DeFi Technologies CEO Says Firm Is Better Positioned for This Bear Market

DeFi Technologies (OTC: DEFTF) is better placed to weather the current crypto downturn than the last one, CEO and Executive Chairman Johan Wattenström told shareholders in a letter Monday.

The stock has fallen about 23% over the past month. The slide follows the Swedish FSA's rejection of the company's UCITS structure for crypto-linked products, which Wattenström's letter confirmed. He blamed the selloff on three things: the weak crypto market, a sector rotation out of crypto equities, and one-off technical factors tied to the company's capital raise.

Wattenström said the company saw a similar decline during the 2022-2023 bear market. This time, he argued, the fundamentals are different.

"Today, the company is considerably better positioned in this crypto bear market than it was in the previous cycle," Wattenström wrote. He pointed to record revenue and net income in 2025, a balance sheet worth roughly $150 million at the end of Q1, profitability, effectively zero debt, and a more diversified platform across Valour and Stillman.