DeFi Technologies is a public company that provides regulated and secure access to decentralized finance (DeFi) and Web3 technologies. Here's how it generates revenue:
- Exchange-Traded Products (ETPs): Valour, a subsidiary of DeFi Technologies, offers ETPs that allow investors to gain exposure to digital assets like Bitcoin and Ethereum through traditional stock exchanges. These ETPs are regulated and provide a secure way for investors to invest in digital assets without creating a separate cryptocurrency account. Valour has a trading infrastructure to launch single-purpose ETPs and basket ETPs, with over $500 million in Assets Under Management (AUM) as of June 20241.
- Strategic Ventures: DeFi Ventures, another subsidiary, takes diversified positions in DeFi protocols and invests in early-stage ventures in the DeFi space. This arm of the company focuses on pre-seed to series A ventures and is partnered with Coinbase Cloud for secure node infrastructure1.
- Infrastructure: DeFi Technologies participates in DeFi networks like the Pyth Network and earns a fee for each transaction on the network. The company also runs nodes for DeFi protocols, which provides another source of revenue1.
- Arbitrage Trading: The DeFi Alpha trading desk, a business line of DeFi Technologies, generates revenue from low-risk arbitrage trades. In Q2 2024, this desk generated approximately C$113.8 million (US$83.4 million) in revenues2.
- AUM Growth: The company's AUM has shown substantial growth, reaching C$837 million (US$607 million) as of May 31, 2024, driven by net inflows and appreciation of asset prices. This growth contributes to revenue through management fees2.
In summary, DeFi Technologies generates revenue primarily through the sale of ETPs, strategic investments in DeFi projects, participation in DeFi network transactions, arbitrage trading, and asset management fees due to the growth in Assets Under Management.
8/28/2024 12:10am
