DeFi Technologies CEO letter says company is stronger in crypto downturn
Johan Wattenström said the firm is better placed than in the last bear market after a 23% one-month share drop and a Swedish FSA setback.
By Rafael Ortiz · Fintech Correspondent
· 3 min read
A DeFi Technologies CEO letter released Monday, July 27, sought to reassure shareholders after the company’s stock fell about 23% over the prior month and a Swedish regulator declined to approve a crypto-related asset structure. Chief Executive and Executive Chairman Johan Wattenström said the FinTech, which links traditional capital markets with decentralized finance, is in a stronger position than during the 2022-2023 crypto downturn.
The share-price decline was about 23% as of Monday morning, according to Google Finance. In the letter, Wattenström said DeFi Technologies is taking the fall seriously and pointed to several factors: weakness across crypto markets, investor rotation away from crypto equities and one-time technical effects tied to the company’s capital raise.
What did DeFi Technologies say in the CEO letter?
Wattenström told shareholders that the company has already been through a similar market cycle. He said DeFi Technologies is now supported by record revenue and net income in 2025, a balance sheet of about $150 million at the end of the first quarter, profitability, effectively no debt and a wider operating base across Valour and Stillman.
Valour, which includes Valour Inc. and Valour Digital Securities Limited, issues exchange-traded products that give investors access to digital assets, according to the release that carried the letter. Stillman Digital provides liquidity solutions for businesses.
Wattenström wrote that he has “never been more confident in our trajectory” and said management is working to build the company and restore shareholder trust and value.
What happened with the Swedish FSA decision?
Wattenström said the company’s UCITS structure for crypto-related assets did not receive approval from the Swedish Financial Supervisory Authority. In this case, the UCITS structure is the framework DeFi Technologies is seeking to use for crypto-related assets, and the regulator’s refusal represents a setback to that plan.
The company has appealed the Swedish FSA decision, according to Wattenström. He also said DeFi Technologies is working to establish the same infrastructure in another part of the European Union.
The letter outlined several operating priorities while the market remains under pressure. Wattenström said the company is investing in both existing and new business areas while reducing costs.
- The company expects to launch its first hedge fund “very soon,” according to Wattenström.
- It plans to expand arbitrage strategies during the second half of the year.
- It is advancing the Valour Custody platform.
- It is seeing growth at Stillman Digital.
- It is pursuing large-scale acquisitions.
The shareholder message comes during a difficult period for parts of the crypto industry. PYMNTS reported Thursday, July 23, that BitMEX said it would close its cryptocurrency exchange after a strategic review of the business and the broader crypto industry. PYMNTS also reported Wednesday, July 22, that SecondFi would shut down its cryptocurrency wallet after an attack that stole $2.4 million from users.
Wattenström’s letter framed DeFi Technologies’ response as a combination of balance-sheet discipline, product development and geographic alternatives for its regulatory plans. The company’s near-term test will be whether those steps can offset investor concerns tied to weaker crypto markets and the failed Swedish approval.
This story draws on original reporting from PYMNTS.
