Shares of DeFi Technologies experienced a notable surge last Friday, drawing renewed attention from investors. However, this upward move is set against a backdrop of significant fundamental challenges, including a sharply reduced revenue forecast and an impending class-action lawsuit. The sustainability of this recovery remains in question.
Legal Clouds Gather Following Drastic Forecast Revision
Even as the share price recovers, legal pressures are mounting. Multiple law firms are currently notifying investors about a planned class-action lawsuit alleging violations of securities laws. The claim pertains to the period between May 12, 2025, and November 14, 2025.
The lawsuit centers on a dramatic downward revision of the company’s financial outlook for the 2025 fiscal year. Management slashed its revenue projection by nearly half, from $218.6 million to approximately $116.6 million. Company executives attributed this significant cut to delays in implementing its DeFi Alpha arbitrage strategy. The legal action alleges that DeFi Technologies failed to disclose in a timely manner the competitive impacts from other Digital Asset Treasury (DAT) providers. Investors who suffered losses and wish to serve as lead plaintiffs have until January 30, 2026, to come forward.
Friday’s Outperformance Stands Out
During the latest trading session, DeFi Technologies’ stock closed at $1.08, marking a gain of 9.11% on elevated trading volume. This performance notably outpaced several peers in the digital asset sector:
* HIVE Digital Technologies: +3.28%
* Bitfarms (BTBT): +5.79%
* A-Mark Precious Metals: +2.17%
This disparity suggests the rally may be driven by company-specific factors rather than broad sector momentum. From a technical perspective, the equity remains under considerable pressure. The current price sits far below its 52-week high of $4.95 and is also beneath the 200-day moving average of $2.40.
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Financial Metrics and Valuation Under Scrutiny
Recent market skepticism is largely fueled by the latest quarterly results. For the third quarter of 2025, DeFi Technologies reported:
* Revenue: $22.5 million (a decline compared to the prior-year period)
* Operating Income: $9 million (down from $14.4 million in Q3 2024)
The company’s current market capitalization stands at approximately $416 million. In the coming week, short-term traders will likely focus on the $1.08 level. Maintaining this price point despite the class-action suit and lowered growth targets could support a continued technical rebound. However, a break below this support would likely renew downward pressure on the stock.
International Expansion Continues Apace
Despite its financial and legal challenges, the firm is pushing forward with its global growth strategy. This week marked the launch of Brazilian Depositary Receipts (BDRs) for DeFi Technologies on the B3 exchange. Trading commenced on December 17 under the ticker symbol DEFT31.
This BDR structure provides Brazilian institutional investors with a way to gain exposure to the stock’s performance using their local currency (BRL), without needing to access foreign exchanges. In a related development, the company’s subsidiary, Valour, received approval to list a Solana Exchange-Traded Product (VSOL) on the same exchange. This move broadens the availability of crypto and digital asset investment products in the South American market.
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