DeFi Technologies has significantly strengthened its position in the digital asset sector through the strategic acquisition of liquidity provider Stillman Digital. This move substantially enhances the company’s institutional trading capabilities and creates new revenue streams.
The financial technology firm acquired all outstanding securities of Stillman Digital Inc. and its Bermuda-based subsidiary through a transaction valued at approximately $5 million. The deal involved 2.5 million common shares, with one million shares subject to a one-year lock-up period.
Transaction Volume and Market Presence
Stillman Digital brings impressive trading volumes to the acquisition, having processed over $20 billion in transaction volume since 2021. The company demonstrated particularly strong performance in the second quarter of 2024 alone, handling $5 billion in trades. This acquisition directly supports DeFi Technologies’ strategic objectives to enhance trading capabilities and diversify income sources.
The partnership creates complementary business lines within the DeFi Technologies ecosystem. While subsidiary Valour primarily serves retail investors and high-net-worth individuals, Stillman Digital focuses on institutional on-chain clients. Jonathon Milks, CEO of Stillman Digital, commented that the combination will “enhance our capacity to deliver high-quality liquidity solutions to institutional clients.”
Operational Capabilities and Expansion Plans
Stillman Digital’s operational strength spans three core business segments. Their electronic trading platform processes monthly volumes exceeding $500 million, providing 24/7 streaming prices across more than 30 global exchanges. The OTC block trading division handles average trade sizes above $2 million, managing daily on-ramps of $40-80 million.
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The market-making business currently oversees $400 million in monthly volume through strategic partnerships and is reporting rapid expansion. Future growth initiatives include expanding into custody services, foreign exchange trading, and proprietary trading operations with support from DeFi Technologies.
Financial Performance and Strategic Rationale
Financially, Stillman Digital projects 2024 revenues of approximately $6.7 million with net margins around 50%. This represents an impressive 127% average annual growth over the past two years. The company has consolidated its growth trajectory this year with the launch of its Bermuda subsidiary.
Olivier Roussy Newton, CEO of DeFi Technologies, emphasized the strategic importance of the acquisition, stating it “represents a strategic move that not only expands our capabilities in the trading sector but also diversifies our client base and revenue streams.” The integration is expected to help internalize trading flows from portfolio companies while leveraging Stillman’s expertise for global operations.
The combination of Stillman Digital’s established regulatory framework and banking relationships with DeFi Technologies’ existing operations creates competitive advantages that position the company as a potential major player in institutional cryptocurrency trading.
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