Shares of DeFi Technologies enter the new year trading near their annual low, overshadowed by significant legal uncertainty. While company leadership outlines ambitious growth initiatives, the threat of class action lawsuits stemming from 2025’s disappointing performance looms large. This creates a stark contrast for investors, pitting expansion potential against a crisis of confidence.
Legal Challenges Compound Share Price Weakness
The primary pressure on the stock is a breach of trust following the Q3 2025 results. Several law firms, including Rosen Law Firm, Robbins LLP, and The Gross Law Firm, are actively recruiting investors for class action suits. The lead plaintiff deadline is set for January 30, 2026.
The allegations claim the company made misleading or incomplete statements regarding:
1. Delays in its DeFi arbitrage strategy,
2. Underestimated competitive risks,
3. Unrealistic revenue projections for fiscal 2025.
These lawsuits were triggered by corporate announcements in mid-November 2025. At that time, DeFi Technologies reported a revenue decline of nearly 20% and significantly lowered its 2025 revenue forecast from $218.6 million to approximately $116.6 million. The stock immediately plunged more than 27% on the news and has failed to recover from that decline.
Stock Performance and Market Context
DeFi Technologies shares concluded the final trading session of 2025 around $0.75 to $0.76. This positions the price just above its 52-week low of $0.73, having lost over 6% in that single session.
The quarterly decline was more severe. Currently trading approximately 85% below its 52-week high of $4.95, the company’s market capitalization now sits in the range of $286 to $291 million.
This downward trend coincides with broader weakness in the cryptocurrency sector. Bitcoin recently slipped to around $87,500 to $88,000, amplifying pressure on crypto-linked equities.
Should investors sell immediately? Or is it worth buying DeFi Technologies?
Management’s Growth Strategy for 2026
Despite the share price deterioration, the executive team is focusing on expansion. In a shareholder letter dated December 31, 2025, the CEO detailed a “growth plan” for 2026, with the goal of building a leading global digital asset manager.
Key points from the communication include:
- Product Range: Subsidiary Valour now offers 102 exchange-traded digital asset ETPs.
- Geographical Reach: New listings have been secured on the London Stock Exchange (LSE), the SIX Swiss Exchange, and Brazil’s B3 exchange. This advances the company’s market entry into Latin America.
- Future Markets: Explicit plans for 2026 include further expansion into Africa and the Middle East.
In a separate business development, it was reported on December 31, 2025, that TenX Protocols engaged an independent trading group and settled a consulting fee with DeFi Technologies via the transfer of over 326,000 shares. This signals ongoing B2B activity despite the challenging market environment.
Key Data and Competitive Landscape
- Current Share Price: Approximately $0.76, near 52-week low.
- Analyst Sentiment: Ranges from “Moderate Buy” to “Strong Buy” (per data from sources including MarketBeat and WallStreetZen).
- Price Targets: The average stands around $4.50, while Morningstar calculates a fair value of $3.00.
- Sector Competition: Rival Bitwise filed applications for 11 new altcoin ETFs (including AAVE and UNI) with the SEC on December 31, 2025, intensifying competition in crypto asset management.
- Crypto Correlation: Bitcoin’s decline to around $87,500 heightens DeFi Technologies’ susceptibility to volatility in the broader cryptocurrency market.
Outlook for the Coming Year
As Valour expands its ETP footprint in Europe and Brazil, competition is intensifying, particularly from US-based firms. Bitwise’s new ETF filings with the SEC suggest that barriers to entry in the crypto investment product space are lowering, leading to product homogenization.
Company President Andrew Forson identifies stablecoins and the tokenization of real-world assets as key growth drivers for 2026. This aligns with industry trends, as the global stablecoin market volume has reached approximately $300 billion.
The critical question for DeFi Technologies is whether its expansions into Brazil and the LSE can generate sufficient revenue to meet its sharply reduced forecasts, all while managing the burdens associated with class action litigation ahead of the January deadline.
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