Diamond Equity Research, a leading equity research firm with a focus on small capitalization public companies has initiated coverage of Defi Technologies Inc. (NEO: DEFI.NE) (OTCMKTS: DEFTF) (FRA: RMJ). The in-depth 18-page initiation report includes detailed information on the Defi Technologies’ business model, services, industry, valuation, management, and risks.

The full research report is available here. Highlights from the report include:

Large Market Opportunity

• Bridging the gap between decentralized finance and traditional finance - DeFi Technologies is the only publicly traded company built to give investors direct exposure to the expanding Decentralized Finance market. Solutions provided by DeFi Technologies allow investors to gain exposure to select emerging DeFi protocols without the burden of opening and managing a crypto account. The company is a direct beneficiary of the growing digital asset market, which requires increased independent governance and infrastructure.
• Targeting considerable AUM expansion - DeFi Technologies is targeting AUM (Assets Under Management) to grow on the back of the continued and growing adoption of digital assets and increased market share of systematic vehicles like ETPs and ETNs. We model DeFi to expand its AUM to $1.1 billion by FY2025 and $4.9 billion by FY2030. Given its growth trajectory and management's guidance, DeFi is likely to launch many emerging protocols. The company's announcement of its entry into metaverse ETP products confirms its vision of being a leading player in Web 3.0 and the decentralized finance economy.
• Digital assets are a growing industry - Adoption and growth of digital assets is bringing a huge shift in the financial services industry. Being a distinct asset class, digital assets have gained acceptance not only among institutional and HNW clients but also among retail investors. With increased regulatory clarity and the development of more sophisticated products, mainstream adoption of digital assets is increasing. Traditional and well-established investment firms like Fidelity Investments and BlackRock have also launched digital asset offerings, demonstrating the expanding relevance of digital assets for investors.
• Experienced Management Team - The company is led by experienced professionals with expertise in the domains of financial technology, asset management, and the digital asset space. Russell Starr, Executive Chairman, and CEO brings deep capital markets and financial industry expertise. He is the co-founder and part-owner of Echelon Wealth Partners, a large Canadian investment dealer. While the COO of the company, Johan Wattenstrom is also the founder of XBT, now known as CoinShares, a pioneer in digital asset investing.

Valuation

• Unassuming Valuation Relative to Peers - We have valued DeFi Technologies using DCF as our preferred methodology. We believe industry tailwinds are likely to bolster the company’s growth going forward. Based on our assumptions, we have valued DeFi Technologies Inc. at C$3.33 per share, assuming successful execution by the company.

About Defi Technologies Inc.

DeFi Technologies Inc. is a technology company bridging the gap between traditional capital markets and decentralized finance. The company generates revenue through three core pillars by catering to individuals, institutions, and running DeFi protocols.

For more information, visit https://defi.tech

About Diamond Equity Research

Diamond Equity Research is a leading equity research and corporate access firm focused on small capitalization companies. Diamond Equity Research is an approved sell-side provider on major institutional investor platforms including Factset, Morningstar, and Thomson One.

For more information, visit https://www.diamondequityresearch.com.

Disclosures

Diamond Equity Research LLC is being compensated by DeFi Technologies Inc. for producing research materials regarding DeFi Technologies Inc., and its securities, which is meant to subsidize the high cost of creating the report and monitoring the security, however, the views in the report reflect that of Diamond Equity Research. All payments are received upfront and are billed for an annual or semi-annual research engagement. As of 03/15/2022, the issuer had paid us $35,000 for our services, which commenced 02/17/22 and is billed annually. Diamond Equity Research LLC may be compensated for non-research related services, including presenting at Diamond Equity Research investment conferences, press releases and other additional services. The non-research related service cost is dependent on the company, but usually do not exceed $5,000. The issuer has not paid us for non-research related services as of 03/15/2022. Issuers are not required to engage us for these additional services. Additional fees may have accrued since then. Although Diamond Equity Research company sponsored reports are based on publicly available information and although no investment recommendations are made within our company sponsored research reports, given the small capitalization nature of the companies we cover we have adopted an internal trading procedure around the public companies by whom we are engaged, with investors able to find such policy on our website public disclosures page. This report and press release do not consider individual circumstances and does not take into consideration individual investor preferences. Statements within this report may constitute forward-looking statements, these statements involve many risk factors and general uncertainties around the business, industry, and macroeconomic environment. Investors need to be aware of the high degree of risk in small capitalization equities including the complete loss of their investment. Investors can find various risk factors in the initiation report and in the respective financial filings for Defi Technologies Inc.

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