assessing trades and hope to have a few more under our belt to be able to provide I would say, the our shareholders a better glimpse of of what that looks like kind of going into the future. We have our DeFi Ventures portfolio that's been active. I would say our primary mandate of our venture portfolio is to take stakes in innovative companies that we either directly see a financial return on or that we can basically foster into a relationship and be the first to bring them to to the market in the form factor of an exchange traded product. And or other institutional wrapper offering through Valor. So it kind of cross pollinates across our subsidiaries. And I think you'll find all of them do. And then we have, 1 of our oldest [indiscernible] basically business units, which is infrastructure, and we've been running nodes for Solana, PIEF, Core, and assessing others as we as we kind of go into these markets, but it's a profitable business unit and also gives us a bunch of proprietary understandings of how these blockchain operates and growth perspectives and and how to position ourselves within those ecosystems.

Curtis, I think we can go to the next slide here. So our specific kind of business lines to give a bit more clarity in in numeric form factors. So, yeah, obviously, we have diverse range of scalable business [indiscernible] which I think Burkhov reiterating numbers, but as of the day before yesterday, but just over $1,000,000,000 in assets under management. We've seen that growing very, very quickly this year. Not just because of price increases, but aggressive inflows into a number of products into an ever expanding portfolio of products that are Our client base seems to be very geared towards new products, investing, diversifying, outside of, I would say, the kind of blue chip [indiscernible] people constantly want new products and we're working tirelessly to get as many new product offerings to the market. There's been a lot of, I would say, somewhat complex infrastructure that we're building out at Filore in the form of our exchange offerings that we can go into more detail as of later, but it is definitely kind of I would say extremely fundamental importance of Valor for new exchange relationships that that we've accrued in the last kind of few weeks months.

To expedite us being a market leader of bringing ETPs to the market. Our Defy Ventures portfolio, you know, as we've seen a kind of robust move in in digital assets continues to grow and we'll hopefully see these these stakes in whether it's Amina and and other kind of protocols rerate as we hopefully see digital asset prices rebrand [indiscernible] [indiscernible] has seen kind of great growth and a great start. We we can [indiscernible] trading opportunities and we can kind of go into the specifics of how that works and specifically kind of around how we assess and execute those trades, a bit later. Our revenue, yeah, as Ken mentioned previously, is 132,000,000 dollars to date. And yes, I think we've touched on what DeFi infrastructure reflexivity instilled in, mean to the company. But I think a great way to think of all these these various business units is they all coexist and cross pollinate in a very [indiscernible] manner to overall growth of DeFi Technologies. Curtis, if we can slip to the the next slide. [indiscernible] 1 1 company that's growing really quickly in our in venture portfolio is is previously called Ceva, now now called Amina Bank.

But I think we let their Series C investment in late 2021 when the AUM was $1,000,000,000 So that's kind of close to triple as of now. And that that bank is, as I mentioned, getting a bunch of new licenses globally to operate as a digital native crypto first bank An article kind of conversation and a large focus of ours is to seek an uplisting onto a major US exchange in mid September, we filed our Form 40F registration statement. This is primarily to you know, basically reach a lot of, US institutional and retail investors, global investors, that aren't able to for different reasons participate in the Canadian market. Enhanced liquidity and valuation metrics. I'm sure existing shareholders and potentially prospective shareholders are aware we very low multiple even very low compared to kind of a normal S and P 500 trading multiple. And obviously, with within the U. S. Capital markets, There is a bunch of increasing demand and we've definitely had an inundation of of calls and interests from from U. S. Institutions looking to support us as we cross the chasm from the Canadian marketplace into into the US marketplace and what I can comment on this is, we're it is definitely a top priority for the company.

And given the recent election results, pro crypto stance, I believe Gary Gensler resigned in the last 24 hours, which is a gentleman that we've definitely didn't make our lives easy. For the last few years. So we were Very, I would say, optimistic about our prospects. And definitely you know, hopefully, these get fast tracked with, the the political change in the wind south of the border for those in Canada. So, to give a detailed rundown of our financial highlights of Q3, the company reported a cash and USDT, which stands for [indiscernible] 1 to 1 stablecoin, balance of approximately 20 5,400,000 Canadian dollars, up from 6,100,000 on December 31, 2023. The company's holdings also included 204 Bitcoin, 81 Ethereum, 246,000 ADA, which is the ticker for Cardano, 86,600 and 16 dots, which is Polkadot, 5,745 499 Uni, which is a Uniswap token, [indiscernible] AVALANCH tokens and just under $3,000,000 or 275 2,755,000 core code $36,000,000 in digital asset treasury positions. As of September 20 [indiscernible] which I I would assume have greatly greatly increased in value. With the bull run And Ollie, do you mind if I just interrupt just quickly there?

Everyone who's on the call everyone needs to understand that the minute we convert our cash into crypto and carry it as crypto assets on our balance sheet, it disappears from our cash flow statement. And there's a lot of commentary that we are not making any money and that our cash flow statement is negative, The reason why that is occurring is that the minute we move anything into a crypto asset, our regulator considers that not as cash and not as a liquid asset despite the fact that we could sell it in a millisecond and have that exact cash balance on our and on our cash flow statement. At the end of this quarter, we actually had about 61,000,000 Canadian worth of crypto assets. Obviously, since then, crypto has has catapulted higher. I don't have the exact number, but you could look at all of all of the assets we have and you'll quickly see that it's probably somewhere closer to CAD 70,000,000 or CAD 80,000,000 that we now have [indiscernible] crypto assets that we can liquidate and could become cash and sit on our cash flow statement. [indiscernible] it's extremely erroneous for people to make any comments that this is a company that has is not making money and has negative cash flow earnings.

It is solely because the regulator views crypto not as cash. Just wanted to throw that in there because it is it's a consistent theme that I continue to hear I think it's just as a result of people not understanding the regulatory environment in Canada. Sorry to interrupt, Oli, and thank you everyone for listening.

Yes, no worries. I'll go on with our venture portfolio. Which we recovered, but investments were valued at $45,100,000 as of September 30th. [indiscernible] total value of cash, treasury and venture portfolio sitting at $106,800,000 as of September 30th. Total revenues were $24,200,000 for the 3 months ended and $152,400,000 for the 9 months ended September 30, 2020 for a significant improvement from the total revenues of 6 $1,000,000 $2,000,000 respectively for the same periods in 2023. Net income was 24 point $24,900,000 for the 3 months ending September 30, 2024, and $97,200,000 for the 9 months ending September 30, 20 24, reflecting robust operational performance. EBITDA was $26,200,000 for the 3 months ended September 30, 2024, and $102,300,000 for the 9 months ended [indiscernible] Valor generated staking lending income of $8,800,000 and management fees of 2,000,000 Canadian dollars Our AUM grew 51 [indiscernible] dollars as of December 31, 2023 to a approximately $77,500,000 as of September 30, 2024. And a record high as of a day ago, to 1,100,000,000 In the last day, Moving on to DeFi Alpha, which is our our specialized arbitrage trading desk, generated 20.6 $1,000,000 with 0 losses to date after reporting 100 and $11,500,000 in [indiscernible] $132,100,000 for the 9 months ended September 30, 2024.

Reflexivity Research, in Q3, q3 generated $261,000 for the 3 months ended September 30, 2024 and $1,100,000 for the 9 months months ended September 30, 2024. So this is, important visual sales, which is obviously kind of increasing and great robustness for our our total business. Johan, I'm not sure if you wanted to comment on on this slide in more detail or what it means from kind of an analytical perspective in terms of the growth of Flora's business.

Yes. I think that maybe the main takeaway from this chart is that if you see the JLR Langer aggregated net sale in dollars [indiscernible] fluctuates with both the market levels, the AUM in our respective products because of the market as a function of the market level, but the yellow line here is actually the net inflow over time aggregated into our products So I think the important observation here is that throughout our whole history, so 2020, we have had almost 0, I think, week on week outflows So as you can see, it's we have inflows even during the during the crypto winter, during the the crash from when Bitcoin went from 69, 70,000 down to 17 16, 17,000. There's been obviously a consolidation phase with smaller inflows. During this time, and we can see, obviously, usually improved inflows on a daily basis now in the bull markets. But as soon as there's more volatility or a better or stronger market, we obviously see this shifting aggressively upwards. But even during the crypto winter and crashes in the market, we see accumulated inflows in the products. [indiscernible] basically, the AUM is considered of of what is very sticky money similar to to what what many funds I can see.

So it's we're quite, and everything we've seen this year including the last month here, yes, makes our conviction harder that this will in the bull market, we see exactly the same patterns and as in earlier bull markets. That the inflows will be massive in relation to in the sideways markets. And obviously, on the top of this, I have daily data from 25 15 from my earlier venture as well. Which shows exactly the same pattern. So sticky money and the constant inflow no matter the market regime, I would say, is main takeaway here.

And look, Johan, 1 question maybe that that the readers or listeners would be really interested in. How many new products do you think we'll be launching by the end of this year? And maybe where do you think we'll get to next year? Just because obviously in a bid crypto market, as you're increasing products, leverage and scale are massive. And And of course, that's assuming nothing changes in terms of Middle East or African launch, just sort of what we'd have [indiscernible] Yeah. For sure. And 1 important point here is where we see the most aggressive inflow at at Ons at the inception is products where we are have the only product in the world where first mover And we are, I think, planning to launch at least 23 products before the end of the year within 3 weeks. I would say that none of these has any EDPs anywhere else in the world. We would have the personal advantage of all of these from the 3 new underlines that we were listed. And we're also in a unique position globally to list new products that are that's most our competitors do not have the infrastructure or the exchange partnerships that's needed to both supply the market making or the access to these exchanges.

So I think we are extremely hopeful that these handpicked 23 tokens that are also both sports in the world, but also projects that we think are really strong and a high hope for a lot of these who also have a partnership with and and hope to be able to do a lot of trades on the back of within the DeFi opportunistic portfolio. So I think we'll see a lot of these new rollouts within the next 2 or 3 weeks.

For the next year, we're also looking at the next generation of products, including certificates, including leveraged products, warrants, and support. Not mentioning just obviously the geographical expansion into Africa, into Middle East and so on, that's that now is very tangible and very close in the future.

And everyone, just like obviously, I'm sort of the 1 speaking to retail and funds on a more regular basis, [indiscernible] you know, if we do our job as and all we have done with Johan and Ollie is do our job, But if we can get another 20 products launched, that's that's 48 products that we'll be transporting to the Middle East and to Africa And if we can do as little as 20,000,000 each of those products, you're looking at an additional almost $1,000,000,000 in AUM in both of those jurisdictions off of off of as little as $20,000,000 in each of those products. And as Johan said, we're not looking to compete with 15 new Bitcoin products. We're looking at DeFi protocols that are 1 of a kind For example, Sui, which is being 1 of our best performers Core, which is being 1 of our best performers, that no 1 else has even contemplated launching. And so when you look at that type of expansion just in Europe, but also then transporting all of those products to the Middle East, all of those products to Africa, And of course, we're going to look at Asia. Of course, we're going to look at Latin America.

And quite frankly, in the right economic and regulatory environment in the U. S, Johan, is it far fetched as an idea that we We might [indiscernible] to the U. S. Some of these products BlackRock, Vanguard, Fidelity, they're not even going to care to compete with us on it. Is that a fair statement?

Yeah. Sure. We're already in discussions on structured for that purpose. And I think on the back of our European operation, we are well placed to be first movers on a lot of these assets for sure and do unique products for that marketplace rather than meeting with everyone else on Bit Bitcoin for extremely low monetization rates. [indiscernible] No.

Thank you. I just wanted to make sure that was clear for our listeners. I I think 1 of the biggest infrastructure related decisions we made that came from Johan was moving all of our products in the Nordics over to an exchange called the Spotlight Exchange. Where we have very good alignment with the majority of the shareholders and founding team. Before our products were listed on the Nordic Growth Market, which would I would say was not as aligned with us, in terms of our goals and potential outlook on digital assets assets. So this allows to this allows for us to essentially kind of promulgate our product initiatives extremely quicker, save costs, and also have market first products on a internationally recognized and changed which allows us to have competitive [indiscernible] to kind of passport our prospectuses which is the technical terminology for taking our Euroclear European Union approved products and bringing them into the Middle East. Asia and other jurisdictions that we're looking to and I think that's a huge competitive competitive edge for Vor and our new products going forward. So yes, this is an overview of our increasing kind of range of products that we continue to expand into.

I think kind of just you know, to give people an idea of what people are after, from I think probably around 200,000 or a little bit less than 200,000 clients of lower, we received a lot of product requests, and things of that nature, but we, try to offer what will be I think Black by the end of the year, the largest diversified regulated exchange traded product portfolio in the world. And continue kind of putting out innovative new products into the marketplace. And obviously, these are a few other ones and anyone looking for you know, further information, overviews on these products, can find them on valor.com. So, let's get into our growth outlook for q4.

Valor's ETPs have witnessed over a 900% increase in AUM the market lows in late 2022 alongside growth in trading volumes, Valeura's AUM stood a record high at 1,100,000,000 As of November 13, 2024, annualized revenue and the company is staking and lending impairment changes gains and losses on digital assets and ETP payables. As well as management fees. Are closely correlated with capital inflow for Golar's ETA the price of digital assets underlying floors ETPs which has continued to grow since the end of 2023. Furthermore, revenue from arbitrage and liquidity provision is highly linked to overall market activity and turnover in Fluor's listed ETPs. The company formed DPhi Alpha in Q2 2020 24, which generated approximately $132,100,000 as of September 30, 2024. Given these factors, the company's annualized revenue is forecasted to be approximately $198,600,000 for 20 24. Further arbitrage opportunities and growth in Valor AUM may lead to proportional increases in revenue. We continue to evaluate additional DeFi which if executed will drive revenues and net income higher. Valor, our real main focus is obviously, as we alluded to earlier, [indiscernible] bringing those products through this passporting prospectuses to new geographies. So and 100 by 2025 alongside product growth We're seeking regulatory approvals to enter markets in North Africa, Asia, the Middle East and other emerging regions providing secure digital asset access to new investors, Our newly acquired business units still in the digital lines to expand into custody, foreign exchange and proprietary trading with projected 2024 revenue at US6.7 or Canadian 9.3 menu, million at a 50% average net margin reflecting 127% average annual growth over the past 2 years.

Major technology upgrades set for Q1 2025 were in enhance competitiveness and enable further growth through DeFi Technologies' distribution network and strategic partnerships. On to kind of balance sheet related matters, elimination of debt as of October 16th 2024, Laura has successfully eliminated all outstanding debt The achievement culminated with the final repayment of CAD5.5 million on October 16th, bringing a total debt reduction of US36.5 million dollars which is Well over $50 something 1,000,000 Canadian So we're quite quite glad to have done that as a company without, substantial dilution to our shareholders.

And internalize that through our revenue producing business lines. While the war is now debt free, DeFi technology [indiscernible] with Genesis Global Capital. The balance is expected to be resolved upon the of Genesis' bankruptcy proceedings. And to touch on that, we've we've already received a chunk of that and are hopeful as things proceed through the courts in an expedited fashion we will be kind of remunerated promptly here. And Ryan, I'm not sure if you wanted to touch on on that process specifically or give any further clarity than what's stated.

No, I can't. Yeah. How does the process is working?

We originally had a collateralized loan with 475 Bitcoin there. In Q3, we did receive 95 Bitcoin back, so reducing the collateral down to 380. It continues to run through the process as they pays out its liabilities and settled its claim. Our legal team in the U. S. Is constantly in touch with to let us know developments. And as Oli mentioned, we're hoping to receive more recovery in Q4 and as Q4 and in the future as As the state settles off everything.

So as alluded to earlier, geographical expansion is hand in hand with product innovation as probably our number 1 priority as a company and specifically under Fluor, our largest operating subsidiary. We had a milestone launch in London in October on the on the LSC, the London Stock Exchange, and we are actively working on other products there In the U. S, we announced a joint venture with Anthony Pomkliano's firm Professional Capital Management Not to leave out kind of my home country, Canada, but we are actively working on initiatives there and market first products, which we will keep people aware of. To think of this kind of world map, we're actively pursuing opportunities with digital now that the U. S. Is obviously kind of more digital asset friendly and we see that going into the future, Lots of places in the Middle East are as well Asia, Hong Kong, Singapore, Korea, Japan recently approved legislation on digital asset products on the Nikkei Stock Exchange. And we've seen kind of a lot of interest in low export our products globally and as I explained earlier, our partnership with the Spotlight Exchange in Sweden is very important for this to achieve market first product listings in all of these new geographies.

That are that are enabled through the recognition of this leading kind of [indiscernible] stock exchange. And I think it's important to note also Yohan first listed XBT provider in 2015. On a Swedish Stock Exchange. So as we have discussions with new new counterparties and exchanges, whether it be in Brazil, Middle East, [indiscernible] UAE, Singapore, all of we have great track record that expands a decade plus now [indiscernible] operating history or will be a decade at the conclusion of this fiscal year. So we can confidently say that we have the larger skill set and team that has successfully managed the 1st exchange traded digital asset product and continues to innovate market new products as we expand into these geographies. So, you know, our product roadmap as I've mentioned and growing And as Johan pointed out, very sticky customer base. At Vlore. So we are outside of digital [indiscernible] also exploring other thematic multi assets Investment vehicles of various constructs to accommodate various sorts of institutions. And there's a bunch of types of exposures that we're also exploring and actively managed strategies through our AMC program. And Joanna, I'm not sure if you wanted to kind of touch on you know, what you're seeing in the fast growing fund management space, but obviously our main business in the form of these ETP form factors is growing quite diligently on regulatory prospectus is to encompass new product offerings.

So maybe you wanted to touch on that and what you've been up to.

Yeah. For sure. So we've seen a great demand from a lot of funders and asset management asset managers to allocate into alpha type [indiscernible] Into other types of return distributions and products. So on the base of this, obviously, we're going to launch actively managed certificates as 1 means of distributing these type of strategies. Both some of these are obviously from in house, others are in in collaboration with partners and other asset management, we are looking to partner up deep more deeply or or acquire or also has a spin off of some of the strategies we work with [indiscernible] Particularly those that are, that are scalable to to a huge scale for sure. And we're looking not only at ACMs, but also at funds and the all types of vehicles that make this possible for all types of institutions invest Obviously, most can invest in EBTs, but, quite a lot of these [indiscernible] ticket type of institutions once they invest in fund ETFs or active management certificates managed accounts or other vehicles, which also includes tokens which might be based on actively managed strategies. So these are few of those we're looking into launching in the near Thanks, Yaron.

Yeah. As of that, this week, we've recently [indiscernible] Sulfide Technologies along with CoreFi Strategy Corp.

I really think the genesis behind These 2 new initiatives culminate from obviously, our kind of very close exposure to to the Solana ecosystem So I'll start with Sulfide Technologies. So we've seen obviously MicroStrategy develop a compelling business model leveraging capital markets to essentially and efficiently acquire large amounts of Bitcoin, which they're extremely bullish on. As a company that has Solana validator nodes, proprietary trading technologies, we've seen the opportunity to partner with institutions essentially to set up our own Our our own initiatives that will be, you know, essentially spun out of of of DeFi Technologies as a company.

We will be definitely, elaborating on structures and then what that means to shareholders, but I think kind of an analogy given we're listed in Canada is typically a gold mining company potentially kind of comes across a silver asset on their, mining field or block of commodities and and spins that out into a new company. We're extremely proud at DeFi Technologies of being differentiated in the form of not having a large CapEx running business the ability to, you know, return a lot of money to our shareholders And so as we are approached by institutions foundations, You can kind of think of this as a similar kind of business line to what we do with Valor where we work specifically with foundations to develop, incubate and launch compelling products in ETP form factors we see a lot of opportunity to introduce new capital market opportunities in the form factors of novel companies that we have kind of insight and exposure to to also kind of reward shareholders in innovative ways through these offerings. So to keep the the efficiency and dynamics of our profit engine, DeFi Technologies We are assessing the most efficient ways to essentially kind of spin off spin off these specific companies that will be financed in their underlying currencies.

So with Solify, large balance sheets, intended large balance sheets of Swana and with CorFi specifically large large amounts of core, We're obviously very bullish on both of these asset classes and this has been something that we've internally been working on this framework for a little over or a little under a year. A year now. I think just really reflecting on where we are in the digital asset space and what's moving, I would say, kind of on chain, there is a lack of innovation happening in the capital markets, you know, [indiscernible] since kind of I would say kind of my experience at least in the in the capital markets, launching Hive in 2017, We've seen a number of, you know, I'm not sure exactly what the number is, but 30, 50 potentially more publicly listed mining companies focusing on blockchain infrastructure, which has been great to see that CapEx intensive business receive institutional investors to, I think, secure what is now potentially 40% to 50% of all Bitcoin Hash Power globally. And now powering AI infrastructure, which is critically needed. But aside from that business segment, you have companies like DeFi, Galaxy, Coinbase, MicroStrategy, and and that's basically it.

In terms of publicly listed companies. So with with DeFi Technologies, we essentially want to you know, look at compelling new use cases technologies and ecosystems that we're close to And and use kind of the the capital markets for what they're good for, cap capital efficient formation, and the ability to uniquely create a creative new company's that will benefit our shareholders and we will definitely be as we go within the finalization of regulatory frameworks that conducive to these new companies, be be sharing more information on the specific structures and path forwards for these 2 unique companies that we're very excited about. Is that the last slide, Chris? There we go.

I think we can maybe open it up for questions now.

I'll just pick from the q and a.

Let's see.

First question from Mark, where is the USD14 million in Alpha Trading profits in the income statement? I think that's a question for Ryan.

So that shows up in the digital assets or I think the line item is called realized gains or losses digital assets. So it's embedded in that $51,000,000 for the quarter Sorry, I don't have the just going to pull up the income statement. $51,000,000 in the quarter. I guess total is 2.82 in the 9 month period.

And then I think [indiscernible] I was just going to say, hey, Ryan, maybe just quickly while you were talking about that, you and I were texting a bit. Everyone needs to also understand that we have an extremely robust book value with Aminabank carried at at cost despite the fact that Bitcoin prices have erupted and obviously, I mean, a bank is worth substantially more than what we paid the cost. Where do you think our book value sits at, Ryan?

Well, book value at the end of the quarter was 1.39. Like you like you mentioned, Amina is valued at up by market base at this point. Using a lot of primarily older data. Again, just the lack of information out there is being a mean of being private and not many comparatives. So if it was valued at say $100,000,000 or $90,000,000 you could easily just take the 40, subtract the 90, and add that to our book value. So make it So it'd be closer to 200? Closer to 200. Okay. Thank you very much.

Another question for Ryan. This quarter had $22,000,000 in exchange gains, What's the source and nature of the occurrence? How repeatable is this [indiscernible] backed it backed out this, you would appear we made no money. Can you explain how this works in the business.

Yes. So we do deal with a lot of foreign currency particularly at Valor. Most of the majority of the ETPs are based in sec. There are that currency is it fluctuates against our U. S. Reporting currency at Valor. We do also maintain a large SEC balance to facilitate activity on you know, buys and sells and redemptions of of ETP certificates daily. So depending on where the currency moves and it did substantially increase against the U. S. Dollar this quarter, it was a positive event for the company in terms of the appreciation of that against either transactional values of prior periods as well as the carrying the actual amount of currency we carried at the end of the period.

But to be clear, these are mark to market, right? Ryan? These aren't these are just due to regulatory requirements, and these are actually not Losses in revenue or losses in profit. These are marked market adjustments associated with currency fluctuations.

Well, there are revaluations of of the currency. Yes, if we were to monetize that into U. S. Dollars that would realize it.

But again, we do need a certain amount of sec on our balance sheet to facilitate trading.

Next question. Has DeFi made inroads with institutional investors in the last 6 months? Can you cite general examples? Think this one's more for Russell.

Yes, I can answer that. We absolutely have been And Unfortunately, being on the Canadian market, as many people are aware, shorting and predatory algorithms are allowed and the regulators despite the fact that we have ample proof of it occurring, and will be taking it forward. The regulators do not [indiscernible] But yes, when you have 3 or 4 institutional research analysts covering you, you always end up with a few entities buying and I wouldn't be surprised if there's a few buying today. I'm at the Cantor conference had several very, very good meetings with some very, very large funds, the other day. [indiscernible] it's It's unfortunate to see your stock down after an incredible quarter, especially when you're talking about book values and the $130,000,000 to $200,000,000 level with EBITDA at $100,000,000 and you look across the ecosystem where miners are losing money, negative earnings per share and trading up substantially. And, our hope is that with an uplist, which again, it's a forward looking statement you can never be 100% certain. But without Gensler, interfering and having having a much more pro crypto, SEC I would surmise that Anupolist is an a when, not an if.

And depending on the timing that Gensler and the SEC changed their stance on crypto. You know, we could we could be uplisting this month next month or sometime in Q1. And again, the irony is Galaxy trades up 50% on the news that crypto is likely going to be accepted in the U. S. And for whatever reason, we don't see that same benefit. But, the reality is that this company is making money hand over fist. Ollie and Johan are creating incredible products We're about to expand into jurisdictions where there's absolutely no competition. Our AUM stands to grow not just in small increments, but in double and triple and quadruple increments and this share price is not reflecting any of that currently. And so we will continue to attend all these conferences There are more analysts that are looking at launching coverage on us. And like I said, AUS. NASDAQ uplist And I can tell you this just categorically from a fund meeting I had yesterday. [indiscernible] they were like, we're gonna be buying now, because we wanna be long ahead of the catalyst of of the uplist. So big and bright future for this company as soon as we uplist.

That's for sure. Along with institutional buying.

Next question from Troy. Will future acquisitions be paid with share dilution? Also with the pace of share payments, will the company's diluted shares I can answer that quickly. We will never use shares to make acquisitions when our valuation is trading [indiscernible] is if we can actually make that acquisition at a lower multiple than our shares are trading at, so that from a cost of capital, it's always accretive. So really truly, it depends on what the acquisition is, what the relative valuation is for the acquisition, and where we're trading at, which is obviously an extremely low multiple. So those acquisitions, if paid paid for by shares like Stillman have to be have to be trading at an even lower multiple than we are.

I mean, to touch on that, all of our share based acquisitions have been I'd say, discounted price to net profit of the the acquiree. Basically, just implicitly on the fact that we're so undervalued, they get to bootstrap themselves onto our our cash engine. And And we will continue to evaluate acquisitions and cash and or shares at a discounted multiple to net profit.

Next question.

How can you guarantee will stay profitable as more players enter the game over time? Is there other avenues you see for robust Yeah.

Go for it. Okay.

I can answer that 1. So obviously, with DeFi Alpha, I would say that the it's also established in Q2, obviously, to to have a distinct focus on the opportunities that we see, not only in the growing market, but also within with the opportunities our balance sheet, growing balance sheet and liquidity answers. And A lot of the areas where we see both systematic earnings where we improve the monetization of the balance sheet On those areas, we have 0 competition. But also a lot of the opportunities we look at right now are also based on our relation to a lot of the projects where we have significant partnership with, where we have significant holdings. The back of the ETPs I would say a lot of the trades we do are not open for any firm to just jump in and then do prop trading. I've been doing, obviously, trading systematic and optimistic the last 10 years in crypto. And within these areas, nothing has much changed here. What has changed is our balance sheet, our flows, our liquidity and opportunity to to, to, efficiently go after opportunities. That's not where many competitors can actually even execute if they wanted to.

So I think we both on the systematic side and the opportunistic side, we see no change in this in the near future. But rather the growth of the ecosystem, the growth of mainstream by adaptation and so on just gives us more and more opportunities more than we actually have time more and more to look at spite of our growing bandwidth for and focus on this area. For near term future, we don't I don't see that change anytime soon. I thought in the 2015, 2016 actually that, the basis trade would go away after a few months, but it's still a healthy business even though it's a commoditized type of trade that most large trading firms engage in. So in other more Other fields where we don't see much competition, it will take even much longer than the [indiscernible] Sure. Thank you, Yoham.

I'm aggregating a few questions, into 1 more so reflecting on people's curiosity around our plans to move forward with professional capital management with ETFs in the US. When we'll be able to list on the NEROVIA exchange and the Middle East, Asia, etcetera. Holly, I think if you wanna take this 1 and clarify a little more. You're muted.

Quickly before all these steps in just so everyone knows Sorry, I muted myself there, but go ahead, Russ.

I was just going to say, Ollie just, Gensler is rumored to be resigning. He we we don't know for sure if he has. I just wanted to correct that just in case People were wondering So, yes, obviously, as Russ alluded to, fast fast paced changes happening in the U. S. Regulatory environments. So So we are constantly talking with U. S. Counsel about how to strategically and opportunistically approach That marketplace, again, for all shareholders and prospective shareholders, every time there's something material in terms of agreements, exchange partnerships, we press release them immediately. So we are actively working around the clock on Africa, Middle East, Asia, and other growth perspective in all of those marketplaces.

And then I think a lot more questions around the mechanics of sulfide and core strategy. Just Oli, if you could clarify how that specifically relates to DeFi [indiscernible] Yes. So the idea between you know, around these kind of companies is so, in a nutshell, we have developed proprietary systematic technology for both Solana and Core that allows the maximization of yields and staking returns, across those specific asset classes. We're extremely bullish on Solana and Core. If you look at kind of our press releases, Salon is on an absolute tear in terms of every sort of metric across the board. As well as core in terms of I think recently kind of going over 80% of all hash power in the world attributed to their chain. Started the year off with 3,000,000 dollars in total value locked on the protocol. Think as of today, it's well over 800,000,000 or approaching 900,000,000 potentially even $1,000,000,000 So we're bullish on these. We've developed proprietary technologies. In house to maximize the potential of holding these and we are partnered with a lot of institutions and holders of both of these individual currencies that want to see potential arbitrage of maximal value of the underlying spot value of those digital assets as people have seen within MicroStrategy, there is anywhere from a 1.5 to 2.5 multiple on those underlying assets assets within a public company construct.

So our idea is to retain, a large amount of the shareholding of these [indiscernible] [indiscernible] [indiscernible] is to then repatriate that value to our shareholders to in crypto, they have a term, if you hold a if you hold a crypto coin and you receive kind of remunerations in the airdrop. Could be kind of looked at as a regulated share dividend or airdrop to our DeFi shareholders Again, we are working with regulators and exchanges to clarify succinctly the best course of action forward and if efficient structures forward to be able to enable this. And also kind of bringing in and integrating [indiscernible] on how to best approach the formation of these entities for them to see, expedited day of light in the U. S. Markets. Which I think is all culminating in in a great time for us with, you know, the shift towards a crypto White House and and us formulating these these new entities and having kind of a new regime change for us to kind of essentially structure these entities remunerate our shareholders in the form of new opportunities as they arise.

And and ultimately continue to innovate and potentially assess further opportunities of unique digital asset classes that deserve their own capital market platform.

Okay.

Thank you, Ali. A question from Alan Klee, 1 of the analyst that covers us. And this is probably best for Yohan to answer. Guidance implies Canadian 46 $200,000 in revenue for Q4 2024. Over double 3Q24 results. Can you rank the factors pointing to higher revenue in the 4th quarter?

A big variety of factors. Obviously, part of this is we were quite conservative for the full year guidance earlier. And obviously, we have much higher market levels. We have [indiscernible] AUM right now. We have a much better product mix right now, which drives our monetization rates much higher. I think we were at 8.2% or something that of the AUM in Q3. We see that doing higher in Q4 along with the AUM, along with the new products we we have launching and also along with the the DeFi Alpha strategies that we are now scaling up as well. It's obviously hard to to guide on any opportunistic trades, 1 off trades. So we haven't included those in these numbers. We are looking very closely at a few opportunities we hope to conclude before the year end. But this is mainly driven by the growth of AUM. We see the the growth in [indiscernible] activities within the Alpha and the usually improved product mix within our AAM portfolio Also, but there's a few opportunities is we we are we will enable with the launch of these 23 new products within 2 3 weeks that will have to drive the revenues in Q4.

And then Yohan, if you could give us much clarity on, I guess, revenue generation for DeFi Alpha moving forward or You know, how how many opportunities we might, but it might expect to come of that Okay. Within the DPI Alpha, it's not just this opportunistic deals we're looking at, which are it's very hard to say how many per quarter there will be. We will we see a few opportunities that that we actually will be able to go after once we have more assets on those in the balance sheets, which we think we will have when we launch a new product. That's 1 part of it that we'll we'll see more of that in the next year. But obviously, we have also the systematic trading and the rationale for forming the FI Alpha was do much more make the monetization of the balance sheet in total both Fiat and crypto assets much more efficient and drive the monetization rates to within that context, obviously, without taking any markets exposure we see a lot of more opportunities now in Q4 in terms of arbitrages and short term transactions that that actually doesn't affect our exposure. But we couldn't do earlier in that no turnover, lower AUM environment.

To bolster flow and increased AUMs and decreased number of assets are driving our opportunities we see and the opportunities we engage in in at the moment and going forward throughout to Q4. So it's not just going after 1 off trades, it's also about building the infrastructure that we've been focusing on a lot since Q2 We had increased the bandwidth quite a lot in the team in regards to both development of infrastructure agreements with counterparties, and the focus on the research into these [indiscernible] it's it's very hard to be very specific here, but this early on because obviously it's something that we grew is an immense growth in our ability to participate here during this this quarter and last quarter. And we a lot of the fruits of this work will probably we'll see more of next year. But it's, yes, in this market environment, it's It's since the bull market started here and Bitcoin brought up the new autumn highs as well, that has just been immense change for the just daily opportunities in the more commoditized type of of both model driven and pure arbitrage opportunities we see as well. Yet that also paired obviously with our stronger balance sheet.

But I'm not sure what more specifics I could say in this, but yes, But everyone needs to understand if if we get, Middle East and Africa launched let's just say within the next week or 2, and we generate an incremental $1,000,000,000 in AUM within the first quarter or 2 of next year in each of those jurisdictions. That's an extra 200,000,000 US in revenue. And no 1 no 1, no none of the analysts no 1 on this call no 1 who's trading this stock is factoring in that potential additional revenue source. And we've been very, very clear that these these efforts are happening near term, not long term. [indiscernible] it, while DeFi Alpha is incredible, you actually may see a world where next year, the AUM numbers far outpace the DeFi Alpha numbers And obviously, from an analyst perspective, analysts like to put put higher multiples on reoccurring revenue versus 1 offs, like [indiscernible] But ironically, in our share price currently, none of that is being reflected, neither DeFi Alpha successes nor international growth. Just wanted to throw that out there because obviously Africa and Middle East and quite frankly Asia and Latin America are mass opportunities for us with with basically 0 competition.

Yeah. Yeah. So to underline that, obviously, what we it's not just DeepAR Alpha. We're looking at at much higher revenue streams from our core business, 1 factor is obviously that our AUM has has increased, I don't know by how many percent, but I think the average AUM was around 500,000,000 [indiscernible] [indiscernible] We're far above that level right now, and we did trajectory and the improved monetization rates, we should see huge improvement in the pure cash flow from the that's a big part of this as well. Great.

Thanks, Yohan.

Let's make this our last question as we're running a bit over time. Oli, could you just touch on the JV with 0 Computing? What we're looking at in terms of integration and what the goals are that, we wanna accomplish along with 0 computing.

Yeah, for sure. We we should definitely have some some very exciting updates in in the coming few weeks. 0 computing very, very kind of cryptographic intense technology, but essentially for a lot and pertaining to kind of DeFi Alpha and some of our trading operations, we've been working in the last few weeks on a 0 knowledge powered dark to essentially make our trading technologies more efficient There's also this huge issue pertaining to NAV which stands for maximum extractable value. Essentially kind of inefficiencies associated with blockchain transactions. So we're 0 knowledge or 0 knowledge and 0 computing is at the forefront of all of these technologies. We're co developing products and initiatives that will make our our trading revenues more robust and allow for higher systemic cost cutting along with essentially a technology advantage as we approach trading in new marketplaces like on chain Solana transactions being able to build positions in various assets, with the power of Surologged knowledge, essentially enables privacy related [indiscernible] we'll be happy to share, some of those new product innovations. Also products we intend on opening up is consumer and institutional platforms as we proceed.

Cool.

So that's gonna wrap up our call.

Thank you all for your questions. Thank you all for your attendance, and of course, we also value you as shareholders. If you do have any follow-up questions, Please email ir@defi.tech, or you can directly email myself or Russell curtis@defi.tech, rstar@defi.tech. We're usually the ones answering them anyway. We try to be as transparent as we're allowed to be. And if you need any clarity at any time we always encourage you to just simply email us. We'll answer any and all questions We can't provide any clarity if you have any concerns or just are curious about progress in general about things. [indiscernible] And have a great weekend, everybody. Thanks everyone.

Thanks, everyone. Bye.