DeFi Technologies Posts $22.3M Q3 Profit as Valour AUM Rises 62% - CoinMarketCap
DeFi Technologies posted third-quarter net income of $22.3 million as its exchange-traded product unit Valour saw assets under management rise 62% to $643.7 million.
DeFi Technologies, the parent company of exchange-traded product issuer Valour, reported third-quarter net income of $22.3 million on $18.3 million in revenue. The figures reflect trading gains and investment revaluations that contributed materially to the quarter's results, according to CEO Johan Wattenström.
Revenue was down from $22.3 million a year earlier, while operating income decreased to $7.0 million from $9.0 million. Core operating revenue, which excludes realized and unrealized gains and losses, fell to $6.1 million from $10.3 million.
Valour's Growth
Valour's assets under management rose about 62% during the quarter to $643.7 million at September 30, from $397.2 million at the end of June. The unit attracted $26.1 million of net inflows during the period, though its average AUM of $492.8 million remained down from $950.7 million a year earlier.
Looking ahead, we are optimistic that the lows of this bear market may now be behind us.
Financial Position
The company held about $159 million in cash, digital assets and investments at quarter-end, including $53.4 million in cash and stablecoins, $48.2 million in treasury digital assets, and $25.5 million in venture investments. Holdings also included $20 million of Strategy's STRC preferred shares.
Management fees fell to $1.2 million from $2.9 million, and staking and lending income decreased to $2.6 million from $4.9 million. Since the quarter ended, Valour has launched eight more products, each with a 1.9% management fee. The company's trading unit Stillman Digital generated $7.6 million in commissions over the first nine months, up about 22% from a year earlier.
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