DeFi Technologies Stock Continues Free Fall Despite Strong Financials
DeFi Technologies is facing a disconnect between its strong financial performance and lagging stock price. Despite posting record revenue and profit, carrying $150 million in cash and digital assets, and being nearly debt-free, the company's stock has plummeted to within 0.59 percent of its 52-week low.
The shares closed at €0.3428 on Wednesday, down 11.19 percent from the previous day and a far cry from their 52-week high of €2.46.
Executive Chairman Johan Wattenström acknowledged the decline in an open letter to shareholders, attributing it to weak altcoin markets, a broad rotation away from crypto equities, and technical pressure from a recent capital increase.
The company is operationally stronger than ever before, with its Valour custody platform on track to spin out as a standalone business unit and its Stillman Digital institutional prime brokerage arm adding larger clients each quarter. However, the stock's chart shows negative momentum across all timeframes, with an RSI near 33 suggesting sellers may be exhausting themselves.