Hashdex Bitcoin Futures ETF Price & Performance (DEFI)

The statements are made as per date of per the date of the presentation as this earnings call and the company does not assume any obligation to review, update, confirm any forward looking statements contained herein except to the extent legally required. Great. Welcome, everyone. And first off, what a great 2024. Congratulations here to management and congratulations to our shareholders that have stuck with us for the past few years. And from here, I'm going to hand it off to our CEO, Olivia Roussy Newton, but first I'll also introduce the rest of the panel today. Of course, Ale, CEO Johan Wattenstraum, the Co Founder of both DeFi Technologies and Zalor our CFO, Paul Buzocchi and our Corporate Secretary, Kenny Choi Russell Starr should also be joining us here as well our Head of Capital Markets and Curtis Lofman, VP of Marketing and Communications. Ollie, take it over.

Thanks a lot, Curtis. I think we thanks to everyone for being here. I think it's been a transformative year for both DeFi Technologies, our subsidiaries and the overall, I would say regulatory framework for general assets globally. We've read through this, right, Curtis? Yes. Yes, sorry. So overview on DeFi Technologies. We're a publicly listed company traded on Cboe, OTC Markets and Frankfurt, and we're connecting traditional capital markets with a rapidly evolving high growth world of decentralized finance and Web3. Through our whole deal of subsidiaries, venture portfolio, trading desks, treasury strategy and industry partnerships, we enable traditional investors to seamlessly tap into the extensive $3,000,000,000,000 sector in a regulated manner. We have about a four year operating track record. Valeor was, I think conceived by myself and Johan in 2017 and took a few years to get regulatory approvals. Today, we have 60 plus listed exchange traded products for this 2024, dollars '2 hundred and '4 point '3 million in 2020 for adjusted net revenue. And yes, to close off the year, we just before kind of the end of the year finalized NeuroNomics, so five businesses in total. And yes, we're very much a founder led team.

As I mentioned, Valor was incubated by myself and Johan in 2017 and DeFi in 2020 and both of those amalgamated in 2021. We have diverse business lines in the form of ETPs, trading infrastructure, research and more. Our oversight revenue model provides broad exposure to the wave of blockchain based asset services and applications. And going forward, now that we've kind of dramatically increased the strength of our balance sheet, proven our business model in the form of the war, look to scale that across new geographies, We've also started to make strategic and accretive acquisitions that fuel the growth of our balance sheet and have all been extremely strategic. Here's a bit of an overview graphically speaking in terms of the different business segments within DeFi. So, I'll start from left to right. We have Reflexivity Research that we acquired at the start of last year. Reflexivity has really been kind of a bolt on value added service provider to our main and largest subsidiary, wholly owned subsidiary, Boar. So when we go out into the market with new exchange traded products, we have cutting edge research and it also allows us to see the emerging trends in the digital asset space and effectively kind of know what products to list next and where the interest lies.

Stillman has definitely been an extremely fast growing company, very sharp team of young entrepreneurs that have definitely carved out a niche market in a very competitive trading business segments under digital assets, but it definitely shined out. We've owned just under 6% of the MENA now since 2021 and that has been kind of growing in terms of AUM capacity globally and was the first cinema regulated bank in Switzerland, One of the first kind of crypto banks in the world. A fairly new business segment, which we'll touch on a bit later in more detail is DeFi Alpha. DeFi Alpha is still focused on identifying low risk arbitrage opportunities within the crypto ecosystem. This past year, we did $133,100,000 just under $100,000,000 USD in revenue. We have a somewhat substantial venture portfolio, just over $50,000,000 CAD, just under $40,000,000 and the idea and premise behind our venture portfolio similar to reflexivity is streamlining new ETPs, new products to kind of be invested in and bring to market first within our Velour business. One thing we're very excited about is our kind of majority acquisition of NeuroEnomics, a leading Swiss artificial intelligence and asset management firm. Through this 52.5% acquisition of the company, we've also received a FINMA license and we believe artificial intelligence will be ingrained systematically in all kind of facets of digital assets.

And we see kind of the highest profitability in terms of that business segment in asset management. And we have several joint ventures with a number of leading companies around the world. So this is kind of high level numerical facts on 2024, so adjusted book value of CAD192, adjusted 2024 net revenue $2.00 4,000,000, earnings per share $0.39 market capitalization of roughly $1,200,000,000 assets under management of just about a little over 1,000,000,000 adjusted EBITDA is CAD 116 CAD and cash in international asset treasury on balances 81,300,000.0 and 2024 return on equity based on adjusted income was 60%. So these are some of the financial highlights of Q4 twenty twenty four. We reported $22,400,000 in cash on hand, up from $6,800,000 dollars on 12/31/2023. As of 12/31/2024, the company's treasury holdings included $2.00 8 Bitcoin, 1 hundred and 20 1 ETH, bought at just under 600,000 ADA, which is Cardano, 1 hundred and 30 1 thousand DOT, which is Polkadot's blockchain, 14,000 SOL, 4 90 1 UNI, which is the DBSwap token, 433,000 AVAX, which is Avalanche ecosystem token and just under 2,000,000 core tokens, totaling just under C60 million dollars $58,900,000 The company's venture portfolio investments were valued at $53,700,000 as of 12/31/2024.

Total cash, treasury and venture portfolio stands at $135,000,000 As of our year end, total adjusted revenues were $42,600,000 for the three months ended December 31 and $204,300,000 for the twelve months ended December 31 as well. Adjusted net income was CAD 19,100,000.0 for the three months ending December 31 and CAD 115,000,000 for the twelve months ending December 31. Adjusted EBITDA was CAD20.8 million for the three months ended 12/31/2024 and 116,100,000.0 for the twelve months ended 12/31/2024. On to the lower, so lower generated staking lending income of CAD12.8 million and management fees of CAD2.9 million. AUM grew by 132% since December 2023 to approximately $1,180,000,000 as of December 31. Given by favorable market conditions, obviously kind of new crypto friendly administration in The United States and an aggressive strategic corporate action. Stillman, it's not been with us for a long time. We worked kind of diligently over several subsidiaries that have to be amalgamated regulatory licenses in the digital asset space are not always easy to kind of cross over into new entities. So we finalized that acquisition a few months ago. I think it was mid October and they generated just under $3,000,000 in revenue and are growing extremely fast.

So once we have a few more months of still on our balance sheet, we're very excited about the synergistic benefits of that business to Fluor, DeFi Alpha and other opportunities we're looking at. D5 Alpha, specialized arbitrage desk, as I said, we'll touch on that in a bit more detail, generated $132,100,000 We are very careful in terms of not exposing ourselves to losses in that business. Reflexivity, very complementary to the lore in the form of enhancing our product offerings in terms of discoverable and actionable research that people can review before selecting which exchange traded products they would like to purchase, had just under $1,000,000 in revenues for the three months ended December 31 and $2,000,000 for the twelve months ended 12/31/2024. Here is our kind of AUM in net sales in USD. As you can see, we've kind of had a very robust increase into 2024 as digital asset prices climbed. And, Johan, did you want to touch on any specific kind of data indicators pertaining to this slide?

I think the most important bit here is that we launched 20 new products in November. As you can see, a larger portion of the AUM has actually gone into 108 largest assets than the ones we had before. So I think it's around 20% now. It's in mostly these 20 new smaller points, which include our products mix quite a bit. We've seen healthy inflow across the last four months or last eight months and going on into the start of this year as well.

Yes. So I think to touch on that, as Johan mentioned, we've been bringing smaller, I would say smaller or newer coins to market that are definitely a lot popular, a lot more popular than say what people might refer to as the blue chip digital assets. People want exposure to volatility and growth and we will continue to provide the largest and most diverse range of exchange traded products to our clients across incoming geographies.

I think another point to add that's really important here is that we haven't had a net outflow month in probably a little over two years. And then in fact, last month in February when you had billions of dollars in outflows in all the ETFs globally, Valor still saw total inflows over $11,000,000 into our ETPs. So these products are very sticky. We continually see net inflows month over month and hope to see that trend continue?

Yes, definitely good point, Curtis. It's nice to have a demographic of clientele that are risk on. Yes. So, obviously, we're confined by some of the things that we can share, but this has been an ongoing process since 2021 with specifically the SEC. So just to recap things, mid September, company filed a 40 F registration statement with the United States Securities Commission in connection with its application to list its common shares on the NASDAQ stock market. On 01/17/2025, the company filed an amended 40 F registration statement with the SEC. The listing of the company's common shares on the NASDAQ remains subject to the approval of the NASDAQ and the satisfaction of all applicable listing and regulatory requirements, including Form 40 F being declared effective by the SEC. The NASDAQ continues to progress its its application to list its common shares on the NASDAQ. Obviously, there's lots of benefits to being listed on a major U. S. Exchange. Most people know visibility, access to institutional retail investors and help DeFi make a name for itself, which I think is still kind of largely unnoticed in terms of our profitability and uniqueness of our business model. And so, yes, and obviously, as we get material information, we're press releasing it right away in terms of this.

I think it was kind of a jump ball with the election going into the end of the year and once we had kind of a pro crypto presence, the game has definitely changed in terms of what we're seeing and the optimism across the border from Canada in terms of state side regulatory stuff. So I'm not sure if Paul, if you want to comment on anything or Russ?

Yes. I was just going to say one interesting anecdote for everyone is that not that we're Galaxy or I mean, I guess in a way we're similar to Galaxy in some aspects. But Mike Milvogratz was on, I believe it was CNBC saying that he believed that the SEC was just waiting for annuals to be filed once the annuals were filed And of course met whatever the new hurdles or restrictions were that the SEC is putting up, which are completely different today. I believe they're not considering any of these tokens as equities anymore. They would then see or the SEC would then see uplifts on a far more regular basis. So and that was over Galaxy, not out of us, but just gives you a little bit of context.

And then from my desk, we have a PCOB compliant auditor. We filed our annuals. So there's nothing holding us back from the financial and reporting point of view. We would be listed in The United States on NASDAQ as what's called a foreign private issuer. It's really just getting effective with the SEC, which management here hopes it's Q2 and hopefully sooner, earlier in Q2 than much later in Q2. So probably one of our biggest endeavors across the company has been our strategic and global expansion. So, we have 60 ETPs as of now targeting 100 plus by year end, which are some of which include leveraged and warrant products. We've been the first mover in a lot of these markets such as Africa, Asia, Middle East, which has its benefits, but also has a process to educate local regulators, exchanges, legal firms in terms of what digital asset offerings mean through a stock change and how to keep them secure. Some of our strategic partnerships that we've announced is our MoE with the Nairobi Stock Exchange to list our ETPs in Kenya and one in Singapore with a new exchange that's backed by SBI Holdings and SIX, which is the Swiss stock exchange called AsiaNEXT.

And we should be seeing they're moving at a very both moving at a very fast pace. And so, yes, we're using kind of some of these markets as a blueprint to then further aggressively expand Singapore into other Asian markets, Kenya into other African markets and we have put in place eligibility letters in The Middle East in both the DSM, the Dubai financial markets and with the Abu Dhabi stock exchange. So asset management outlook for 2025, I think we being in a highly volatile macro environment definitely tread on the side of optimistic, but also definitely want to be conservative as I think the world embraces kind of a new some I don't want to say kind of new world order, but a world order where assets and volatility kind of change and fluctuate on a daily basis that will take a little bit of time to kind of smooth things out. But just some quick kind of factoids and highlights. AUM growth is up 900% since market lows in 2022. We already covered kind of the some of these specific numbers growth driven by favorable market conditions, DBGP launches, but we will continue to do and we're always from a technical perspective working on increasing, optimizing, staking and lending fees, making and automating our trading desks to make those more cash flow generating, less human error.

And we gave conservative guidance of C227 million dollars USD159 million. And Johan, I'm not sure if you wanted to kind of touch on kind of how we systematically came up with these numbers at all.

I think they're mainly derived from also the momentum and the trends we see right now, but also obviously we have been, as you said, quite conservative in our assumptions. I think we are quite optimistic about the markets for the full year, but in these assumptions, we cannot assume the same levels of the market as we see right now, where the core business driven by the ARAM monetization will be at that much higher level than last year. We have chosen to be quite conservative on the DeFi Alpha side. We have quite an aggressive growth of our pipeline of deals, but it's very hard to pin down exactly when they go through. But we anticipate a strong next quarter within that business, and then it's harder to know exactly how many deals we'll do at what month, but these are different trends we've been taking into this. But we're trying to be quite conservative with the market. At the moment, we don't want to make any optimistic assumptions about the market for the full year even though we are very bullish on the crude market as such ahead of the next few quarters, but we haven't actually baked those into those assumptions and projections for the year.

So just to visually kind of put in place the geographic expansion, we started new products as United Kingdom's FCA Regulators opened up some products specifically just for Bitcoin and Ethereum. We're still working with regulators on innovative Bitcoin products and going back and forth. Again, these lot of regulatory education required, but I think once we can get some of these landmark innovative projects, it's fairly quick to mirror them into new markets. We've announced a joint venture in The U. S. With Anthony Pompano's PCM. Canada, where we are still assessing the right joint venture partners. Africa, we've signed an MOU with the Nairobi Stock Exchange in Kenya. Africa, I think, is a very interesting market. And also with treasury related introductions and basically kind of starting with United States stockpiling cryptocurrencies for their kind of governments and or sovereign wealth funds. African nations and others around the world will be quick to do so and would feel definitely more secure doing so through regulated stock exchanges that their countries control. UAE, as I mentioned, two eligibility letters have been submitted in Dubai and in Delhi. So we're progressing quickly there. We're also exploring four or five other Middle Eastern countries that are definitely progressive and opening up to digital assets.

Again, I think similar to Africa and UAE and Singapore for that instance, once you're able to kind of list and provide a benchmark for products working logistically in a compliant manner, then it's kind of a domino effect within those regions. So this is kind of a slide that just kind of goes over the type of digital assets that we're thinking of. And obviously, the world is changing very rapidly. We've developed a very large clientele of people who definitely want exposure to new innovative asset classes. So we have a whole range of topics that will convert into productization for our end users. And obviously digital assets is very interesting, but digital assets can also be mixed with various other commodities. We will see a lot of innovation happening with our recent acquisition of Neuroonomics applying AI, not just to digital assets, but also equities. And Johan, I'm not sure if I missed anything here. You wanted to touch on anything in more detail? Yes. I think the main point here is that obviously we after the success we had with the new assets listed in end of Q4, digital assets, we continue to roll out a lot of new ETPs on the digital asset side, for sure, to build on that success and that momentum.

What we're going to add to that now, hopefully, first half year here is the active strategies, active demand certificates as well on more different types of strategies, alpha type strategies, including aeronomics strategies in this realm and not only have the passive type of ETPs. And we also besides working to expanding the underlying assets unit works, we also work pushing quite hard on broadening the scope of investment vehicles for this purpose. So right now, it's not only ETP, CTN, but also warrants, as mentioned, funds as a back tokens all in the works. But yes, we're building on the infrastructure for those vehicles to reach a broader audience for a broader audience of investors. And as we also mentioned here, besides the one on one trackers, we see a lot of also structured products and other types of businesses on these ETPs, ETNs that we see a big demand for, which we hope to roll out now in Q2, Q3 hopefully, very soon.

So here's our assets outlook or digital outlook, corporate outlook for Stillman in 2025. As I mentioned prior in the call, it took several months to get the regulatory licenses over from their various subsidiaries into an amalgamated structure. We're forecasting $12,000,000 to $16,000,000 for 2025 again always trending on the conservative side driven by trade volume growth and new business initiatives. Q1 twenty twenty five forecast $2,800,000 to $3,000,000 in revenue with significant growth potentials as synergies with DeFi Technologies and WAR materialize. Focus in 2025 will be business development, expanding the team to accelerate institutional client acquisition focusing on Latin America and Europe, product and market expansion, enhancing FX and Stablecoin services to diversify revenue and hedge against altcoin volatility. Again, this Stablecoin real world asset market segment is booming and we definitely have some inroads to have a seat at the table with Stillman's potentially new product offerings in that regard. Strategic partnerships, expanding global banking relationships, We announced kind of partnering with one of the largest banks in Liechtenstein and Pankfrick some months ago and Fireblocks to broaden client access and streamlined via the FIA transaction and team growth, brand evolution, post acquisition integration. We're still working on fine tuning technology and trading technology across all of our subsidiaries.

So we're very excited about the potential growth of Stillman. It runs like us, very lean and mean. And I think you'll see kind of more and more new products being launched and just general growth in terms of being a great business amidst market volatility? Johan, do you want to take this one?

Yes, for sure. So in general, for the Delphi alpha DeFi alpha, sorry, the main points here, I would say, is we have two parts of it. One is the larger deals where we built a significant pipeline with deals that we are at high conviction that will happen within Q2, Q3, especially two larger deals in Q2 that we have more or less time. But those, as I say, it's a good quarter out in the time line here, which is hard to pin down exactly what month they will occur in. We project that this will still be a huge part of the revenue for the year. The other part here, which is more consistent on a day basis is the more model driven type of arbitrage strategies, which are kind of integrated with our daily flow management and also the management of our balance sheet in terms of monetization of our full balance sheet, including liquidity, digital assets and so forth, which gives us quite a unique position to take advantage of a lot of both arbitrage and other type of model driven strategies. We built out and continue to build out the infrastructure and models quite a lot in this area.

So that's one part of it that we see strong growth in. And the other part is obviously that we're focusing a lot on growing the exposure to and the pipeline of deals similar to what we were able to do last year. And we are really optimistic about the full year and also next quarter in these terms. So yes, we believe this will still be probably half of the revenues going forward for the next year, I think, and can grow into long term. And also that this is, I would say, these type of trades are more uncorrelated to the core business cash flow we see from the optimization of the monetization of our AUM and the rest of our assets on the balance sheet. Those are easier to project, but we see that both parts will have a huge impact here continuously during the year. And we have been quite conservative in our estimates for the full year here as there might be some volatility in part of this in terms of deal flow. But yes, we are super optimistic on this part for sure.

And just want to emphasize there are two parts to DeFi Alpha. It's the larger trades that we've seen, but also we have the daily systematic arbitrage through our daily flows that we see through our products?

Yes, for sure. Both for the daily flow and also for the monetization of our liquidity and the balance sheet. So that's one silo here and the other silo is the kind of series of one off deals that we see continuously while we're building our relationships with our counterparts and so forth, yes, which we started last year. And we see a lot of super interesting large deals coming through this year as well. And some of them have taken more time on the call. We actually thought we would finalize one or two of these in Q4 last year, but they are those took a few more months. I think some of the counterparts waited a little bit because of the dip in the market we saw. But, yes, those are we have a high commission that those will happen now in the near future.

Yes, I think we and just to touch again on D5L5, I think it definitely took a good two point five years for us to be able to accurately forecast with data endpoints, Alor's revenue in conjunction with the ratio to AUM. So I know everyone is very eager to see specific breakdowns of DeFi Alpha's outlook and projections. But as the market kind of changes, which is what Johan alluded to, we're going through kind of new cyclical trends in volatility and with that comes trading opportunities, but also risk off opportunities which kind of delays some of our core strategies. So hopefully, we're not even a year into having operated DeFi Alpha. So I think give us a few more quarters and then we'll be able to specifically really have those specific breakdowns. But I think given kind of global uncertainty, we'll always tread with caution and provide conservative outlooks on all these matters. So to touch on neuroanomics, really kind of rocket science PhD team that's been working in artificial intelligence for better part of the decade, if not longer. We acquired just over 50% on 03/07/2025. Our strategic growth initiatives expanded model driven AMC program, so we're partnering with Ward to broaden an actively managed certificate suite, leveraging proprietary AI for strategy development proven through their AI platform Neurofin, market diversification, extending expertise into new asset classes, Q3 twenty twenty five launch AI powered rebalancing strategy for the tech sector.

So there is a large pipeline in place, smart crypto AI, Q3 twenty twenty five, so high portfolio product that gives you high risk adjusted returns across cryptocurrencies, crypto alpha AI and captures alpha in the digital asset space. And then we'll be rolling out an equity solution, which we're very bullish on targeting inefficiencies in the technology stocks. And with this, there's so many new fund managers and institutional capital entering the space. I just think that every institutional and or fund managers is going to have to have a breakdown of their portfolio in digital assets managed by artificial intelligence as we see enormous leaps and bounds every day essentially towards AGI. So in the kind of majority acquisition of Neuroonomics gives us compliance and TechEdge. We get a FINMA license, which allows us to distribute products in Switzerland, where there's a huge number of family offices, institutional capital, large banks looking for products of this nature and we have scalable infrastructure to go along with that. So we're very excited about being able to launch AI infused digital asset projects and then also get into equity products. And Johan, I'm not sure if I missed anything on this.

No, I think that that captures some interesting points here. And I think as you said, they have a very long track record of research and have been running actual strategies in the crypto market driven by different forms of AI and we're also looking forward to apply those this technology across some other partially of the group as well.

Yes. And here is just a bit more of visuals on just their AI strategies that are performing general crypto indexes. I think all of this is available on our website as well. So two, pure play exposures to Solana and Bitcoin finance. So we've been pushing forward on and obviously partners with the team at Core. Really love what they're doing in terms of inventing noncustodial staking and dual staking for Bitcoin. They definitely have the highest committed amount of Bitcoin to any kind of chain of this nature. And we'll be pushing forward aggressively With kind of all of the changes in The U. S. Administration, we're definitely working with legal counsel to figure out and facilitate the most and quickest streamlined approaches to market for both of these companies, which as we announced will be distributed to DeFi shareholders. So very excited about this and we've obviously on the Solpi side, we have one of the largest Solana funds globally, in house Solana team, we acquired Solana technology proprietary algorithms that maximize the yield when it comes to this. So we'll definitely be as things become material press releasing them. And I think just in light of the new administration changes with the SEC, we've definitely been figuring out and optimizing trajectory for the capital markets for both of these initiatives going forward.

Great. So now we can move to questions for the last half of the call. You can type your questions into the chat if they already haven't been answered and I'll just cycle through them. Let me pull up the Q and A. We'll start with Michael Kurnos. I've answered a bunch of them just while we've been on the call just to make sure we could get through them.

Awesome. Thanks, Russ. We'll start with Michael Kim, an analyst from Zacks. In terms of the annualized revenue projection of CAD $227,000,000 for 2025, is that based on AUM as of 12/31/2024?

And Johan, yes, go ahead.

Yes, I think a breakdown there's a few inputs in that where we derive that from, but we have actually assumed the same levels of the crypto market as we have right now. But we have built in a trajectory for the AUM we think we'll get from our new launches in terms of products, which is based on the kind of inflow we've seen in prior launches, both now in Q4 last year, but also prior to that, and the new geographies that we will get to in the year. So mainly, the main force there is the growth in our Algo strategies, the new product launches, new yoga fees in terms of the AUM growth. The AUM growth that we have kind of based the monetization numbers on do not assume a higher market. So but it's based on the launches and the development of the business in terms of new products and so forth. Great. Thanks, Sehun. A question from Hal from analyst of B. Riley. What is the best estimate for launches of ETPs in Asia, Middle East and Africa given the regulatory commentary in the call today?

Yes, I can take this. We are definitely I think in the final strides with the Singaporean exchange Asia next. And I think we'll be coming to market with very innovative first of its kind product offerings, specifically and primarily to target the money market funds that trade in Singapore. So I would be comfortable with kind of a thirty day time horizon in terms of Singapore. We are really in kind of like final steps with both Middle East and Africa. And it's really up to the regulators similar with the SEC to give you the green light. I think we have some people who drive a lot of influence in these markets. So we're pushing as far as we can on a daily basis in regards to that.

Another question. Can you speak to the custody risk of the assets tokens, cybersecurity issues, how you custody? And is that risk borne by the unitholders as well?

Yes, I can comment on that. So obviously we have a short list of custodians we use and including copper, including Anchorage Bank, including VITCO and a few of these most known names. I would say we have a really low risk in this regard. We have been custodying cryptos for ten plus years of this size and we have a really our process has developed this ten years. So it takes a long time for us to actually onboard or allow a new custody solution into what we do. And I would say we feel super comfortable with our process for onboarding new custody solutions. We don't do that often, but we have a very short list of custody counterparties we work third party counterparties we work with. I don't know if someone else wants to chime in there.

Johann, maybe comment about the fact that we also have several validators of our own, which as a result with those like with our Solana validator, with our core validator, we actually aren't lending out basically any of those products because they actually sit there and validate.

Yes, yes, yes, yes, yes, obviously the one part of this could be counterparty risk. We basically do not lend tokens at the moment. So we keep the coins with our custodians and we do staking from those custody accounts and that's with our own validators, I would say almost with all the underlying. So we have a tech team on board that has been both developing custody solutions for a very long time in this space and also are part of the process for allowing new custody solutions, third party counterparties to come on. And we run the validators on support and within our state technology team. So we have that in house, which also have obviously improved quite drastically our monetization rate during last year. As we prior to that, we're using also third party validators. So custody remains super conservative, but we have from the delegated our own validators now.

Then I've invited analysts at Northland Capital, Mike Rondold, to ask a few questions. Mike, go ahead. Hey, guys.

Thanks a lot. Can you hear me?

Yes. Yes.

We hear you. Thanks.

Hey, so I think you covered the three new geographies pretty well in the Q and A section. But are there any new ETFs or ETPs planned for Europe and The UK in 2025?

Yes, for sure. As we said, we are aiming for we are at sixty, sixty five, I think, products right now. We're aiming for 100 for the year. So within the next few weeks, we will launch another batch of products in Europe. And also in terms of London Stock Exchange, it's up to the regulator. I believe that only Bitcoin and Ethereum are actually allowed in The UK as of now. But for the rest of Europe, for sure, we're going to aggressively go out with a lot more underlying products and more versions of those and types of vehicles as well. So you will see more larger batches of new products coming out during Q2 and Q3.

Okay. So we should understand the 100 ETPs, that's a goal for Europe and The UK. That's what that relates to.

Yes. Yes. Yes. Got it.

The UK only allows for Bitcoin and Ethereum ETPs right now. That's it. Okay. And I think there was a question that potentially touches on this, which is why we kind of work with smaller exchanges, for instance, Spotlights in Sweden is because they're more in tune with additional assets where things are going and allows us flexibility to list new products. So we can't list more than two products in The UK as of now. We're working on something innovative that I can't really talk about, But we're trying to push the boundaries everywhere and anywhere, right? But with more, there's definitely like The Middle East, Asia, they're embracing crypto. And once they see all of these 100 plus products on a recognized Euroclear regulated stock exchange, our goal is then to passport all of them subsequently into these new jurisdictions.

Got it. And then embedded in your C227 million dollars revenue guidance, DeFi Alpha, it sounded like from Johan's comment that could be roughly half of revenue in 2025. Did I hear that right? I'm trying to understand what's embedded in the 2.27% for DeFi Alpha.

Alpha? In total for the company, I think we have the AUM, the monetization rate from the AUM at present levels is around $90,000,000 to $100,000,000 I believe for the year projected and that's the monetization of our AUM based on the trajectory we have a hard conviction in for rolling out these products and there's no kind of nothing stopping us with the exchanges we worked on to actually do this. So, yes, it's both and I think part of this will be from new products. Some of these products will be smaller market cap digital assets for sure, but also it will improve our product mix. So we have a higher monetization rate in terms of lending, staking and flow revenue from the smaller assets. So it's both come from new assets we put out there, the continued growth as a percentage of the total of the smaller high yield products. So, yes, so that's basically it.

Got it. And then just two quick questions. We're sitting here at March 31. Can you comment on the March? Is it appropriate to take, I don't know, a fourth of the $227,000,000 and say the March is at least a fourth of that or close to a fourth of that? And then secondly, so far year to date, was there any large DeFi alpha trades?

What we can say here is that we have had a very strong Q1 here from our core business for sure. I think it's actually going to be better than Q4 because of the average asset under management, the higher monetization rates and so forth that we will have. On the one off deals, we have a few that we believe will come through next three weeks. We thought they would be in Q1. I don't think you will see those in Q1, but you will see a bigger chunk of that in Q2. So there will be less revenue derived from these, but I think we can probably go out like we did last year and communicate that when these larger significant deals go through. But Q1 is definitely strong from the whole core business, the arbitrage strategies and so forth. So we have seen a good quarter so far. But in terms of the one off big deals, you will see more of those in Q2 and going forward. But we have more obviously know much more about Q2 than Q3. So for sure Q2 will be a good quarter on that side.

Paul, so Mike, one thing to add to that and everyone here on the team will agree. The deal on which really is just a mark to market pain in our unit, as those dates occur where portions of those investments fall off and there was a very big waterfall event on March 31, not only does the DELAM percentage go down as time goes on, but also a lot of those long positions which are being arbitrarily marked down by the auditor, despite the fact we're fully hedged, those will come off. And so March will also see because, Paul, correct me, I think it happened on March 31, so it will be part of Q1.

Is that correct? Yes. Well, just for everybody else, we do have RIN2 funds. One of the funds gives us back 25% of our capital effective March 31. We won't get the money until June, but it's a distribution. The slightly on to what Russ said for everybody is the DELAM is linked to the timing of the coin. So coins out in 2028 have a DELAM as high as 42%. The 25% I had at the December is on the basket of the entire portfolio. So the coins in March don't have that much of a DELAM on it. So we won't see a big gain pickup particularly linked to that, but we are commercially getting our capital back. If everybody can follow that, it's time value of money. So coins several years out have a bigger DELAM On a portfolio basis, we're at 25 at December and it will come down. But unfortunately, the March 31 trigger of one of the funds distributing back 25% won't give us a big DELAM gain because those coins didn't have a big DELAM on them just for everybody. I know it's confusing, but the takeaway is it's non cash. It's mark to market.

Yes, it's mark to market. Mark to market and it turns around and it will reverse to zero by 2028 and grind steadily down.

Got it. Well guys, best of luck in 'twenty five. Thank you.

Thanks, Mike. Thanks, Mike. And then a question from Alan Klee. I think this will be the last one we've run a little bit over. What are the factors behind the higher monetization for Valor? So I think, Johan, if you could explain just how the business model for Valor works in a little more detail?

Yes, for sure. So there's several factors here. If you compare it to last year, obviously, last year we paid off all the debts. The debt was held a lot of collateral. That collateral is free and can be monetized now. That's one part of it, which we already touched upon before. Another part is that we actually now run a much higher percentage of our assets under our own validators, also with Mavicode and so on on it, so we can monetize it to a much higher degree than prior when we actually outsource a lot of the staking. That's one part of it. The other part is obviously the work we've done with monetization of the flow and the arbitrage of our liquidity, that's something also that's maybe a little bit outside of this, but that's somewhere we have become much more efficient and more intelligent algos for that purpose. But so it's basically just a few factors. We have a much we can lend much to much higher rates because of our network nowadays and only do that opportunistically when we see really, really good deals. We're on the staking side, we run our proprietary technology right now, which had in some cases actually doubled our monetization rate.

Another factor is that we have signed more and more do sign seed agreements with lock ins with some of the small coins with a quite high staking reward that was not part of the product mix earlier. And then also obviously the higher part of the AUM that there are the smaller high yielding coins that's also driving monetization rates.

Great. Thanks, Yohan. So we're going to wrap it up here. I think high level, obviously, very spectacular 2024. If we were going into 2024, I doubt the market figured that we would produce these results that we have today. So we kind of took the street by surprise. I think we have some surprises up our sleeve as we've alluded to for 2025 as well. But thank you to all of you who have joined the call. Thank you for all the questions. If we weren't able to answer your call or answer your question during this call, please do reach out to irdefi. Tech, curtisdefi. Tech or rstardefi. Tech and we'll be happy to answer via email or even take your call. This recording will be made available as soon as I get it up on Twitter. You can view the presentation that we had today via the link on the press release that we put out this morning. And with that, enjoy the rest of your Monday and have a great week. Thanks everyone. Thanks everyone.

Thanks everyone. Bye.