In summary
- A high-performing Canadian Cryptocurrency firm is vying for a listing on the U.S. stock market, potentially opening the company up to an army of new investors.
- DeFi Technologies, the parent company of several cryptocurrency-focused subsidiaries, has filed a Form 40-F registration statement with the SEC to be listed on the Nasdaq stock market.
- DeFi Technologies stock is up 275% year-to-date and has generated $105 million in profits this year.
A high-performing Canadian crypto stock is vying for a listing on the U.S. stock market, potentially opening the company up to an army of hungry new investors.
DeFi Technologies, the parent company of several cryptocurrency-focused subsidiaries, most notably exchange-traded fund (ETF) operator Valour, is currently listed on Cboe Canada under the ticker DEFI, and on OTC markets under DEFTF. On Monday, the company announced it had filed a Form 40-F registration statement with the SEC to also be listed on the Nasdaq stock market.
“The listing of the Company’s common stock on Nasdaq is subject to Nasdaq approval and compliance with all applicable listing and regulatory requirements, including the filing of Form 40-F by the SEC,” the announcement clarified. The company’s shares will continue to be listed on Cboe Canada as well.
In financial market terms, this process is known as “uplisting” – when a company moves from alternative, low-liquidity trading markets to an active, high-liquidity main stock exchange.
Although seen as a great opportunity for smaller companies to accelerate their growth, going public requires overcoming some significant hurdles. Factors include reaching a certain size, market share and financial viability.
So far, DeFi Technologies has been a solid performer across all metrics. Its stock is up 275% year-to-date, and its quarterly profits have far outpaced its operating costs. As of July, the company confirmed it had generated $105 million in profits this year, while its total market cap was just $429 million at the time.
Many analysts, including Reflexivity Research co-founder Will Clemente, have noted that this represents a remarkable price-to-earnings ratio that leaves DeFi Technologies largely “misunderstood” and “undervalued” compared to the average S&P 500 company.
Revealing its second-quarter earnings, DeFi Technologies has bounced back from a mid-year dip to above $2 per share, outperforming most Blockchain stocks during the cryptocurrency market’s lull. Its gains have been driven by Valour, its subsidiary that offers cryptocurrency investment products in Europe, and DeFi Alpha, which finds opportunities to generate profits through low-risk arbitrage trading.
The company announced in June that it holds Bitcoin on its balance sheet. It doubled those BTC holdings in July, and also added Solana and CORE to its treasury.
Edited by Andrew Hayward
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